Halifax restaurant payouts: explain sales, fees and tips separately

Keep the till, settlement and payroll views connected

Download the point-of-sale sales summary and the settlement reports for each processor. Match their date ranges and cut-off times. A Friday service may settle on Monday, while one deposit may combine several days. Use a clearing account to show funds still with a processor instead of changing sales to force a bank match.

Tips require a separate payroll review. CRA distinguishes controlled tips from direct tips according to the actual arrangement. Employer control, pooling and distribution matter; a gratuity is not automatically a direct tip because a customer chose its amount. Mandatory service charges also need their own tax treatment. Keep the policy and distribution records with the payroll file.

Illustrative example: a North End restaurant week

Assume a registered restaurant records $8,600 of food and beverage sales, all subject to Nova Scotia’s current 14% HST, giving $1,204 of sales tax. Its reports separately identify $600 of voluntary gratuities and $246 of total documented processor deductions. For this illustration the gratuities are not charges for the food supply; their payroll classification is reviewed separately.

The expected deposit is $10,158: $8,600 plus $1,204 plus $600 less $246. Posting $10,158 as food revenue would overstate those sales by $1,558 and lose the explanations for the other balances. The deduction figure is the actual amount withheld; any eligible input tax credit within fees must be supported by the processor’s tax documents.

Resolve exceptions where they originate

A refunded meal should connect to the original bill and tax adjustment. A delivery-platform promotion needs evidence showing who funded it and how the settlement treats it. A processor reserve is different from a permanent fee; keep it visible until it is released or otherwise resolved.

For gratuities, reconcile the recorded amounts with approved distributions and any payroll deductions required by the arrangement. Do not classify the entire processor deposit as sales and then subtract tip payments without reviewing the accounting and payroll treatment. The reports should permit the owner and payroll provider to follow the same amounts.

Build a short weekly close pack

Keep the daily reports, the settlement reconciliation and the unresolved-item list together. That makes a missing payout easier to find and gives the next month a supported opening balance.

• Match sales and settlement periods.
• Separate sales tax, tips, refunds and processor deductions.
• Track amounts still held by platforms.
• Retain gratuity distribution and payroll decisions.

Put this into practice

• Organize restaurant bookkeeping →
• Connect gratuities and payroll records →
• Reconcile processor clearing balances →