Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
Article content
Most Canadians believe the country’s tipping culture has gotten out of hand and feel that gratuities are too high, according to a new study by H&R Block Canada Inc.
Article content
The study, which interviewed 1,790 Canadians in February, found that a whopping 94 per cent are annoyed by card payment machines prompting tip options for services that traditionally haven’t required gratuities. Still, more than 57 per cent of them feel awkward skipping the prompts and tend to leave a tip anyway.
Article content
On average, Canadians consider nine per cent to be the appropriate tipping amount, which is well below typical gratuity prompts for most services. Fifty-three per cent of those surveyed identity as “frugal tippers” and typically opt for the lower tip option or only tip for exceptional service.
“Our research indicates that many Canadians are feeling the strain of financial pressures,” Yannick Lemay, tax expert at H&R Block Canada, said in an email. “When Canadians are feeling financial strains they look for ways to cut back spending.”
Most Canadians, 88 per cent, believe that tipping culture has become a means for employers to pay their staff less and 91 per cent think that employers should cover their employees’ full wages. They are also divided on who they think pockets the tip, with around half believing the worker keeps it and the other half believing it goes to the employer.
Most of those surveyed are aware that tips are considered taxable income, but despite this, 47 per cent assume that workers are not declaring their tips when filing their taxes.
“It’s important to emphasize that tips are considered taxable income, by law, even if your employer does not include any tip amount on your T4 slip. But the good news is there are many ways to make your tips work in your favour when it comes to filing your taxes,” Lemay said in a press release. “Not only are there numerous deductions, benefits and credits you can leverage, there are tax-friendly ways to use your tips to invest in your professional growth and well-being and bolster your savings.”
Recommended from Editorial
Overall, only 30 per cent of Canadians support a strong tip culture, despite 31 per cent having directly worked in a gratuity-based job at some point in their lives.
• Email: novid@postmedia.com
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.
Share this article in your social network
