Tip Declaration Calculator: Quebec’s 8% Tip Allocation Rule
Enter one employee’s sales for the pay period and the tips they declared to you: the calculator applies Revenu Québec’s rule, gives the amount you must allocate and what gets added to their pay for source deductions. Everything runs in your browser; nothing is sent.
One employee, one pay period. The amounts come from part 2 of the Register and Declaration of Tips form (TP-1019.4) that the employee hands you.
The rest of the declaration (lines 2 to 4), for net tips
- Threshold: sales × allocation rate
- —
- Tips counted: declared on those sales + service charges
- —
- Amount to allocate to the employee
- —
- Net tips declared (line 5)
- —
- Added to pay: income tax, QPP, HSF and labour standards
- —
- Added to QPIP insurable earnings
- —
Enter the employee's sales to get the amount to allocate.
The InnoBooks till records each tip under the name of the employee who receives it; with employee profiles turned on, its sales report gives each person's sales and tips for the period. See the point of sale →
Sources, read on October 18, 2026: Revenu Québec, Calculating the Amount to Allocate, Tips to Add to an Employee's Salary or Wages and Employees Who Receive Tips.
For information only. It does not replace the official rules: an employee excluded from allocation (see the questions below) gets no allocated amount, whatever the result.
Frequently asked questions
When must an employer allocate tips?
Every pay period, for each employee whose declared tips on their sales, plus any service charges paid out to them, come to less than 8% of those sales. The employer allocates the difference. On $2,000 of sales the threshold is $160; if the employee declared $90, the employer allocates $70.
Which sales count in the calculation?
Sales before taxes on which a tip is customary in Quebec, even when the customer left none. Food or drinks sold to be consumed elsewhere, such as counter takeout and deliveries, are left out. The rules cover restaurants, bars, hotels, motels, inns, sugar shacks and campgrounds that serve on site, among others.
Which employees get no allocated tips?
An employee who made no tip-eligible sales during the period (a doorman, valet, porter or delivery driver, for instance), a cloakroom attendant, an employee who gets at least 90% of their tips from a redistribution by other employees, and one who gets at least 90% of their tips from mandatory service charges of at least 10%. Some shareholders and spouses are excluded as well.
Can the 8% rate be lowered?
Yes. When tips in the establishment usually come to less than 8% of sales, the employer can ask for a lower rate for part of the year with form TP-42.15. If the employer refuses, a majority of the establishment's employees, or of those making the same type of sales, can file the request. The calculator accepts the rate granted.
Do allocated tips count in payroll?
Yes for income tax, the Québec Pension Plan, the Health Services Fund and the labour standards contribution: the employer adds them to pay, along with the declared tips and the service charges paid out. No for QPIP. Allocated tips also do not count when employment insurance and parental insurance benefits are calculated.
One click away from getting started
Everything in one financial tool, designed in Québec for small businesses, freelancers and teams.
Create my free accountFree forever. No credit card required.