Posted by & filed under Personal Tax.

Description: With the increased use of the tap of debit/credit cards during the pandemic, it’s interesting to see what the Canada Revenue Agency (CRA) has to say about electronic tipping. Many restaurant and bar patrons have become used to seeing the electronic tip option as part of their transaction in paying their bill by card. A restaurant in Halifax was working under the assumption that those electronic tips belonged to the wait staff, and therefore were not considered wages for the purpose of calculating the employer’s portion of Canada Pension and Employment Insurance. The CRA took a different view, however, and has had its position confirmed by a recent court ruling

Date: September 9, 2022



Discussion points:

1) Have you worked as a waiter/waitress and had a percentage of your compensation flowing from electronic tipping?

2) What do you think of this court decision? What will be the impact on the restaurant business?

3) Page 7-12 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses electronic receipts from debit/credit card transactions. What does this section tell us about the internal control over these electronic receipts?

Leave a Reply

Your email address will not be published. Required fields are marked *