10. Tax credit for the reporting of tips (Line 462)
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 the tips received by or allocated to employees. The credit can also be claimed for the portion of the indemnities that employees earned in relation to tips (vacation pay and indemnities for statutory holidays, for family or parental leave and for leave taken to fulfill family obligations or for health reasons).
The credit can 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 such a 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.
You can claim the credit for employer contributions 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
Tax Credit for the Reporting of Tips (TP-1029.8.33.13-V)