A Tip: It Pays to Know the CRA Rules on Gratuities
Written by Daniel Standing, LL.B., Editor, First Reference Inc.
Thankfully for servers who work in restaurants, most patrons aren’t like Mr. Pink from the movie Reservoir Dogs who refused to tip. The practice of tipping used to strictly involve cash, but in more recent times, when customers pay for their meals electronically, they often include a tip, leaving it up to the employer to dole them out. The question at issue in 2022 FCA 151 is whether the employer’s payout of tips to its servers is to be considered contributory salary under the Canada Pension Plan, and insurable earnings under . . . [more]
