If you feel like your payroll costs are spiraling out of control this year, you’re right. Between the new $18.25 minimum wage and the requirement to include verifiable tips in your assessable payroll, most BC restaurant owners are bracing for a massive bill.
What the government won’t call to tell you
The base WCB premium rate for BC restaurants dropped by 26% in 2026. If your premiums are going up instead of down, you have a reporting leak — and it’s costing you real money.
Here is how to plug that leak and keep more of your revenue.
1. Stop Paying for “Non-Verifiable” Cash
The 2026 WorkSafeBC directive is clear: you only report tips that hit your POS or T4. Cash left on the table by a customer is not assessable — full stop.
The Mistake
Reporting an “estimated” tip percentage across your whole staff — including cash tips that were never verifiable.
The Save
If a customer leaves $20 cash on the table, it’s not assessable. Including cash estimates in WCB reporting is giving away $0.58 per $100 for no reason.
2. The “Over-Maximum” Catch
In 2026, there is a maximum amount of salary per worker that is actually assessable by WCB. Many employers are unknowingly reporting past it.
The Mistake
Adding verifiable tips on top of a high-earning GM or Head Chef’s salary — and reporting well past the individual assessable cap.
The Save
You only pay premiums up to the cap. Anything over that is premium-free earnings. Most manual payroll systems don’t track this per employee — a specialist does.
3. Claim Management = Discounted Rates
Your “Experience Rating” can give you a discount of up to 50% off the base rate. If you had a minor injury claim in 2025 that was handled poorly, it’s dragging your 2026 rate up unnecessarily.
The Strategy
By cleaning up safety records and actively managing Return to Work programs, we can move your Experience Rating from a surcharge category into discount territory — shifting your effective rate well below $0.58 per $100.
The Bottom Line
WorkSafeBC estimates that the average BC restaurant should see savings of roughly $1,000 for every $500,000 in payroll due to the lower base rate. If you aren’t seeing those savings, your payroll setup is broken — not the rules.