Pooling of tips

Good afternoon po. The company I’m currently with has been pooling tips since 2014. However it was never given to us though we can see that they collect the tips given by the patrons from the designated tip boxes. The representatives of our department have tried to talk and negotiate with the management but to no avail. They we’re claiming that the tips collected have been absorbed by the incentive which is a part of our salary. However, the incentive is taxed every pay. We are only claiming what is rightfully ours. They do not even show us a transparent count and audit of the tips collected ever since the company opened. What legal step should we take? Is the company liable for not giving out the tips to the employees? Is it legal to tax tips since they are claiming that it is absorbed by that taxable incentive? Thank you for your advise.

God bless!

tips are taxable

Can you elaborate on that? [/url]

yes i can. whats your question?

I asked if tou can elaborate your first reply and explain how.

so ano nga ang question? if tips are taxable? yes they are. you may confirm sa bir thru their hotline

981-7003. ask for the officer of the day

if i misunderstood your question, pls clarify what you are asking.

What legal step should we take?
- legal steps on what?

Is the company liable for not giving out the tips to the employees?
- yes they are liable but do you have proof that they are not giving it to you?

Is it legal to tax tips since they are claiming that it is absorbed by that taxable incentive?
- yes it is legal. as luke said you can call BIR.

aizaalarcon wrote:Can you elaborate on that? [/url]

btw, if you are going to quote something, quote it from a reliable source such as BIR website or any BIR circulars. This is made by a company selling products that might got their wordings wrong such as "part of taxable income but not subjected to withholding tax"