Did you know your WorkSafeBC premiums could rise next year? And that how you handle tips could affect your reporting? A recent conversation with WorkSafeBC shed light on both of these important issues that every salon, spa, and barbershop owner should understand.

1. How WorkSafeBC Wants You to Report Tips

WorkSafeBC is planning to all have salon owners, independent chair renters, and aestheticians to include verifiable tips when calculating total salaries on their annual payroll reports.

Edit Oct. 28, 2025: WorkSafeBC is planning to implement the change in the first quarter (Jan - Mar) of 2026. This article is so you can prepare for the upcoming changes.

So what counts as “verifiable”?

• Verifiable tips are those that can be traced and confirmed through your records—typically tips processed through your POS or credit card system.





• Non-verifiable tips—like a $20 bill handed directly to a stylist—don’t count toward this total because there’s no documentation.

The reasoning is simple: if a worker gets hurt and receives compensation from WorkSafeBC, that payout should reflect their true earnings, including tips.

However, this creates a bit of a headache because WorkSafeBC’s rules differ from the Canada Revenue Agency’s.

• CRA uses the terms controlled and uncontrolled tips.





• If the salon owner handles and distributes the tips (controlled), they’re reported as part of payroll.





• If clients give tips directly to the worker (uncontrolled), the worker reports them personally.

That means you’ll likely need to track two sets of data—one for CRA and one for WorkSafeBC. It’s extra admin work, yes, but it keeps your business compliant and audit-ready.

If you’re unsure how to set this up, BeautyCouncil members can contact us for help. We can walk you through what to record and connect you to CRA or WorkSafeBC advisors for clarity.

2. A 6.7% Rate Increase Coming in 2026

WorkSafeBC also announced a projected 6.7% increase in industry premiums starting in 2026—roughly four cents more per $100 of payroll. That’s higher than inflation and above what many other sectors will see.

Why? Two main reasons:

• The average time off work after an injury in our industry is over 100 days—longer than the provincial average of 80.





• That extra time off means higher costs for WorkSafeBC, which translates into higher rates for everyone in our sector.

The BeautyCouncil is collaborating with WorkSafeBC and other associations to help reduce claims, improve recovery programs, and hopefully ease future increases.

What You Can Do Now

• Review how you record and distribute tips.





• Make sure your staff understand how tips are tracked and reported.





• Keep clean records—especially for verifiable (POS-based) tips.





• Stay tuned for updates and surveys from us; your feedback helps us advocate for fairer rates.

Need guidance?

If you’re a BeautyCouncil member, reach out anytime for support on payroll reporting, tip policies, or WorkSafeBC compliance. We’re here to help you keep your business safe, fair, and in step with new regulations.

See the replies from WorkSafeBC here:

Watch the webinar on tipping policies here:

Disclaimer:
The information provided in this post reflects the author’s understanding of the subject at the time of writing. Every reader’s situation may differ, and specific circumstances or regulations can vary. Readers are encouraged to seek their own legal advice and confirm their requirements with the appropriate authorities or agencies. The BeautyCouncil and the author accept no responsibility or liability for actions taken based on this content.