calculators

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.

Calculate your savings by switching to a Direct Tip model that provides exemption from CPP & EI contributions for both employer and employee.

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*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%.

Atlas supports both recognized tipping structures in Canada

Atlas meets all federal and regional requirements for both recognized tipping structures so you don't have to worry.

Controlled tips

Employees and employers must each contribute 7.6% of the tip amount for CPP and EI.*

The employer decides how tips are divided

The employer does not distribute tips at the end of every shift

The employer uses auto-gratuity

*2026 Rates: CPP 5.95%, EI 1.62%

NOT EXEMPT

from CPP contributions and EI premiums

Direct tips

RECOMMENDED

Employees and employers are exempt from contributing to CPP and EI.

A group of employees known as a "Tip Committee" decide on the tip division model

The employer transfers tips to the committee at the end of every shift

The employer is not involved in distribution

Tips do not go on a credit card or charge card

EXEMPT

from CPP contributions and EI premiums

Atlas works anywhere that tips are earned!

Restaurants

Bars

Hotels

Golf courses

Salons

Valet

and anywhere else

Simply connect your point of sale and scheduling tools and Atlas can automate tip division and distribution with transparent and easy-to-understand reports for you and your team.

Automate tip division

Atlas connects with the POS and scheduling system to automate all manual data entry. Say goodbye to those complicated spreadsheets!

Simple flow for each shift

Follow a few steps to complete the cashout and tip division in a flash.

Complex division models

Atlas Tip Wizard handles the most complicated tip division models so you don’t have to. Divide tips based on a variety of division and tip payment rules for each department.

No more bank trips or cheques

Atlas takes care of the tip distribution, with options to pay each team member based on customized payment schedules from daily to bi-weekly, based on whatever rules works best for your team.

Direct bank transfers

All money movement is managed by Atlas. The algorithm looks after seamlessly moving funds from the business to the employees.

Transparent and compliant

We've done the legwork so you don't have to. Atlas tip management meets federal and regional requirements to protect you and your teams.