CanadaOne Twitter CanadaOne Linkedin CanadaOne Facebook CanadaONe RSS

Ask an Expert

Do independent sales representatives earn GST/HST plus commission?

Expert: Hank Bulmash

Joanne asked:

We have independent sales reps in the field. When I pay them a commission on the sale they make for us, do I pay them GST or HST on top of their commission percentage?

Hank Bulmash answered:

Your independent sales reps are self-employed. That means you don't pay CPP, EI or vacation pay on their behalf. Since the payment is not employment remuneration (like an employee who earns commissions), you do have to pay them GST/HST as long as they're registered.

They should register if they earn more than $30,000 per year.

About the author

Hank Bulmash
Bulmash Accounting Professional Corporation/CPA
Linked In:

Click here to go back to Ask-an-Expert index page.