Legal Question in Tax Law in New Jersey

Is a restaurant service charge (really the tip for a large group of diners) taxable in New jersey?


Asked on 6/06/11, 12:43 pm

1 Answer from Attorneys

Walter LeVine Walter D. LeVine, Esq.

To my knowledge the charge is considered part of the income of the restaurant which then claims a deduction for the identical amount it pays the server. This should result in no tax impact to the restaurant as the entries should be a wash. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

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Answered on 6/06/11, 1:58 pm


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