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posted Oct 30, 2019 1:29:36 PM

How do I know if I have to pay additional tax on Tips/Gratuity earned from employment in the Hospitality industry? I believe they were 'Controlled Tips' but I'm not sure.

How do I know if I have to pay additional tax on Tips/Gratuity earned from employment in the Hospitality industry? I believe they were 'Controlled Tips' but I'm not 100% sure. I have contacted my employer but have not heard back from them yet. Your help would be appreciated!

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Moderator
Oct 30, 2019 1:29:38 PM

Controlled Tips are reported on box 14 of a T4 slip. Direct Tips are not reported on a slip. You can enter Direct Tips into TurboTax Online like this:

Click “Find” and search for “Employment Status”, then select it from the list and click on the “Go” button.

Check off “Received tips, gratuities, occasional earnings, or other employment income”, then click the “Continue” button.

On the “Other Employment Income Sources” page, fill in the top line, “Tips, gratuities or occasional earning not reported on a tax slip from the payer”, then click the “Continue” button to save your changes.

https://turbotax.intuit.ca/tips/can-gratuities-be-taxed-in-canada-150