Service charges refer to the amount collected by hotels, restaurants and similar establishments.
Who are entitled to service charges?
85% of the total of service charges shall be given to all rank-and-file employees and 15% may be retained by management to answer for losses and breakages and for distribution to managerial employees.
What is the frequency of distribution of service charges?
It shall be distributed once every 2 weeks or twice a month at intervals not exceeding 16 days.
How to compute service charges?
Service Charge = (([Total Service Charge] x [85%] ) / [Number of Rank and File employees])
= (([250,000 x 85%]) / )
= 212,500 / 50
= 4,250 per employee
How to setup a payment for service charges
If you are setting up a “Service Charge” for a small group of employees.
Here’s what you need to do:
Bank is where you can keep track of the debit/credit for the cash advance.
- Create a bank for your Service Charge.
- Click on Setting
- Click on Banks
- Click “Add a new bank”
- Type in the name “Service Charge”
Here’s a screenshot:
– Click on “Create” once you’re done.
1. Follow the procedures on how to setup Payment Template using the Multi Insert – Payment Create Tool to easily add the employees Service Charge Payments.