Question 1

How are commissions taxed in Canada?

Accepted Answer

Commission income is reported on T4 (if employee) or T4A (if independent contractor). Independent contractors earning over $30,000 annually must register for GST/HST.

Question 2

Can commission clawbacks be enforced in Canada?

Accepted Answer

Yes, clawback provisions are generally enforceable if clearly stated in the agreement. However, they cannot reduce pay below provincial minimum wage for employees.

Question 3

What provincial laws apply to commission workers?

Accepted Answer

Each province has employment standards legislation that may exempt commission salespeople from certain provisions like overtime, but minimum wage and termination protections typically still apply.

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