Sales commissions are an employee’s wages or an independent contractor’s wages if they work in a job which is commission based, this shows as a separate line item on their payslips.
Payroll categories for commission
Commissions are considered to be a type of ‘bonus’ and will fall under the same payroll category listed on your check stub. This can be either.
Our corporate pay stub can help you choose hourly, salary or commission income, simply choose the corporate format on our check stub generator!
Commissions per sale
Commissions on each sale made.
Commission per hour
Commission on hours worked.
Commission percentage
This is where you get a cut from the sale price.
Commission amount
This commissions is fixed price, not based on sales or hours worked.
Payroll is calculated for commissions before tax and deductions are taken out. It is then included with the employee’s regular wages for tax purposes. Commissions will be totaled with regular wages and Overtime as standard taxable earnings for each employee and will be included in their superannuation calculation as well.
How to add commission to your pay stubs
If you have commissions on your pay stubs you can add them through including them in the bonuses or commissions section, this will form a part of your gross pay.
Create your own check stub today and record your commissions!