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Why Some Sales Compensation Plans Work and Many Don’t!

November 11, 2016 By David Johnston

When I was a lad, my parents drilled into me that “If a job is worth doing, it is worth doing well!”. This was usually followed by the cor...
Sales Compensation Risk Audit – It is Just Good Governance

August 22, 2016 By David Johnston

Sales Compensation has developed a much higher profile within organizations in recent years as external factors and internal fiscal restraint have...
Tips for Writing the Offer of Employment to Sales Candidates

June 10, 2010 By Canadian Professional Sales Association (CPSA)

After much effort, thought and evaluation, you have arrived at a decision about the candidate(s) that you want to hire. Now you must find out if the ...
Independent Sales Agent or Employee: Do you Know Your Status?

August 01, 2009 By Canadian Professional Sales Association (CPSA)

In any discussion of the legal arrangements between a company and a salesperson, it is important to determine whether or not the individual is an emp...
Independent Sales Representatives and the GST: To Tax or Not to Tax

March 01, 2010 By Charlie Eansor

The Canadian Professional Sales Association turned to Charlie Eansor, Executive Director of Commodity Tax at Ernst and Young who prepared this respon...
Independent Sales Representatives and the GST: Conditions for Zero-rating

March 01, 2010 By Charlie Eansor

Conditions for Zero-rating Expressed in language everyone understands, a sales representative service is zero-rated where it is provided to client ou...
Can I sue my California-based principal for damages if he has reduced my commission rate and then after when I agreed to the revised terms, he terminated the relationship? I am based in Quebec.

July 25, 2012 By The Canadian Professional Sales Association

Jerry Leth, Membership Director for the Manufacturer′s Agents National Association (MANA) in the United States advises foreign independent sale...
Should I sign a contract?

July 25, 2012 By The Canadian Professional Sales Association

We recommend that agents and sales representatives have a written contract with their principals and employers. No oral agreement provides as much pr...
I′ve been asked by a prospective employer to take an online assessment. Am I entitled to receive the results?

May 16, 2013 By The Canadian Professional Sales Association

The employer′s goal in the hiring process is to select those candidates who possess the knowledge, skills and abilities or other attributes and...
What are peak-day surcharges and why do the airlines charge them?

April 19, 2013 By The Canadian Professional Sales Association

Peak-day surcharges are one of the fastest-growing but least-noticed weapons in the domestic airlines′ arsenal of "ancillary revenue" sources. ...
Where can I determine which vehicle offers the best value for my money?

June 13, 2013 By The Canadian Professional Sales Association

So you’re looking to get a new car. Do you go with the roomy sport utility vehicle that will haul all your kids’ sports equipment, or do ...
Where can I find a lawyer who specializes in contract law?

June 02, 2014 By The Canadian Professional Sales Association

The Canadian Law List is a free online directory of law firms, lawyers, judges, government departments and related legal services. You can search for...
As a sales rep, can I include the number of kilometres I drive from my home office (my employer has signed a T2200 form) to my company headquarters as business mileage if I′m using a company-supplied vehicle?

April 19, 2013 By The Canadian Professional Sales Association

The answer is no. According to Revenue Canada, any location at or from which the employee regularly reports for work or performs the duties of employ...
How does the court determine the difference between an employee and independent contractor?

July 01, 2014 By The Canadian Professional Sales Association

The court would look at a number of factors to determine, as a whole, whether the employer has the level of control and direction over the individual...
Is there somewhere I can find and compare individual airlines’ official policies for carry-on bag numbers and size limits for domestic and international flights?

February 24, 2014 By The Canadian Professional Sales Association

Airlines continue to implement and change baggage fees, adding to the overall cost of air travel in their efforts to additional revenues. Keeping tra...
What are the meal and vehicle rates used to calculate travel expenses in Canada?

July 14, 2014 By The Canadian Professional Sales Association

Yearly rates will be available online in the following year. The rates for 2014 will be available on the Canada Revenue Agency’s website in 201...
Is there a “right” time to sign an employment contract if you are a sales person?

November 12, 2013 By The Canadian Professional Sales Association

Any valid contract, including an employment contract, requires the parties to give each other something in exchange for entering into the agreement. ...
If I leave my former employer, am I free to go join a competitor?

July 09, 2013 By The Canadian Professional Sales Association

Yes. Provided you have not signed an enforceable covenant not to compete after you depart from your former employer, the law will support your right ...
Can an employer terminate a salesperson once the employer discovers that the salesperson has lied about their expenses?

June 25, 2013 By The Canadian Professional Sales Association

The answer: it depends. Two decisions from Ontario are typical of how courts in other jurisdictions would deal with the question.   In Cosman v....
Can I take a product that has been customized for one client and "sell" or offer it to another client in the same industry?

October 12, 2013 By The Canadian Professional Sales Association

This is a really interesting and complicated issue as there are several factors and questions that need to be taken into consideration namely:  ...
Can I apply for Employment Insurance (EI) if I am self-employed?

