Reply To: 40% tax on commission?

[Precise Tax Solutions]

Up

0

::

The tax payable on all income is only calculated at the end of year, despite how much is withheld each month.

If your employer has withheld too much (via the 40%/month) you’ll get a tax refund at year end.

Becoming a “contractor” and invoicing your current employer brings a whole bunch of other issues to the table (e.g. insurances, PSI etc.) so it’s not an easy answer either.

A half hour chat with an accountant about your specific situation would be your best bet, should cost less than a couple hundred dollars and is also tax deductible.

Cheers