Tip Calculators
There are two recognized tipping structures in Canada
Knowing the differences is important to organizations of all sizes
Employees and employers must each contribute 7.6% of the tip amount for CPP and EI.*
from CPP contributions and EI premiums
RECOMMENDED
Employees and employers are exempt from contributing to CPP and EI.
from CPP contributions and EI premiums
Employer with tips on payroll
If your staff's tips are on payroll, you're using a Controlled Tip model and paying CPP and EI on tips earned
A Direct Tip model provides exemption from CPP & EI for both employer and employee
2024 CPP contribution rate is 5.95% and EI premium is 1.66%. In a Controlled Tip Model where the employer has placed tips on payroll, the employer is taking on the cost of CPP and EI, approximately 7.61%.
Calculate your savings by switching to a Direct model
Employers with controlled tips
Controlled Tip models require employers to contribute CPP and EI from tips and deduct the same amount on behalf of employees.
Direct Tip model removes tax liability from restaurant & employees
2024 CPP contribution rate is 5.95% and EI premium is 1.66%. In a controlled model where the employer has not deducted these amounts, they're responsible for both employee and employer portion (15.22%).
Calculate your CPP and EI savings
Employees with controlled tips
If your tips are on payroll or from a Controlled Tip model, you pay CPP and EI on them.
Keep 100% of your tips!
2024 CPP contribution rate is 5.95% and EI premium is 1.66%. In a controlled model you have to pay CPP and EI on tip amounts and your employer will be required to deduct 7.61% from your tips.
