CIT Commission Tax Calculation

This table shows how the system calculates the tax payable (CIT) on a commission payment:

Calculation Step	Calculation Input	Calculation Output
1. Establish the net annual taxable income from the Commission group box on the Canadian Income Tax Data page.	(income reported in the Commission group box) – (expenses reported in the Commission group box)	(after calculation) Annual taxable income.
2. Determine annual taxes payable.	Apply the annualized tax method to the annual taxable income	(after tax calculation) Annual tax payable.
3. Determine pay period taxes payable.	[(commission payment on current cheque) / (income reported in the Canadian Income Tax Data page)] Х annual tax payable	(after calculation) Tax payable on the current commission payment.