Tag Archives: tips

TAX MYTH – Reporting Tip Income

Written By on April 28, 2017

Every year across Canada, some of the country’s service industry workers file their taxes without adequate support for their tip income. Tax Myth: I can report my tip income as a percentage of my T4 Although this is a common practice for some taxpayers in Canada, it is not an acceptable method of reporting tip income. In fact, in some cases the employees are not required to report tips at all as the responsibility may fall on the employer. Regardless of […]

Tips and Gratuities: Employer’s Responsibilities

Written By 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 […]

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