Words and Phrases - "salaries and wages"

Where tips received by restaurant servers from various sources (directly from the customers, added by the customers to their credit card payments or billed by the restaurant owner, Xco, directly on the customers' bills) to be included in the "labour cost" for the purpose of calculating Xco's "Canadian manufacturing and processing profits". CCRA responded:

[T]ips received by employees directly from customers or through the employer are not part of the term "wages" or "salaries" for the purposes of the definition of "salaries and wages" in section 5202 of the Regulations, but rather are part of the term "other remuneration". It is therefore our view that tips should be excluded from "labour costs" … .