Are tips subject to CPP and EI
Are tips subject to CPP and EI. Employees in the hospitality business, such as restaurants, hair salons, coffee shops, hotels... usually receive tips in one form or another. Do they or their employers need to pay CPP and/or EI on the tips income. This depends on the types of tips. Tips can be controlled or direct. Controlled tips are gratuities that are controlled by the employer. Since they are controlled by the employer, the employer is considered to have paid these amounts to the employee. The employer adds a mandatory service charge to a client's bill to cover tips; The employer adds a percentage to a client's bill to cover tips; Tips allocated to employees using a tip sharing formula determined by the employer; Tips that an employer includes…