Employees paid by commission
If an employee is paid on commission or receives a salary plus commission, you can deduct tax in one of the following ways:
Employees who earn commissions without expenses
If you pay commissions periodically or the amounts fluctuate, you may want to use the bonus method to determine the tax to deduct from the commission payment.
Employees who earn commissions with expenses
Employees who are paid in whole or in part by commission and who claim expenses may choose to fill out a Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions in addition to Form TD1.
Employees who claim employment expenses on their income tax and benefit return must have their employer complete Form T2200, Declaration of Conditions of Employment.
An employee may choose, at any time during the year, to revoke in writing the election he or she made. Use the total claim amount from the employee's Form TD1 instead.
Forms and publications
- Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions
- Form T2200, Declaration of Conditions of Employment
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