Commission — Payroll Definition
Earnings based on a percentage of sales you generate, common in sales roles.
Earnings based on a percentage of sales you generate, common in sales roles.
A commission is a form of variable pay calculated as a percentage of sales revenue or profit. Common structures include straight commission (100% commission, no base salary), base + commission, tiered commission (higher percentage at higher sales levels), and draw against commission. Commissions are subject to all standard payroll taxes including FICA and income tax withholding.
Common pay stub code: COMM