At the end of a restaurant shift, Marc knows what he served and what he carried home. Those are not the only numbers his tip record needs.
Quebec's restaurant rules require him to distinguish tips received from customers, tips received through sharing and tips passed to coworkers. The familiar 8% figure belongs to a separate allocation calculation. It is not permission to ignore anything above 8%.
Give payroll the record each pay period
Employees in establishments covered by Quebec's tip measures must declare tips to their employer in writing at the end of each pay period. Restaurants, bars and hotels are common examples; not every workplace where someone receives a tip is covered.
Use TP-1019.4-V, Register and Statement of Tips, or an equivalent document. Keep your copy. A small daily record makes the pay-period statement much easier than reconstructing two weeks from a pocketful of receipts. The current register and statement.
Keep the sharing calculation visible
Here is one day in Marc's register, with no other category of tips:
| Item | Amount |
|---|---|
| Tips received from his customers | $120 |
| Tips received from coworkers through sharing | $15 |
| Tips passed to coworkers through sharing | $25 |
| Net tips for the statement | $110 |
The calculation is $120 + $15 - $25. Recording only the final $110 would lose information needed for the other columns and payroll's allocation check. The official register provides separate spaces for these movements. Register instructions, including columns B, D, E and F.
Record cash and card tips. Keep the associated tippable sales before taxes separate from the tips themselves. Sales where a tip would normally be expected can count even when that customer leaves none. Mandatory service charges follow a different reporting route: the employer includes them in payroll rather than having the employee declare them again as ordinary tips. Employee tip-reporting rules.
What the 8% rule changes
Where the allocation rule applies, the employer generally calculates an additional allocated amount when tips on tippable sales fall below 8% of those sales. Revenu Québec can approve a lower rate, and there are exceptions for certain employees. The calculation uses the relevant tips before distribution to coworkers. Allocation rules.
Consider a separate simplified pay-period example: $1,000 of tippable sales, $60 of customer tips, the standard 8% rate and no exception. Eight percent is $80, so the allocated difference is $20.
But if the customer tips were $120, Marc would report the actual $120 before any sharing entries. He would not replace it with $80. Nor would he use his after-sharing cash balance to decide how much customers tipped.
Compare the statement with the slips
The employer uses the net declared tips, allocated tips and mandatory service charges in payroll and includes tips on the year-end RL-1. Marc keeps his statements so he can ask about a mismatch while the shifts are still recognizable. The tax return should not add the same employer-reported income twice.
Tips that must be reported personally because they are not already included need separate attention. The Quebec employee guidance identifies line 107, code 1, for those amounts. Work across the border also warrants a separate look at Ontario's direct and controlled tips, rather than carrying this Quebec process into another province.
Checked October 20, 2026, against current Revenu Québec guidance and the January 2026 register.
