The Canadian Government Is Now Coming After Servers And Their Tip Money So Beware
For anyone who has worked in the serving industry, you know a thing or two about under the table income (money you make that doesn’t show up during tax season). It’s a bit of a job perk and a loophole that the government has unhappily had to deal with. For decades, servers have been able to rake in as much as tens of thousands of dollars annually in tips, without paying taxes on the income generated – but that’s all about to change.
The Globe And Mail just recently reported a terrifying story of dozens of staff and up to 200 managers in PEI receiving a notice from the Canada Revenue Agency (CRA) asking for back taxes on tips earned in previous years. The reason being is that the government now has a way to accurately calculate the amount each server makes without having to audit each person individually.