(May 13/15) Tipping has been around for centuries, but today it is regulated for tax purposes. As a restaurant owner, you need to be aware of these laws to stay on the right side of the Canada Revenue Agency and provincial requirements. For tax purposes, CRA classifies tips into two categories: controlled and direct.
Members: Read our handy tip sheet on the different types of tips and taxes. You should also educate your employees on their responsibilities to report all of their tip income to the CRA. Read our tax tips for tipped employees.