QIT Commission Tax Calculation

Unlike the federal Statement of Commission Income and Expenses For Payroll Tax Deductions (TD1X) that is used to estimate the net annual taxable income amount, the Quebec Statement of Commissions and Expenses For Source Deduction Purposes (TP-1015.R.13.1-V) establishes a ratio to annualize the current cheque's commission payment.

For Quebec provincial tax, the current cheque's commission earnings is annualized using the ratio determined by the income and expenses reported in the Commission group box on the Quebec Income Tax Data page.

This table shows how the system calculates the QIT payable on a commission payment:

Calculation Step	Calculation Input	Calculation Output
1. Derive the ratio to apply to the current cheque's commission earnings amount to calculate annual income.	[(income reported on the Quebec Income Tax Data page) – (expenses reported on the Quebec Income Tax Data page)] / (income reported on the Quebec Income Tax Data page)	(after calculation) Ratio of commissions to be included.
2. Apply the derived ratio against the current cheque's commission payment to determine the annual taxable income.	(ratio of commissions to be included) Х (commission payment on current cheque) Х (annual factor)	(after calculation) Annual taxable income.
3. Determine the QIT payable for the pay period.	Apply the annualized tax method on the annual taxable income	(after tax calculation) Tax payable on the current commission payment.