Who We Serve
Insurance Brokers
Bookkeeping and tax support designed for Canadian insurance brokers and agents. Commission income across multiple carriers, renewal books, licensing obligations, and variable income patterns create a tax picture that requires more than a generalist approach. We work with insurance professionals operating as sole proprietors and corporations.
Common situations we see
- Receiving commissions from multiple carriers or managing general agents
- Renewal and new business commissions arriving on different schedules
- Licensing fees across multiple product lines and provinces
- Substantial E&O insurance premiums and professional expenses
- Vehicle use for client meetings without a compliant mileage log
- Growing practice prompting incorporation questions without a clear framework
We provide structure, clarity, and professional judgment based on your carrier mix, income pattern, and planning goals.
Monthly Bookkeeping
Organized books every month with commission income tracked by carrier and expenses documented before tax season.
- Monthly transaction categorization for all bank and credit accounts
- Bank and credit card reconciliations
- Commission tracking by carrier and by product line
- Expense monitoring throughout the year
- Monthly financial statements
- Year-end file preparation for tax filing
- Setup and maintenance in Xero or QuickBooks Online
Tax Compliance
Returns prepared and filed by a CPA who understands how multi-carrier commission income is structured, reported, and reconciled.
- T1 personal income tax return with T2125 self-employment schedule
- Multi-source commission income reconciled against T4As and carrier statements
- Renewal commission tracking and timing adjustments
- T2 corporate tax return if incorporated
- Instalment calculations based on current-year income
- CRA correspondence support
Insurance commissions are generally exempt financial services under the Excise Tax Act and are not subject to GST/HST. Certain advisory or administrative fees may be treated differently depending on their structure.
Tax Planning
Planning for insurance brokers accounts for renewal book growth, carrier concentration, and the timing differences between new and renewal income.
- Incorporation analysis evaluating income level, cash flow needs, and administrative costs
- Commission timing reconciliation to reduce year-end surprises
- Vehicle and professional expense strategy with CRA-compliant documentation
- Instalment planning for variable multi-carrier income
Common questions
- Are insurance commissions subject to GST/HST?
- Arranging insurance is generally an exempt financial service under the Excise Tax Act. As a result, insurance commissions are typically not subject to GST/HST. Some specific advisory fees may be taxable depending on how they are structured.
- How do renewal commissions get reported?
- Both renewal and new business commissions are reported on T2125. Timing and reconciliation between your commission statements and T4As matter for accuracy. Multi-carrier income requires tracking each source separately.
- Does the structure change if I work through an MGA?
- The reporting structure is similar. Income flows through the MGA, and documentation and reconciliation practices remain important. Corporate structures within the MGA relationship add additional complexity that we can assess.
Work with us
Licensed insurance broker or agent with commission income across multiple carriers? Use the contact form to describe your situation.
Contact Teplov CPA