Teryl @ Work

Yes, tips are taxable if they are considered to be part of your gross income and must be declared to SARS. Every time a diner adds a tip to the bill, this income is almost certainly taxable. While there are a number of definitions around the employer /employee / patron relationship, the interpretation given is that income earned in the course of your job should be declared as taxable earnings. Of course, monitoring hand overs of cash is almost impossible.... _____________________________________________________________________ Two case studies direct from the SARS Interpretation Note: No 76 Example 1 – Gross income  Facts:  A, aged 19, works as a porter for the Sparkling Waters Hotel Group in Port Elizabeth.  A is required to assist hotel guests by collecting their luggage on arrival and carrying it to their designated hotel room. A is also required to collect their luggage and transfer it to their vehicle upon departure from the hotel. ...