This backgrounder explains that tips and gratuities controlled by an employer are part of their assessable payroll. However, this does not include direct tips (e.g., cash given directly to a worker from a customer). Including tips in assessable payroll is not a change. In fact, WorkSafeBC is legally required to include tips as part of an employer’s assessable payroll.

Assessing tips and gratuities helps WorkSafeBC ensure that employers are contributing their fair share of assessments for the coverage of workers who may be injured at work. This matters because if a worker is injured on the job, their wage-loss benefits are based on their total earnings, which include tips. If tips were not included in a worker’s income, they would not be fairly compensated if injured at work.

For more information, see Tips and Assessable Payroll — Frequently Asked Questions.