If you work in an establishment covered by the measures respecting tips, you must report your tips in writing to your employer at the end of each pay period by completing a Register and Statement of Tips (form TP-1014.4-V) or a similar document. This applies whether you receive tips directly (for example, as a waiter, valet, door attendant, porter, delivery person or cloakroom attendant) or indirectly (for example, as a busser).
Your employer must accept your statement of tips and take the full amount into account. Be sure to keep your part of the statement for your records.
- Tips are the exclusive property of the employee who receives them. If there is a tip-sharing arrangement, the tips belong to the employees concerned.
- Your employer cannot require you to pay credit card costs.
How to report tips
In the statement of tips, enter your total tippable sales. Include sales (before taxes) where customers:
- left you a tip in cash during the day;
- left you a tip by credit or debit card which you received during the day; or
- did not leave you a tip.
Do not include sales of food and beverages for consumption elsewhere than on the premises (for example, sales in a food court or deliveries).
How to calculate tips
Follow the instructions below to calculate the net tips to report to your employer for a pay period.
Add the following amounts:
- tips you received during the day on sales made that day or on a previous day;
- tips you received under a tip-sharing arrangement;
- any tips you received for work as a valet, door attendant, porter, delivery person or cloakroom attendant that you did not receive under a tip-sharing arrangement.
From the result, subtract the tips you remitted to other employees under a tip-sharing arrangement.
If, for example, you receive tips equal to 15% of your sales, you must report your total tips and not just the percentage equal to the allocation rate (for example, 8%).