Commission Taxes

rurbanski · August 2011

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 · August 2011

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 · August 2011

We handle ours the same as 'regular' earnings.

Cheryl S SPHR · August 2011

We also handle them the same as regular wages.

Commission Taxes

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