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Calculation of C/QPP contributions on commissions paid regularly with salary or commission only is done:

A) Using a separate formula for commissions
B) Including commissions in regular salary calculations
C) Excluding commissions from C/QPP calculations
D) Calculating C/QPP only on commission amounts

1 Answer

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Final answer:

Commissions are included in regular salary calculations for the purposes of calculating Canada Pension Plan contributions. There is no separate formula for commission payments; they are treated like any other wage or salary.

Step-by-step explanation:

When calculating Canada Pension Plan (C/QPP) contributions on earnings that include commissions, the correct approach is to include commissions in regular salary calculations. This means that for commissions paid regularly with salary or even for commission-only earners, all amounts are subject to C/QPP contributions just as any other salary or wage would be. No separate formula is used specifically for commission payments when determining the contribution amounts.

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