On January 1, 2026, WorkSafeBC updated the assessable payroll practice directive to clarify that employers no longer need to track or report cash tips as part of assessable payroll, unless they are already included on a worker’s T4.
These updates do not create new employer obligations. They provide guidance on long-standing requirements and support fair, consistent payroll reporting across B.C.
Who does this affect?
These changes apply to all employers whose workers may receive tips and gratuities, including:
- Food, beverage, tourism, and other
- Ride hail (including app-based) and local delivery services
- Health, wellness, beauty, and pet grooming services
What’s changed?
Only verifiable tips need to be reported
Starting January 1, 2026, employers only need to report verifiable tips, meaning those that can be confirmed through:
- Electronic payment systems
- Other electronic payment records
- Tips shown on a worker’s T4 slip
Cash tips no longer need to be tracked
Cash tips no longer need to be reported as assessable payroll, unless you are already including them on a worker's T4. This reduces administrative work and simplifies payroll reporting.
Clearer guidance and greater consistency
Tips and gratuities have been part of the assessable payroll practice directive since 2010.
The January 1, 2026, update:
- Clarifies what counts as a verifiable tip
- Improves consistency in reporting assessable payroll across industries
- Reduces confusion about reporting
Why this update matters
The updated directive:
- Supports fairness — Employers report based on verifiable payroll, helping ensure consistent assessments.
- Improves clarity — What counts as assessable payroll and what does not is clearly defined.
- Reduces administrative burden — No additional requirement to track cash tips that aren't included on a worker's T4.
- Makes audits simpler — This update is intended to support simpler and more efficient audits while allowing flexibility for employers with different recordkeeping practices.
Resources
- Summary of changes to the assessable payroll practice directive
- Amended Assessment Practice Directive 5-245-2(A) — Assessable Payroll
- “What we heard” report — Consultation on the Assessable Payroll Practice Directive: Tips and Gratuities
Questions?
If you have questions about reporting assessable payroll, you can email our Stakeholder Relations team at StakeholderRelations@worksafebc.com.