Whenever a product or service is hot, it travels across the internet non-stop and draws the attention of both those that want to use it, as well as those who would like an opportunity to sell it. Such is the case of the Arbonne commissioned reps opportunities. The program that is affiliated with this type of sales opportunity is called a Network Marketing Program or a multi-level marketing program. If you as a Canadian are a representative of this product and are receiving commissions, then you have the obligation to include this income on your tax return. Commission reporting can get complex so having a Toronto Accountant to do your taxes for you will help with this.
Network marketing often gives a commission rep the chance to glean some income off the commissions of other reps that come under them. It is sometimes mistakenly thought that the income that comes from this scenario is not to be claimed as commissions. Most income has to be reported on your tax return. This is an area that you really need to have a good accountant take care of you, especially if you are involved in a network or multi marketing program.
When it comes to a business the CRA indicates that you must be operating this business with expecting it to make a profit. If this is in place then you are also allowed to deduct some expenses that are incurred as a result of trying to generate a profit.
Aside from Arbonne commissioned reps, there are many other tax payers involved in commission earning throughout a whole variety of industries. The CRA has set rules for those involved in commission earnings as well as guidelines as to what could be classed as potential expenses. In order to take advantage of these expenses there are some criteria that you must adhere to.
Some of the rules are that you have to pay your expenses out of your own pocket. Your employer does not pay these for you. Also you are usually expected to carry on your work outside of the employer’s place of business. You do actually receive payments by way of commissions that are based on sales volume or negotiated contracts. You cannot be in receipt of a non-taxable allowance for your travel cost.
If you have met all of this criteria then you are also required to keep an employer signed Form T2200, Declaration of Conditions of Employment.
It doesn’t matter what level in the multi marketing program you may be in as a Arbonne commissioned rep, or if you are starting any type of new business, it would be a good decision on your part to utilize the services of a Toronto accountant to help ensure you are completing your taxes as per your responsibility, and also getting the benefit of potential expenses related to your commission based business. If you need help with your personal tax return as a commissioned rep call Sam Seidman, CA at (416) 398-1700 or contact us by filling in the form on the right hand side.
