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As a salesperson, you can either be classified as an employee earning commission income or as a self-employed commission salesperson. How to report your commission income and claim your expenses on your tax return depends on which category you are in.
Issuing T4 and T4A information slips is what a small business owner should be familiar with especially if the business hires employees or sub contractors.
You have to file your tax return on time even if some slips and receipts are missing. Under reported income may result in interest and/or penalties charge.
As an employer, you are responsible for making regular deductions from your employees’ remuneration. You have to remit the deductions along with your share of contributions to the Canada Revenue Agency (CRA). And you have to report your employees’ remuneration and deductions on the T4 slips.
Public transit amount is a non refundable tax credit for the cost of public transit passes for travel in Canada on local buses, streetcars, subways, commuter trains, or local ferries.