Alberta businesses in favour of clearer rules on tipping, taxes on tips

Many Canadian restaurants owners say the government needs to come up with specific rules for tipping that are "clear and transparent" for employees and customers alike, a new survey suggests.

In a poll of Canadian restaurant owners, conducted by Angus Reid and Atlas, a leader in hospitality automation and tip management software, 71 per cent of respondents said tipping was important.

Additionally, 54 per cent of businesses in Alberta, support of clearer regulations on the practice.

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"This survey makes it clear that hospitality workers are calling for fair and more transparent compensation models," said Afshin Mousavian, CEO and co-founder of Atlas, in a statement.

Many Alberta restauranteurs (42 per cent) feel tips should continue to be taxed under the current regulations, the poll said.

Just 11 per cent support exempting tips only from income tax, not payroll tax.

The most support for tax exemptions on tips came in Quebec, where 50 per cent of business owners were in favour.

The online survey of 204 Canadian restaurant owners/operators and hospitality professionals was conducted by Atlas from Sept. 27 to Oct. 2.