How Do I Pay My Employees Commission Only?
Background
You may have employees that are paid on commission. Commission is commonly paid to salespeople, and can be based on a percentage of sales, or another incentive method, such as a flat dollar per unit. For more information, see our blog article What Is Commission?
- Set up employee with $0 hourly or salary rate. You won’t actually be using this to pay them, but this will ensure that only commissions will be paid.
- Set up Commission money type and mark the hour type as “frequency used” if you do not already have this set up in the software. Read our help article, ” How to Set Up Money Types, ” for more information.
- On Step One of payroll, enter the dollar amount in the “Commission” money type box.
- You can indicate this commission payment should be taxed at the supplemental rate if needed by checking the Supplemental Rate box.
- Proceed with payroll as usual. You can pay other employees on this payroll, if you want, or just pay this employee.
For more details on how to run a payroll, see Payroll Process Step 1 – Payroll Entry.
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