What Is Commission?

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 paystub code: COMM

Where You'll See Commission

Related Terms

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