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Employer with controlled tips
Controlled Tip models require employers to contribute CPP and EI from tips as well as deduct the same amount on behalf of employees. A direct tipping model with Actual removes tax liability from the restaurant or place of business as well as the employees.
*2026 CPP contribution rate is 5.95% and EI premium is 1.64%. In a Controlled Tip Model where the employer has placed tips on payroll, the employer is taking on the cost of CPP and EI, approximately 7.59%.