This section is for you if you are an employer in the restaurant, bar or hotel sector and your employees receive tips directly or indirectly as part of their duties in a regulated establishment  subject to the tax measures respecting the reporting of tips.

Employers' responsibilities and obligations with respect to tips

At the end of every pay period, you must:

• accept Part 2 of form TP-1019.4-V, Register and Statement of Tips, or equivalent document that your employees give you to report their tips;
• allocate tips to your employees, if applicable;
• add your employees' tips to their base wages to calculate their source deductions and employer contributions.

You must also report tips on: 

• the RL-1 slip you must file for each of your employees;
• the Employer's Statement of Tips and Tippable Sales that you must send us. 

You may be entitled to a refundable tax credit to offset the additional contributions and premiums you paid on tips.

Penalties

If you refuse to accept Part 2 of form TP-1019.4-V or an equivalent document, you are liable to a penalty of $100 per pay period.

If you fail to pay or remit an amount required under tax legislation and attributable to tips you failed to allocate to your employees, you are liable to a penalty equal to 50% of the amount.