Validating your Agents 1099/T4A's against their YTD totals
Depending on your brokerage’s reporting setup, there are different methods used to calculate and report agent income. You can validate an agent’s Year-to-Date (YTD) totals by comparing the totals shown on the agent’s profile against their T4A or 1099 tax form.
For more details on available income reporting options, please refer to the related this article.
Reporting Gross Commission Income (GCI)
Deductions do NOT reduce GCI
The formula used to calculate Gross Commission Income (GCI) is:
Commission Net + Other Income Net + Mentor Fee Net
Please note:
- Deductions do not reduce the reported GCI amount.
- Commission Adjustments and Deduction Adjustments may also impact the final amounts reported on the agent’s T4A or 1099.
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Other Income is only reported on T4A or 1099NEC forms based on your brokerage’s tax settings. Refer to this article for more information.
For Canadian and U.S. clients, provincial or state taxes are not included on tax forms, even when taxes are applied on transactions.
Reporting Net Commission Income (NCI)
Deductions DO reduce GCI
The formula used to calculate Net Commission Income (NCI) is:
Commission Net + Other Income Net + Mentor Fee Net
LESS Deduction Net
Please note:
- Only deductions configured to reduce agent income will impact the reported amount.
- Commission Adjustments and Deduction Adjustments will also factor into the final T4A or 1099 totals.
- Depending on your deduction settings, the amount reported may differ from the agent’s raw commission totals.
Example, the agent's split fees is the only fee set to reduce his Commissions, so the formula is as follows:
Net Commission Income (NCI)
$7,500 (Commission Net) + $0 (Other Income Net) + $200 (Mentor Fee Income Net) − $500 (Split Fee Amount) = $7,200
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