May 04, 2012 By Canadian Professional Sales Association

Up until recently, only those who worked under a company could claim Employment Insurance (EI). The Government of Canada has recently amended this be...
What kinds of vehicle cost reimbursement programs exist, and which should I use for my sales team?

July 13, 2012 By The Canadian Professional Sales Association

There are three options for reimbursement programs:  1. Fixed rate only This option is administered as a flat monthly payment, but it&rsq...
Is there a central Canadian source for locating Request for Proposals (RFP) and formal tenders?

December 03, 2013 By The Canadian Professional Sales Association

There are several websites and online services that house Requests for Proposals (RFPs), bids, Request for and tender information depending upon the ...
As an independent sales rep paid on a commission basis, does my company have to pay me the HST on my commission rate?

November 02, 2012 By The Canadian Professional Sales Association

According to the Canada Revenue Sales Agency (CRA), as an independent sales representative (someone who is not an employee of the company) can charge...
Don’t Let Chance Control Your Finances

September 04, 2013 By The Canadian Professional Sales Association

Did you know...    Your Canadian government health care plan cannot extend to all medical situations outside of your province/territory of ...
Should Sales People be Using a Company Car or a Driver-Owned one?

November 16, 2012 By Julie Charles

Government Announces 2014 Automobile Deduction Limits and Expense Benefit Rates for Business Should your travellers get the keys to a company car or ...
How do I calculate the rate of pay when commission based employees take time off?

May 15, 2015 By The Canadian Professional Sales Association

Within the Employment Standards Act, it is stated that employees are entitled to take time off for annual vacation and to be paid vacation pay. There...
What are Temporary Total Benefits?

November 03, 2014 By The Canadian Professional Sales Association

There are two types of temporary disability benefits: temporary total benefits and temporary partial benefits. What Are Temporary Total Benefits? Tem...
Is there an act in place that protects sales professionals from discrimination in compensation?

August 11, 2014 By The Canadian Professional Sales Association

In Ontario, the Pay Equity Act is set in place to ensure that both men and women receive equal pay for performance in jobs that are of equal value. T...
Government Funding Available for CPSA’s Sales Training

March 09, 2015 By The Canadian Professional Sales Association

In 2014, the Government of Canada began an annual investment of over $192 million into a new employer-driven initiative, called the Canada Job Grant....
An employee who earns commission is leaving the company. How do we handle commission payments that are still outstanding?

April 06, 2015 By The Canadian Professional Sales Association

When starting a new position, you and the company in question will outline a detailed written agreement that summarizes the basis in which you will e...
What can I do if I was promised a letter of reference upon termination, but my employer never delivered?

August 08, 2013 By The Canadian Professional Sales Association

Employers cannot be forced to provide a letter of reference, much less a subjective and positive letter of reference.   However, particularly if...
Are there any guidelines for gift-giving to salespeople?

February 10, 2014 By The Canadian Professional Sales Association

Canada Customs and Revenue Agency has had a policy in place for a number of years outlining the requirements for employee gifts and their tax treatme...
Are sales commissions included in calculating Employment Insurance (EI) benefits?

December 04, 2012 By The Canadian Professional Sales Association

The short answer to this question is yes. When applying for Employment Insurance benefits, you need to supply a Record of Employment (ROE) from your ...
How do I prepare for a Revenue Canada audit of my business?

October 11, 2013 By The Canadian Professional Sales Association

For the record, the Income Tax Act requires each person who carries on a business to keep complete books and records. Your records should be up-to-da...
Where can I find an accountant that specializes in handling small businesses and expenses for sales personnel?

May 19, 2014 By The Canadian Professional Sales Association

The Certified General Accountants Association of Canada is the umbrella organization for all of the provincial associations. Each provincial associat...
What kind of tax breaks exist for small businesses?

March 23, 2012 By The Canadian Professional Sales Association

The government of has implemented several tax credits that businesses can potentially claim in order to help fuel ’s job and business growth....
What are the pros and cons to a lump sum payment or salary continuance upon employment termination?

April 21, 2014 By The Canadian Professional Sales Association

Both options have respective advantages and disadvantages that vary from person-to-person and should be fully discussed with a financial planner and ...
What is the difference between direct, indirect and non-financial compensation?

January 26, 2015 By The Canadian Professional Sales Association

By definition, compensation can be understood as total amount of the monetary and non-monetary reimbursement provided to an individual in return for ...
Do "commission-only" sales compensation plans work?

October 02, 2013 By The Canadian Professional Sales Association

Commission-only sales have been around for a long time and it is the primary method for compensating independent/manufacturer’s sales agents. C...
What is the difference between a recoverable and non-recoverable draw?

March 24, 2014 By The Canadian Professional Sales Association

A recoverable draw (also known as a draw against commission) is a set amount of money paid to the sales representative by the company at regular inte...
How do I answer the salary expectation question in an interview to my best advantage?

May 17, 2012 By The Canadian Professional Sales Association

When an interviewer asks you what your salary expectation is, it can be cause for some anxiety. If you say a value that’s too low, you may lose...
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