This backgrounder explains that WorkSafeBC has updated the language in the assessable payroll practice directive to better explain how tips and gratuities should be treated when employers report on payroll.

The updated practice directive limits assessable tips and gratuities to those “verifiable” by the employer, which means those substantiated through employer records (e.g., those processed through electronic payment systems, or those reported on a worker’s T4).

The change eliminates the need for employers to track and report cash tips as part of assessable payroll. These changes make payroll reporting more accurate, fair, and administratively efficient for employers.