Royal Spa
Toronto Escorts

Question for tax accountant

believer26

Member
Sep 18, 2007
99
4
8
My friend started working in a tavern last year. The owner is not providing a T4 and has made no tax contributions or deductions on my friends behalf. How can he report this income?
 

roxyfan

Member
Jul 23, 2005
564
1
18
File as other emoloyment income -no T4 provided. CRA will calculate CPP and EI payable. Some people file as self employment income.
 

Taxman2011/12

Member
Dec 24, 2011
40
0
6
File as other emoloyment income -no T4 provided. CRA will calculate CPP and EI payable. Some people file as self employment income.
I would go with the first suggestion. Self-employment, which this is NOT, would trigger self-employed CPP (essentailly paying double)

My first question would be "Is the owner actually calculating the pay using the standard deduction tables and then pocketing the money that should have been sent to CRA?

I have actually seen employers do this and get over $100,000 in the hole to CRA. When they're caught out, it does not always turn out nice. CRA put one guy's house on the market to get their money, and I didn't feel an ounce of sympathy for the guy. Another guy I'm familair with is still trying to fill in the hole about 5 years later on a payment plan [Oh, by the way, he never sent in any GST either - double whammy]. Both were living in very nice houses, driving fancy cars that they really hadn't "earned" through their business profits. Of course, the kicker is they both wanted "deals" on their accounting and tax fees. Eventually, the firm I worked for at the time got a settlement from the receiver after things worked their way through bankruptcy.

More importantly, I would start wondering what else the tavern owner is, or is not doing, like paying WSIB payments? Better not get hurt at work or get punched by a drunk patron.

Happy tax filing.
 

K Douglas

Half Man Half Amazing
Jan 5, 2005
26,135
6,340
113
Room 112
File as other emoloyment income -no T4 provided. CRA will calculate CPP and EI payable. Some people file as self employment income.
This is the correct reporting treatment of such income. Please be aware this will most likely trigger a questionnaire to your friend about the nature of the income. The tavern owner is doing him/herself a disservice by not issuing a T4. It's open season on businesses under this current CRA administration.
 

HOLLYWOODG

Well-known member
Dec 11, 2016
1,206
39
48
I would go with the first suggestion. Self-employment, which this is NOT, would trigger self-employed CPP (essentailly paying double)

My first question would be "Is the owner actually calculating the pay using the standard deduction tables and then pocketing the money that should have been sent to CRA?

I have actually seen employers do this and get over $100,000 in the hole to CRA. When they're caught out, it does not always turn out nice. CRA put one guy's house on the market to get their money, and I didn't feel an ounce of sympathy for the guy. Another guy I'm familair with is still trying to fill in the hole about 5 years later on a payment plan [Oh, by the way, he never sent in any GST either - double whammy]. Both were living in very nice houses, driving fancy cars that they really hadn't "earned" through their business profits. Of course, the kicker is they both wanted "deals" on their accounting and tax fees. Eventually, the firm I worked for at the time got a settlement from the receiver after things worked their way through bankruptcy.

More importantly, I would start wondering what else the tavern owner is, or is not doing, like paying WSIB payments? Better not get hurt at work or get punched by a drunk patron.

Happy tax filing.
The funny thing is the whole Phoenix system the federal government is using for compensation purposes. Apparently, there are a bunch of T4s not issued this year because of mishaps at their end with long tenured employees. Just the tip of the iceberg as the Phoenix system is creating all kinds of havoc. People are being overpaid and underpaid going back many years. Yes, these are Government of Canada employees having such problems.
 

knight12341

Member
Jan 30, 2018
31
8
8
Thats a blessing . Make the goverment chase the money and talk them into a payment plan. Interest free loan ?
 
Ashley Madison
Toronto Escorts