How to Withhold and Record Employee Income Tax on a Restaurant Manager's Salary in Jordan
Deducting income tax from a senior employee's salary and recording the ISTD liability.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Salaries Payable | Liability (-) | 150.00 | - |
| Income Tax Payable (ISTD) | Liability (+) | - | 150.00 |
💡 Accountant's Note
For staff whose income exceeds the tax-exempt threshold, the employer must withhold and remit income tax monthly to the ISTD.
Practitioner & Systems Framework
💻 ERP Architecture
Apply Jordan's income tax brackets to the annual equivalent of each employee's monthly salary to determine the monthly withholding obligation. Most kitchen and floor staff will be below the exempt threshold — only senior managers and high earners typically trigger withholding. Set up a withholding tax calculation table in the payroll system. Remit to ISTD by the 10th of the following month.
⚠️ Audit Flags
ISTD cross-references income tax withholding to SSC payroll filings — if an employee earns above the SSC ceiling but no income tax is being withheld, it triggers an inquiry. Maintain a clear calculation sheet per employee showing why withholding was or was not applied. Annual income tax certificates (Form 116) must be issued to employees by February of the following year.
📄 Required Documentation
Payroll income tax calculation per employee, ISTD withholding remittance records, annual income tax certificates (Form 116) issued to employees, and ISTD acknowledgment of monthly filings.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.