This consultation is closed. The revised practice directive will come into force on January 1, 2026.

Overview

• What: Amendments to the assessable payroll practice directive to clarify how tips and gratuities are treated for payroll reporting purposes
• Who: All B.C. employers whose workers may receive tips or gratuities, including, but not limited to, foodservice, hospitality, taxi and ride-hail, local delivery, esthetic services including hair salons, and pet grooming
• Why: To ensure fairness for all employers, ensure consistent reporting, and clarify the practice directive language
• Key topics: Tips, Gratuities, Assessable payroll, Employer, Practice directive

Summary

WorkSafeBC is updating the language in the assessable payroll practice directive to better explain how tips and gratuities should be treated when employers report on payroll. This change does not create new obligations for employers; it further defines the scope and clarifies guidance that has been in place since 2010. The change aligns with other jurisdictions throughout Canada, such as Alberta and Ontario. The goals of this update are to:

• Support consistent reporting of tips and gratuities in assessable payroll
• Clarify what makes tips “verifiable”
• Help employers understand their responsibilities more clearly

Consultation sessions on the proposed clarification were held in June. B.C. employers and worker representatives were invited to continue providing feedback until July 31, 2025.

We received feedback from:

• B.C. employers whose workers receive tips
• B.C. employers whose workers do not receive tips but are part of the same classification unit as those who do
• B.C. employers or worker representatives who wished to learn more about the proposed update

The affected groups and classification units are listed in Appendix 1 of our report on the consultation, “What we heard” report — Consultation on the Assessable Payroll Practice Directive: Tips and Gratuities.

How will this affect you?

Beginning on January 1, 2026, WorkSafeBC will be moving forward with the following key changes:

• Eliminating the need for employers to track or report cash tips as part of assessable payroll.
• During an audit, employers will only be required to provide reports of tips and gratuities that are "verifiable," primarily through existing point of sale (POS) systems or other electronic means of payment.
• Eliminate the requirement to provide auditors with a copy of the employer’s policy related to tips and gratuities or to interview staff about the tip out processes or procedures, when verified through payment systems.

Learn more

Review the approved changes that will take effect on January 1, 2026:

• Amendments to Appendix B — Specific Inclusions and Exclusions of Assessment Practice Directive 5-245-2(A). Changes are noted in red text.

Read the report on this consultation:

• “What we heard” report — Consultation on the Assessable Payroll Practice Directive: Tips and Gratuities

See a summary of the changes:

• Changes to the assessable payroll practice directive

Review the amended practice directive:

• Assessment Practice Directive 5-245-2(A) — Assessable Payroll

The following FAQs address commonly asked questions:

• Tips and assessable payroll: Frequently asked questions (General)
• Tips and assessable payroll: Frequently asked questions (Restaurants)

Watch a video of the presentation from the consultation sessions:

• Proposed Assessable Payroll Practice Directive Consultation: Tips or Gratuities