Tax Credit for the Reporting of Tips

If you or a partnership of which you were a member carried on a business in the restaurant and hotel sector in Québec, you may be entitled to a refundable tax credit for the employer contributions that you or the partnership paid to the governments of Québec and Canada on both of the following:

• the tips received by or allocated to employees  
• the portion of the indemnities earned by employees (vacation pay and indemnities for statutory holidays and family or parental leave) that is related to tips

The credit may also apply to the employer contributions paid on an employee's tips where you control substantially all of the employee's tips because service charges are added to the customer's bill. In this case, the following conditions must be met:

• The tip required of the customer is, in substantially all cases, equal to at least 10% of the sales on which a tip can be calculated. 
• The customer is informed of the compulsory tip and the percentage charged. 
• Any tip-sharing arrangement in effect is administered by you.

The employer contributions that entitle you to this credit are those paid under the following laws:

• Act respecting the Québec Pension Plan 
• Act respecting the Régie de l'assurance maladie du Québec 
• Employment Insurance Act 
• Act respecting labour standards
• Act respecting industrial accidents and occupational diseases
• Act respecting parental insurance

To claim the tax credit, complete form TP-1029.8.33.13-V, Tax Credit for the Reporting of Tips.