Question

The purpose of the TD1X (Statement of Commission Income and Expenses for Payroll Tax Deductions)

A) Calculate statutory deductions on commissions
B) Report commission income and expenses
C) Calculate income tax only
D) Provide commission details to the employer

Answer 1

The purpose of the TD1X form is to report commission income and expenses for payroll tax deductions.

Step-by-step explanation:

The purpose of the TD1X (Statement of Commission Income and Expenses for Payroll Tax Deductions) is to report commission income and expenses for the purpose of payroll tax deductions.

When an employee earns commission income, the employer needs to calculate the tax deductions on these commissions using the TD1X form. This form helps the employer accurately withhold the appropriate amount of taxes from the employee's commissions.

Therefore, option B) report commission income and expenses is the correct answer.