Dealers and salespeople may want to consider the contents of this article with their tax advisors, as there may be deductions you are entitled to with some of the money you have to lay out for education and memberships.
For example, consider OMVIC’s new mandatory education expenses.
Continuing Professional Development (“CPD”) otherwise known by OMVIC as REVS, is now a mandatory requirement for all dealers and salespeople renewing their licences, unless they are “grandfathered” and have to take the Key Elements test instead.
As most everyone knows now, CPD, for dealers, is annual, and every other year for salespeople. Key Elements is a one-time renewal requirement for grandfathered dealers and salespeople.
Members can determine their requirements through the OMVIC Portal. OMVIC has also released guides on how to navigate the portal which can be found at this link: https://tinyurl.com/4h8meub4
The key differences between the courses are as follows:
OMVIC’s CPD
- 90 days to complete the course
- Format: virtual, on-demand, modules with an assessment after each course
- A minimum passing grade of 80% with unlimited attempts (you cannot “fail”)
- Approximately 4–6 hours to complete
- Cost: $99 (all-inclusive, not taxable)
MVDA Key Elements Course through Georgian College
- 12 weeks from registering to pass the test (must still pass before renewal)
- Format: a multiple-choice, open-book test (40 questions) with 60 minutes to complete.
- Can be done online or in-person at certain ServiceOntario locations
- A minimum passing grade of 80% is required, and only one attempt per registration
- Cost: $202.86 (all-inclusive, not taxable)
Can Salespeople Recover CPD Fees?
Ontario employees can generally deduct Continuing Professional Development (CPD) fees if they are required by their employer, not reimbursed, and if a Form T2200 is signed by the employer. For more details, consult with your tax advisors.
Key Conditions for Deducting CPD Fees:
- Employment Contract: The contract must require the employee to pay for the training or membership dues.
- Form T2200: A signed Declaration of Conditions of Employment (T2200) from the employer is necessary.
- No Reimbursement: The employee cannot have received a reimbursement or allowance for these
- Maintenance of Skills: The training should maintain, update, or upgrade existing skills, rather than being for personal interest or acquiring a new qualification.
Unfortunately, this deduction is generally not available for courses taken to obtain a new licence (such as the OMVIC Certification Course).
For Dealers
If an employer pays for training that is strictly for the employee’s benefit and not required for the job, it may be considered a taxable benefit on the T4.
Business tax, fees, licences and dues
You may be able to deduct some fees you incur to run your business. For example, annual dues or fees to keep your membership in a trade or commercial association (like the UCDA) or your operating registration, as with OMVIC, as well as subscriptions to publications, may be deductible.
Again, speak to your tax advisors. Members with questions about education please contact UCDA’s Education department at https://www.ucda.org/education/ucda-continuing-education/ and on tax guidance, UCDA Legal Department at (416) 231-2600 or 1-800-268-2598.