Tax on tips: Whose duty is it, anyway?

Seeing a deduction for PAYE (pay-as-you-earn tax or employees’ tax) on one’s payslip, can stir an emotion in you that you may not know existed. HR and IR Advisors field many complaints from employees (normally during December) when, because of a bonus they have now exceeded the threshold and have to pay PAYE. To say that they are unhappy would be an understatement. As it is said, “death and taxes” are the only 2 certainties in life.

Except it seems when it comes to being a waiter where the issue of being taxed on tips is anything but certain.

The question of who is responsible for the tax declaration has long been debated. HR Consultant Allan Bolt shares his opinion.