It’s tax time. Please share this important notice with your employees:
Like many others in the service industry, you may receive tips to supplement your income. Make sure you take the Canada Revenue Agency (CRA) into consideration, and report all income from gratuities.
Tips are taxable income and it’s up to you to keep track of them. Your employer may not track the cash you receive from tips, which means your T4 income slip may not reflect your total income. Earnings not included on your T4 slips should be reported on line 104 of your tax return. By keeping track of your tips throughout the year, you’ll avoid stress at tax time and reduce the possibility of reporting an incorrect amount.
Did you know that deliberately not reporting your tips is illegal? If you’re caught evading taxes, you may face fines, penalties, or even jail time.
Need access to your tax information on the go? With the MyCRA mobile app, you can securely access and view key portions of your tax and benefit information. You can also update your contact information, register for direct deposit, manage your online mail, and more. Bookmark the app on your mobile device to have your tax and benefit information available whenever and wherever you need. To get the app, go to www.cra.gc.ca/mobileapps.
If you’re entitled to a refund, you can get your money in as little as eight business days, by combining online filing with direct deposit. For a list of software and web service options, including some that are free, go to www.cra.gc.ca/netfilesoftware.
Don’t miss the latest CRA news or tax tips – follow the CRA on Twitter: @CanRevAgency.