Commission Taxes

rurbanski

What deductions should there be on a sales commission, i.e. 401K, taxes, etc. We have had sales bonuses, but are now considering commissions instead. Any difference in deductions or taxes?

NaeNae55

Commissions are taxed the same as other income. 401k, life insurance, etc, Plan Documents should all state which income is applicable. In our case, we have a special clause that includes sales commissions for 401k, but it is excluded as far as life insurance goes. You need to look at your Plan Docs, but I would guess it works the same as sales bonuses.

ACU Frank

We handle ours the same as 'regular' earnings.

Cheryl S SPHR

We also handle them the same as regular wages.