Unravel the world of tips and income reporting in this mustwatch video! Learn what tips and gratuities really are, and grasp taxable income essentials as per the CRA. Explore two key tip categories, including practical examples.

Discover how to report controlled and direct tips on your income statement, with essential guidelines for employees. Find out what to do if your tips aren't on your T4, and the consequences of neglecting cash tips. Uncover the perks of reporting tips as income and get ready for valuable insights on RRSP vs. TFSA.

CRA RESOURCES:
https://www.canada.ca/en/revenueagen...

WATCH MY VIDEO ON TFSA vs RRSPs:
   • TFSA or RRSP? | What’s the difference?  



Keywords: Tips and Gratuities, Taxable Income, CRA Guidelines, Controlled Tips, Direct Tips, Income Statement Reporting, T4 Tips, Cash Tips Reporting, Benefits of Reporting Tips.



00:00 Intro
00:26 What is a Tip and Gratuity?
00:45 Taxable Income According to CRA
00:57 The Two Categories of Tips
01:06 Category 1 Controlled Tips
01:15 Controlled Tips Example
02:00 Category 2 Direct Tips
02:12 Direct Tips Example
02:52 Receiving Controlled and Direct Tips
03:06 How Do I Report This On My Tax Return?
03:31 General Guidelines Employee
03:52 What if My Tips Are Not On My T4?
04:18 What Happens If I Don't Report Cash Tips?
04:41 Benefits of Reporting Tips and Gratuities as Income
05:34 Summary
06:09 Outro



FREE RESOURCES
➤ Grab a copy of my monthly business checklist to keep important tasks organized! https://senseaccounting.ck.page/month...
➤ Grab a copy of my rental property income & expense tracker for landlords to make tax time a breeze! https://senseaccounting.ck.page/renta...



ABOUT ME
Hi, my name is Irene! During my time working in public practice, I realized that so many small businesses had so much untapped potential because they were missing a vital component in their business: Company Finances. Many business owners were never taught financial literacy and I realized that there was a need for accounting services with a modernday approach that supported business owners. That is how Sense Accounting CPA was born. We are a cloudbased firm that provides bookkeeping and fractional CFO services for Canadian small businesses. The goal for this channel is to share important accounting and tax information for Canadians.



LET’S CONNECT
Social Media Handles are all @SenseAccountingByIrene
➤ Instagram @SenseAccountingByIrene   / senseaccountingbyirene  
➤ TikTok @SenseAccountingByIrene   / senseaccountingbyirene  
➤ Website: https://www.senseaccounting.ca



Disclaimer – The information presented in this video is for entertainment purposes only. Although I am a Chartered Professional Accountant, I am not your accountant and therefore, the information should not be taken as financial or legal advice. Every individual's situation is unique, and it is important to consult with a qualified financial or legal professional before making any decisions related to your personal finances or legal matters.