Tax rates, regulations, and compliance guides for Canadian restaurants.
Always consult the Canada Revenue Agency (CRA) or a qualified accountant for advice specific to your situation. Tax regulations can vary by province and may change over time.
If your restaurant operates under controlled tips — where the employer or manager controls how tips are distributed — you are required to pay CPP (Canada Pension Plan) and EI (Employment Insurance) contributions on those tips. This is not just a requirement — it's a benefit for your staff.
Staff build meaningful CPP retirement benefits, EI coverage provides protection during job loss, and there are no year-end tax surprises for employees.
Tippo helps restaurants maintain transparency and compliance, regardless of which tip management model they use.