Calculator
Employer with tips on payroll
If your staff's tips are on payroll, you're using a Controlled Tip model and paying CPP and EI on tips earned.
Calculate your savings by switching to a Direct Tip model that provides exemption from CPP & EI contributions for both employer and employee.
*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%.