Insurance Brokers
Bookkeeping and tax support designed for Canadian insurance brokers
Commission income from multiple carriers, renewal schedules, licensing across several lines, and ongoing professional costs create a structure that requires organized tracking and informed tax planning.
Teplov CPA provides bookkeeping, tax compliance, and tax planning for insurance brokers across Canada, whether you operate as a sole proprietor or through a corporation.
Common Situations We See
Insurance brokers typically contact us in one of the following situations:
– You receive commissions from multiple carriers or through a managing general agent.
– Renewal commissions and new business commissions arrive on different schedules.-
– Licensing fees cover multiple lines and possibly multiple provinces.
– E&O insurance represents a significant annual expense.
– You use your vehicle regularly for client meetings but do not maintain a CRA-compliant mileage log.
– Your income has grown and the incorporation question has become relevant.
– Tax season feels disorganized rather than structured.
Our role is to provide clarity and structure based on your income level, province, and long-term financial objectives.
Our Services for Insurance Brokers
Monthly Bookkeeping
Organized records throughout the year support accurate reporting and better decision-making.
We provide:
– Monthly transaction categorization
– Bank and credit card reconciliations
– Commission tracking across carriers and MGAs
– Expense categorization and monitoring
– Financial statements including profit and loss and balance sheet
– Year-end file preparation to support tax filing
Bookkeeping is delivered using Xero or QuickBooks Online, configured specifically for commission-based income.
Tax Compliance
We prepare and file returns accurately and on time, with a CPA who understands insurance commission structures.
Services include:
– T1 personal income tax returns
– T2125 self-employment income reporting
– T2 corporate tax returns where applicable
– Quarterly installment calculations
– CRA correspondence support related to prepared filings
Insurance commissions are generally exempt financial services under the Excise Tax Act. As a result, commissions earned on insurance arrangements are typically not subject to GST/HST and do not count toward the $30,000 registration threshold. If you earn consulting fees, referral income structured differently, or other non-exempt income, GST/HST obligations may arise and should be reviewed.
Tax Planning for Insurance Brokers
Tax planning focuses on income variability, expense structure, and long-term strategy.
Incorporation Analysis
Incorporation may be appropriate if:
– Net commission income is consistently strong
– You do not require all earnings personally in the same year
– You wish to defer tax on retained earnings
We evaluate your income history, projected earnings, province of residence, and personal cash flow needs. You receive a clear comparison of remaining a sole proprietor versus incorporating.
Commission Reconciliation and Timing
Renewal commissions and new business commissions may arrive on different schedules. Accurate bookkeeping ensures income is recorded correctly and supports installment planning.
Vehicle and Professional Expense Strategy
Vehicle use for client meetings and industry events may be deductible when supported by a compliant mileage log. Licensing fees, E&O insurance, professional development, association dues, and CRM subscriptions are deductible when properly documented and categorized.
Installment Planning
Commission income can create unpredictable tax liability. If you owed more than $3,000 in a prior year, installment payments may apply. We calculate installment obligations in advance to reduce interest exposure.
A few things that come up often
Generally no. Arranging insurance qualifies as an exempt financial service, so commissions earned on that activity are not subject to GST/HST. If you provide services outside that exemption, the analysis changes.
Renewal and new business commissions are both reported as self-employment income on your T2125. The key issue is timing and reconciliation to ensure financial statements and installment calculations are accurate.
The MGA relationship affects how commissions are paid and documented, not how they are reported for tax purposes. Proper reconciliation of MGA statements is important to ensure accuracy.
2025 Tax Return
The filing deadline for self-employed Canadians is June 15, 2026. Any balance owing is still due April 30, 2026.
We are currently accepting new insurance broker clients for the 2025 tax year.
Get startd
Email contact@teplov.ca or use the contact form with a brief description of your situation, including:
– Approximate annual income
– Whether you are incorporated
– Whether you earn income beyond brokerage commissions
– What you are trying to resolve
We typically respond within one business day.