Validating your Agents 1099/T4A's against their YTD totals

Validating your Agents 1099/T4A's against their YTD totals

Validating your agent's ytd totals for reporting

Depending on how you're reporting, see this article for more info on the various types of Income reporting available, you can validate your agent's income by comparing your Agent's profile YTD totals against their tax return form.  

Reporting Gross Commission Income - Deductions do not net out GCI

The formula we use to report GCI is as follows: Commission Net + Other Income Net + Mentor Fee Net.  Please note, the sum of all these will only be reported on T4A's & 1099NEC depending on the Other's income settings you chose when setting your brokerage's tax settings, refer to this article for more information.

Tax applicable clients - Canadian and US client, where state taxes are applicable, state or provincial taxes are NOT reported on your respective tax forms.

Reporting NET Commission Income - Deductions do net out GCI

The formula we use to report NCI is as follows: Commission Net + Other Income Net + Mentor Fee Net LESS Deduction Net
Depending on what deductions you've set to reduce your Agent's GCI, the amount you will be comparing to will differ.  If you've set some of your deductions to reduce your Agent's GCI, then you will have to consider those deductions you've set to reduce income into the formula above.  Example below, the agent's split fees is the only fee set to reduce his Commissions, so the formula is as follows:
1 Commission Net of $7,500 + 2 Other Income Net of $0 + 3 Mentor Fee Income Net $200 - 4 Split Fee Amount $500= $7,200

If Mentor Fee income was not selected in your Brokerage settings, then omit 3 from the formula and $7,000 would be reported.

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