CRA Is Calling Your Employees Behind Your Back
How electronic tips can create unexpected CPP and EI liabilities for employers – and why CRA may be gathering information from employees before contacting the business.
📥 Free resources from this episode
CRA Audit Protection Checklist
The Advisors TableCRA Audit Protection Checklist
Three phases of audit defence — what to document before a CRA agent shows up, how to handle requests during an active audit, and how to respond after a reassessment. Includes the 90-day objection deadline and the TEBA metric CRA tracks internally.
Show Notes
CRA may be calling your employees – not you – and asking questions about how tips are handled in your business.
Most owners don't even know this is happening.
And a court ruling many businesses have never heard of could mean payroll taxes on tips you thought weren't your responsibility.
In This Solo, We Cover:
• Why electronic tips are treated differently from cash tips
• How tips passing through your bank account create payroll tax exposure
• The court case that changed the rules for tipped businesses
• How CPP and EI can apply – even if you just pass tips through
• Common risk areas: tip pools, auto-gratuity, POS systems
• Why CRA may contact employees before contacting the business
This doesn't just affect restaurants – it applies to salons, spas, cafés, bars, and any business where tips flow through the employer.
And once CRA contacts your staff, some options – like voluntary disclosure – may already be off the table.
Most owners don't know this risk exists until it's too late.
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