There are specific rules that apply to issuing and completing the Record of Employment (ROE) for commission employees who are paid by commission only.

Please build your answer based on following study book text:

Block 6 – Pay period type The pay period type for commission employees is always reported as weekly on the ROE, regardless of the actual pay period type used.

Block 12 – Final pay period ending date The final pay period ending date should be the Saturday of the week in which the last day for which paid, reported in Block 11, occurs.

Block 15B Insurable Earnings
As a commission employee’s earnings may fluctuate over the period of time to be reported on the Record of Employment, an average weekly earnings amount must be determined to complete Block 15B and 15C. The employee’s average weekly earnings are determined as follows:
· take the employee’s total insurable earnings (salary, bonus, commissions, excluding any insurable monies paid upon termination) paid within the last 52 weeks or since the date of employment, whichever is shorter
· divide the insurable earnings by the number of insurable weeks (52 or length of employment, if shorter)
· round the above amount to the nearest penny – this is the average weekly earnings

· multiply the average weekly earnings by 27, or less if the period of employment was shorter
· add any insurable amounts the employee received because of the termination that are reported in Block 17 – this is the total insurable earnings entered in Block 15B.

Note: Where commissions are paid with salary on a regular pay period basis, the insurable hours and earnings are not averaged; the regular Record of Employment rules are followed.

Block 15C Insurable Earnings by Pay Period

For commission salespeople, Block 15C is only completed when the ROE is issued electronically. Use the average weekly earnings amount calculated for Block 15B to complete all the applicable pay period fields in Block 15C, except for P.P. 1 (the final pay period). In the P.P. 1 field, add any insurable amounts the employee received because of the termination to the average weekly earnings amount. As these are sample paper Records of Employment there is no information provided in the Block 1 (serial number). Brownstone Manufacturing is issuing a paper ROE and therefore not providing the equivalent of 53 weeks of pay period information.

Question:

There are specific rules that apply to issuing and completing the Record of Employment (ROE) for commission employees who are paid by commission only. In your own words, explain how to complete Blocks 6, 12, 15B and 15C on a commission-only paid employee’s ROE.

Solutions

Expert Solution

There are specific rules that apply to issuing and completing the Record of Employment (ROE) for commission employees who are paid by commission only.

I am taking example of a real estate agent to explain how to complete Blocks 6, 12, 15B and 15C on a commission-only paid employee’s ROE.

A real estate agent is someone who holds a licence issued by a provincial authority to work in the sale or purchase of real estate on a commission basis. So this example perfectly fits the requirement of the question asked.

Block 6, Pay Period Type: For real estate agents, enter “weekly” as the pay period type.

Block 12, Final pay period ending date: For real estate agents, enter in Block 12 the date of the Saturday of the week in which the date in Block 11 falls.

Block 15B, Total Insurable Earnings: To determine the amount to enter in Block 15B for real estate agents, you have to calculate the average weekly earnings the employee received. To do so, use the weekly averaging formula. Once you calculate the average weekly earnings, multiply that amount by 27 (or less if the period of employment is shorter than 27 weeks). Finally, add any insurable amounts the employee received because of the separation. This is the employee's total insurable earnings (refer Block 17, Separation payments for details).

Block 15C, Insurable earnings by pay period: For real estate agents, you only need to complete Block 15C if you are issuing an ROE electronically. Use the average weekly earnings amount you calculated for Block 15B to complete all the applicable pay period fields in Block 15C, except for P.P. 1 (the final pay period). In the P.P. 1 field, add any insurable amounts the employee received because of the separation to the average weekly earnings amount.

jeff jeffy answered 1 year ago

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