Need Help! Having troubles calculating your tax return for employment expenses?
This is about hiring employees who are on salary, commissions which require expenses as part of employment conditions.
As an employer in the business of selling or transporting goods and/or services that hire employees on salary/ commissions or truck drivers.
Are you a licensed real estate agent, sales person on a salary/commission or truck driver?
You can deduct out of pocket travel expenses if you are required to travel to earn income some out of pocket expenses are vehicle, travel or meal.
You will need to keep all receipts for these expenses.
Your employer will need to complete the Employee Expenses form.
You can also deduct all or a portion of your cell, home, auto, computer and internet.
On a salary claim out-of-pocket expenses from a list of allowable expenses to earn income.
- Meals, tips, hotel are away for at least 12 hours or in another metro area (restriction 50%)*
- Commissions earned limited** to promotional, entertaining*, travel, auto, home office
- Commissions work away from workplace sells – claim travel expense limited** – no travel allowance allowed
- Travel Expenses ONLY -exceed commissions these expenses are not limited to commission can be used to reduce other income
The Employee Expense form is a questionnaire to be completed by your employer, so you can deduct these expenses on your tax returns.
Are you a long-haul truck driver?
You are working for a trucking company for transporting goods/services for short or long-hauls. A log book of all trips taken is used to determine an allowable expenses,
- Meals for truck drivers (restricted ***80%) trips are more than 8 hours*
- Lodging and Shower (sleeper in cab)
- Long-haul means – away from main terminal more than 24 hours
You qualify for more expenses if the truck weight is more than 11,788 kg – more than 160km each trip.
***Other transporting industries have employee expenses are;
- Taxi Drives
***Not included in this article, more information contact Ina .
More about employee expenses
As an employer who hires sales persons on salary and/or commissions you are require to fill-out an Employee Expense Form. This is different from Travel Expenses you reimburse directly to the employee. When you complete this form an employee is allowed *restricted expenses to reduce taxes payable.
For further information, contact Ina for a free 30 minutes consultation.