Gents,
For employers who pay bonus based on individual sales performance and the business performance by year end. emphasized textCan those bonus paid employees can be treated like commission based employees?
-If the employee is eligible for commission but gets Zero commission for the year, can he/she still claim insurance and property tax? Does commission need to be higher than property tax and insurance.
Unless there is an amount on the T4 in commissions paid there are no deductions, besides office at home etc. A bonus is simply a taxable income
Commissioned salespersons may deduct all of their expenses (except capital expenditures, professional dues and memberships in sports or leisure associations) up to the amount of the commissions received. The limit does not apply to depreciation and interest for an automobile.
So, no commission amount on T4, no deductions.
Where are you getting “memberships in sports or leisure associations” ?? Does he treat all his customers to a complimentary swim at the local sportsplex?
No, but you know sales. Many times you work with clients on deals and customers take time to make a decision. So you end up zero sales for the year, but the year after, it pours .