Commissions paid to an employee constitute salary or wages and are added to the employee's basic salary or wages or similar payments made to the employee.

Statement of Commissions and Expenses for Source Deduction Purposes (form TP-1015.R.13.1-V)

An employee whose remuneration consists, in whole or in part, of commissions and who is required to pay certain employment expenses can elect to have only a percentage of their commissions included in their remuneration used to calculate source deductions of income tax.

To make the election, the employee must complete the Statement of Commissions and Expenses for Source Deduction Purposes (form TP-1015.R.13.1-V), and submit it to you no later than:

• January 31 of the year
• the 30th day after the date on which they begin 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 their remuneration subject to source deductions of income tax

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

Employee who does not have to pay expenses or who did not complete form TP-1015.R.13.1-V

If the commissions are paid on a regular basis, add them to the employee's basic salary or wages to calculate the source deductions of income tax.

If the commissions are not paid on a regular basis, you can use the method applicable to gratuities to calculate the remuneration subject to source deductions of income tax.

Employee who pays expenses and who completed form TP-1015.R.13.1-V by the prescribed deadline

To calculate the employee's source deductions of income tax, you must add to the employee's 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 shown in form TP-1015.R.13.1-V