Are tips or gratuities taxable for businesses?
Tips are taxable, however, who claims them on their tax depends on the situation. If a tip is given directly from a customer to an employee without being run through the business system or without being mandated by the business, then chances are the business does not have to claim them as taxable income, only the employee does. If the tips are considered controlled tips, then they are treated differently and the business may be expected to claim a portion of the tips as taxable income.
CRA link: www.canada.ca/...
Book a free 1-on-1 consultation with Josh: magnaltus.com/...
Free Business Startup Checklist: magnaltus.teac...
Free business resources: magnaltus.com/...
Magnaltus Instagram: / magnaltus
Free Saskatchewan Startup Checklist: magnaltus.teac...
#business #businessmanagement #businessstartup
5 окт 2024