S10: CRA Is Calling Your Employees Behind Your Back

CRA may be calling your employees — not you — and asking questions about how tips are handled in your business.

This isn't just for restaurants—if you run a Salon, Spa, Barber Shop, or Cafe in Canada, the CRA's new focus on electronic tips affects you

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 episode, 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.

If you know a business that accepts tips, share this with them now. Most owners don’t know this risk exists until it’s too late.