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CRA Is Calling Your Employees Behind Your Back
Solo 18
CRA may be calling your employees — not you — and asking questions about how tips are handled in your business.
Most business owners don’t realize this is happening.
And a court ruling many employers have never heard of could mean payroll tax exposure on tips they assumed were not their responsibility.
This doesn’t just affect restaurants. If you operate a salon, spa, barber shop, café, bar, or any business where tips pass through the employer, these rules may apply to you.
In this episode, we cover:
• Why electronic tips are treated differently from cash tips
• How tips flowing through your bank account can create payroll tax exposure
• The court case that changed the rules for tipped businesses
• How CPP and EI obligations can apply — even when tips are simply passed through
• Common risk areas, including tip pools, auto-gratuities, and POS systems
• Why CRA may contact employees before contacting the business
Many business owners only learn about these risks after an audit has already started.
And once CRA begins contacting staff, some options — including voluntary disclosure opportunities — may no longer be available.
If you know a business that accepts tips, share this video with them. This is an issue many owners don't discover until it's too late.
Links:
📋 For the full episode breakdown and additional tax resources, visit:
🌐 theadvisorstable.com
📞 Looking for Trusted Tax Advice?
Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group
🌐 cedargroup.ca
🔔 Subscribe for real-world tax scenarios that show what happens without planning.
👇 Comment below: Do tips in your business pass through your bank account before reaching staff?
LEGAL DISCLAIMER: This video is based on a real case, but names and some details have been changed to protect client confidentiality. This content is for educational purposes only and does not constitute legal, tax, accounting, or financial advice. Always consult a qualified professional regarding your specific circumstances.
#TheAdvisorsTable #CRA #PayrollTax #BusinessOwners #RestaurantOwners #SalonOwners #SmallBusiness #CanadianTax #TaxRisk
00:00 – CRA Calling Your Employees
00:07 – The Hidden Rule Most Businesses Don't Know
00:22 – Why Tips Can Cost You Big
00:32 – Cash vs. Card Tips Explained
00:57 – How Electronic Tips Create Liability
01:18 – Real Cost and Audit Impact
01:58 – Restaurant Amano Case
02:33 – How Tip Flow Creates Risk
03:02 – Court Ruling: You Owe Taxes
03:12 – CRA vs. Law Confusion
03:50 – Who Is Actually Exposed
04:15 – Three Major Risk Triggers
04:47 – Industry-Wide Problem
05:21 – New System Being Developed
05:49 – What You Should Do (Steps 1–2)
06:22 – Step 3 and Disclosure Warning
06:51 – Final Takeaway
View all episodes
By AdvisorsTablePodcastSolo 18
CRA may be calling your employees — not you — and asking questions about how tips are handled in your business.
Most business owners don’t realize this is happening.
And a court ruling many employers have never heard of could mean payroll tax exposure on tips they assumed were not their responsibility.
This doesn’t just affect restaurants. If you operate a salon, spa, barber shop, café, bar, or any business where tips pass through the employer, these rules may apply to you.
In this episode, we cover:
• Why electronic tips are treated differently from cash tips
• How tips flowing through your bank account can create payroll tax exposure
• The court case that changed the rules for tipped businesses
• How CPP and EI obligations can apply — even when tips are simply passed through
• Common risk areas, including tip pools, auto-gratuities, and POS systems
• Why CRA may contact employees before contacting the business
Many business owners only learn about these risks after an audit has already started.
And once CRA begins contacting staff, some options — including voluntary disclosure opportunities — may no longer be available.
If you know a business that accepts tips, share this video with them. This is an issue many owners don't discover until it's too late.
Links:
📋 For the full episode breakdown and additional tax resources, visit:
🌐 theadvisorstable.com
📞 Looking for Trusted Tax Advice?
Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group
🌐 cedargroup.ca
🔔 Subscribe for real-world tax scenarios that show what happens without planning.
👇 Comment below: Do tips in your business pass through your bank account before reaching staff?
LEGAL DISCLAIMER: This video is based on a real case, but names and some details have been changed to protect client confidentiality. This content is for educational purposes only and does not constitute legal, tax, accounting, or financial advice. Always consult a qualified professional regarding your specific circumstances.
#TheAdvisorsTable #CRA #PayrollTax #BusinessOwners #RestaurantOwners #SalonOwners #SmallBusiness #CanadianTax #TaxRisk
00:00 – CRA Calling Your Employees
00:07 – The Hidden Rule Most Businesses Don't Know
00:22 – Why Tips Can Cost You Big
00:32 – Cash vs. Card Tips Explained
00:57 – How Electronic Tips Create Liability
01:18 – Real Cost and Audit Impact
01:58 – Restaurant Amano Case
02:33 – How Tip Flow Creates Risk
03:02 – Court Ruling: You Owe Taxes
03:12 – CRA vs. Law Confusion
03:50 – Who Is Actually Exposed
04:15 – Three Major Risk Triggers
04:47 – Industry-Wide Problem
05:21 – New System Being Developed
05:49 – What You Should Do (Steps 1–2)
06:22 – Step 3 and Disclosure Warning
06:51 – Final Takeaway