How it works
Commission = sales × commission rate. Add your base salary and any bonus for hitting the sales target to get your gross pay.
Example
$50,000 in sales at 5% is a $2,500 commission. With a $2,500 base salary, your gross pay is $5,000.
Frequently asked questions
Is commission taxed differently?
Commissions are usually treated as supplemental wages, so withholding may differ, but the tax at the end of the year is the same as on salary.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.