When calculating your source deductions and employer contributions, you must take into account the tips included in your employees' pay. However, if you do not have enough time or if you are missing some of the necessary information when you prepare the employee's pay for the period, you can include them in their pay for the next period.

Refer to the table below to see whether the tips you pay are subject to source deductions and employer contributions and in which box of the RL-1 slip (see courtesy translation RL-1-T) to include them.

Tips subject to source deductions and employer contributions

Tip type	Source deductions and employer contributions				RL-1 slip boxes
	Income tax	QPP	QPIP	Health services fund, WSDRF and labour standards
Net tips reported by the employee	Ö	Ö	Ö	Ö	A, G, I and S
Tips allocated to the employee	Ö	Ö	X	Ö	A, G and T
Controlled tips distributed to the employee1	Ö	Ö	Ö	Ö	A, G, I and S

1. These are the mandatory service charges you distributed to the employee.