• General information - Source deductions of Québec ...
• Calculation Method
• Taxable benefits
• Vacation pay
• Bonuses and retroactive pay
• Overtime pay
• Tips
• Director's fees
• Commissions
• Single payments
• Retiring allowance
• Death benefit
• Pension payments
• Payments from an RESP
• Payments from an RRSP or a RRIF
• Earnings supplements

Commissions

Commissions paid to an employee constitute salary or wages, and are added to the regular salary or wages or similar payments. Employees who earn commissions and are required to pay certain employment expenses may elect to have only a percentage of their commissions included in their remuneration subject to source deductions of income tax.

An employee who wishes to make such an election must complete form TP-1015.R.13.1-V, Statement of Commissions and Expenses for Source Deduction Purposes, and submit it to you for 2006 by the latest of the following dates: ·

• January 31, 2006; 
• the 30th day after the date on which the employee begins to be remunerated on a commission basis; 
• the 30th day after the date of an event that may change the percentage of commissions to be included in remuneration subject to source deductions of income tax.

The employee may revoke the election at any time by notifying you in writing. The revocation takes effect on the date indicated on the notice.

Employees who do not have to pay their expenses or did not complete form TP-1015.R.13.1-V

In both these cases, if you are using the Source Deduction Table for Québec Income Tax (TP-1015.TI-V), and the commissions are paid on a regular basis to the employee, add them to the salary or wages when you calculate the remuneration subject to source deductions of income tax.

Then determine the income tax withholding in the usual way. If you are using the mathematical formulas, include the commissions in variable G.

However, if you use table TP-1015.TI-V and the commissions are not paid on a regular basis, you may use the method applicable to bonuses. If you are using the mathematical formula based on regular payments, you may use either of the methods applicable to bonuses to calculate the income tax withholding. If you are using the mathematical formula based on a cumulative average, include the commissions in variable G.

Employees who have to pay their expenses and who completed form TP-1015.R.13.1-V within the prescribed time period

If you are using the Source Deduction Table for Québec Income Tax (TP-1015.TI-V), calculate the employee's remuneration subject to source deductions of income tax by adding to his or her basic salary or wages the result of the following calculation: ·

• the amount of the gross commissions paid to the employee for the pay period, 
• multiplied by the percentage of commissions determined on form TP-1015.R.13.1-V.

Continue the calculation of the remuneration subject to source deductions of income tax and determine the income tax withholding in the usual way.

If you are using the mathematical formulas in the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V), include the commissions in variable G.