Employees who work in a regulated establishment (This link will open a new window) must report the tips they receive directly or indirectly to you in writing. The employee must report his or her tips on the Register and Statement of Tips (form TP-1019.4-V) or an equivalent document and give you a signed statement of tips at the end of each pay period.
If you refuse to receive an employee's written statement of tips, you are liable to a penalty of $100 for each pay period for which you refuse to receive such a statement.
You need the employee's statement to correctly include, in the calculation of source deductions and contributions, the tips that your employees received or that you allocated to them in a pay period in addition to their basic salary or wages. Employees such as waiters, hotel valets, porters, car attendants, doormen, delivery persons and cloakroom attendants are subject to this obligation if they carry out their duties in a regulated establishment.
Tips that must be reported to you
An employee is required to report the following tips to you in writing at the end of each pay period:
- tips that he or she receives directly;
- tips that he or she receives from other employees because there is a tip-sharing arrangement administered by the employees;
- tips that you receive because there is a tip-sharing arrangement administered by you.
From these tips, the employee must subtract any tips remitted to another employee under a tip-sharing arrangement administered by the employees.
If you administer the tip-sharing arrangement, you must subtract any tips you remitted to other employees.
At the end of each pay period, the employee must file a statement of tips to report all tips on tippable sales (This link will open a new window). You need the statement to calculate the amount of tips to be allocated to an employee who reports tips representing less than 8% of the amount of his or her tippable sales (or a lower percentage determined by Revenu Québec further to a request for a reduction in the allocation rate).
If you administer the tip-sharing arrangement, you have the information necessary to determine whether you must allocate an amount of tips to an employee. The employee is also required to complete and remit to you a written statement of the amount of tips he or she received.
In his or her statement of tips, the employee is not required to include tips that consist in service charges added to the customer's bill.
Tips received in a later pay period
Where the employee does not receive a tip pertaining to a sale during the pay period in which the sale was made, the tip is considered to have been received in the pay period in which you receive the amount corresponding to the transaction. The employee must therefore report this tip for the pay period in which it is received.