Fillable Printable Info Sheet: Restaurant & Hotel Industries (De 231E)
Fillable Printable Info Sheet: Restaurant & Hotel Industries (De 231E)
Info Sheet: Restaurant & Hotel Industries (De 231E)
RESTAURANT AND HOTEL INDUSTRIES
DE 231E Rev. 33 (12-16) (INTERNET) Page 1 of 2 CU
The restaurant and hotel industries consist of
establishments that are open to the public or are operated
by membership organizations that furnish meals or
lodging.
The restaurant industry is composed of establishments
that prepare and serve meals and beverages. This
includes, but is not limited to, restaurants, cafeterias,
caterers, cocktail lounges, diners, fast food places, mobile
food services, and takeout or delivery businesses.
Establishments in the hotel industry provide lodging to
their customers or members and include, but are not
limited to, hotels, motels, hostels, inns, rooming and
boarding houses, fraternity or sorority residential houses,
and residential clubs.
WHO IS AN EMPLOYEE?
A worker is a common law employee when the employer
has the right to control the manner and means of
accomplishing the work. Refer to Information Sheet:
Employment, DE 231, for additional information.
Types of employees that are typical in the restaurant and
hotel industries are:
• Chefs • Cooks
• Dishwashers • Kitchen helpers
• Bus persons • Waiters and waitresses
• Maitre d’s • Hosts and hostesses
• Cashiers • Managers
• Delivery persons • Bartenders
• Valets • Clerical and office staff
• Maids • Switchboard operators
• Laundry persons • Repair and maintenance
• Desk clerks
persons
• Bellhops
Other services that may be performed by an employee
under common law rules include, but are not limited to,
bookkeepers, janitors, and entertainers.
WHAT ARE WAGES?
Wages are payments made to an employee for services
performed during employment. The payment may be
made in cash or some medium other than cash. Types of
payments typically considered to be wages are:
• Cash • Lodging
• Meals and beverages • Tips
Employer-provided meals and lodging are subject to
Unemployment Insurance (UI), Employment Training Tax
(ETT), and State Disability Insurance* (SDI). For additional
information, refer to Information Sheet: Personal Income
Tax Wages Reported on the Quarterly Contribution Return
and Report of Wages (Continuation) (DE 9C), DE 231PIT
.
Meals are subject to California Personal Income Tax (PIT)
withholding and reportable as PIT wages unless furnished
for the employer’s convenience and on the employer’s
premises.
If more than half of the employees receive meals that
are for the convenience of the employer, then all meals
furnished by the employer are considered furnished for the
employer’s convenience and are therefore not subject to PIT
withholding or reportable as PIT wages. If fewer than half of
the employees receive meals which are for the convenience
of the employer, then only those meals actually provided for
the employer’s convenience would be exempt from the PIT
withholding and wage reporting requirements.
Lodging is also subject to PIT unless furnished on the
employer’s premises, for the employer’s convenience, and
as a condition of employment.
*Includes Paid Family Leave (PFL).
What Are the Values of Meals and Lodging?
The taxable values of meals and lodging should not be
less than the reasonable estimated values stipulated by
the contract of employment or in a union agreement.
If the cash values are not stipulated in the hiring or
union agreement, the taxable values are established
by regulation. The taxable value of lodging is 66 2/3
percent of the ordinary rental value to the public up to a
maximum per month and not less than a minimum value
per week. The taxable values of meals and lodging are
listed below:
VALUE OF MEALS VALUE OF LODGING
YEAR DAY BR. LU. DI. UNID MAX PER
MONTH
MIN PER
WEEK
2017 $11.50 $2.35 $3.55 $5.60 $4.15 $1,387 $45.00
2016 $11.40 $2.35 $3.50 $5.55 $4.10 $1,332 $43.20
2015 $11.05 $2.25 $3.40 $5.40 $3.95 $1,287 $41.75
2014 $10.90 $2.25 $3.35 $5.30 $3.90 $1,255 $40.70
2013 $10.85 $2.35 $3.30 $5.20 $3.80 $1,224 $39.90
NOTE: These values apply to non-maritime employees only.
Lodging: 66 2/3 percent of ordinary rental value.
The cash values of meals and lodging are subject to change
each calendar year. This information is found under Rates,
Withholding Schedules, and Meals and Lodging Values on
the EDD website at
www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.
htm#MealsandLodging.
Wages Includes Tips
Employees who receive more than $20 in tips in a
calendar month must report all tips in one or more written
statements to the employer on or before the 10
th
day of
the month following the month in which they are received
from the customers. Tips are taxable when the employee’s
statement is furnished to the employer. Banquet tips and
tips controlled by the employer are treated as regular
wages, and their taxability is not contingent upon
employees reporting them to the employer.
Tips received by the employee fro
m the customer in
the form of cash, check, or any other monetary item of
e
xchange are wages subject to UI, ETT, SDI*, and PIT if
they total $20 or more in a month, provided the employee
reports the amount in a written statement furnished to the
employer. Tips should be combined with regular wages
when reported to the EDD. Refer to Information Sheet: Tips,
DE 231T, for more detailed information on reporting tips.
ADDITIONAL INFORMATION
For further assistance, please contact the Taxpayer
Assistance Center at 888-745-3886 or visit the nearest
Employment Tax Office listed in the California Employer’s
Guide, DE 44, and on the EDD website at
www.edd.ca.gov/Office_Locator/. Additional information
is also available through the EDD no-fee payroll tax
seminars. View the in-person course offerings on the EDD
website at www.edd.ca.gov/Payroll_Tax_Seminars/.
The EDD is an equal opportunity employer/program.
Auxiliary aids and services are available upon request to
individuals with disabilities. Requests for services, aids,
and/or alternate formats need to be made by calling
888-745-3886 (voice) or TTY 800-547-9565.
*Includes Paid Family Leave (PFL).
This information sheet is provided as a public service and is intended to provide non-technical assistance. Every attempt has been made
to provide information that is consistent with the appropriate statutes, rules, and administrative and court decisions. Any information that
is inconsistent with the law, regulations, and administrative and court decisions is not binding on either the Employment Development
Department or the taxpayer. Any information provided is not intended to be legal, accounting, tax, investment, or other professional advice.
DE 231E Rev. 33 (12-16) (INTERNET)
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