Tips and Gratuities: Employer’s Responsibilities
Written By Kyle on May 25, 2016
Gratuities or tips received by employees are income earned from employment. However, it must be determined whether these tips are pensionable and/or insurable, that is, whether the employer should be withholding CPP and/or EI. This depends on whether the tips are considered to have been paid by the employer. Administratively, CRA looks at whether the tips are controlled by the employer or are considered to have been paid by the customer (a direct tip). A December 16, 2015 Tax Court […]
