Tips

Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

Source deductions of income tax, QPP contributions and other employer contributions

In calculating an employee's source deductions of income taxQuébec Pension Plan (QPP) contributions, and the employer contribution to the health services fund and the contribution related to labour standards, you must add the following tips to the basic salary or wages:

  • tips that result from tippable sales and that are reported to you by the employee during the pay period on the Register and Statement of Tips (TP-1019.4-V) or an equivalent document;
  • tips that are unrelated to tippable sales (for example, tips the employee received as a hotel valet, porter, doorman or cloakroom attendant) and that are reported to you by the employee on form TP-1019.4-V or an equivalent document;
  • tips that, because they constitute service charges added to a customer's bill, are distributed to the employee for the pay period and do not have to be reported on form TP-1019.4-V or an equivalent document; and
  • tips that you allocated to the employee for the pay period because the amount of tips reported was less than 8% of tippable sales (or was less than the percentage that we set further to a request for a reduction in the tip allocation rate).

When you cannot make all the source deductions because an employee's basic salary or wages (in cash) are insufficient, deduct amounts in the following order:

  • Employment Insurance premium
  • federal income tax
  • QPP contribution
  • QPIP premium
  • union dues
  • Québec income tax

Québec parental insurance plan (QPIP) premiums

In calculating an employee's eligible salary or wages under the Québec parental insurance plan (QPIP), you must add the amounts of the following tips to the basic salary or wages:

  • tips that result from tippable sales and that are reported to you by the employee during the pay period on the Register and Statement of Tips (TP-1019.4-V) or an equivalent document;
  • tips that are unrelated to tippable sales (for example, tips the employee received as a hotel valet, porter, doorman or cloakroom attendant) and that are reported to you by the employee on form TP-1019.4-V or an equivalent document; and
  • tips that, because they constitute service charges added to a customer's bill, are distributed to the employee for the pay period and do not have to be reported on form TP-1019.4-V or an equivalent document.
Note

You are not required to take into account tips that you allocated to the employee for the pay period because the amount of tips reported was less than 8% of tippable sales (or was less than the percentage that we set further to a request for a reduction in the tip allocation rate). These tips are not subject to QPIP premiums.

Fiscal measures respecting the reporting of tips

If you are an employer in the restaurant and hotel sector and your employees carry out their employment duties in a regulated establishment (which is subject to the tax measures respecting the reporting of tips), your employees must submit a written report to you at the end of each pay period detailing the tips they received directly or indirectly.

The following measures apply to the reporting of tips:

For more information, see Tax Measures Respecting Tips (IN-250-V).

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter