Pay your employees a commission

Commission as employee's salary

1. Go to Payroll, then Employees (Take me there).
2. Select your employee.
3. From Pay types, select Start or Edit.
4. From the Pay type ▼ dropdown, choose Commission only.
5. Select Save.

Commission as additional pay

1. Go to Payroll, then Employees (Take me there).
2. Select your employee.
3. From Pay types, select Start or Edit.
4. In the Common pay types section, select Commission.
5. You can change the Commission name if you want. Select Edit ✎ to change it.
6. Select Save.

Step 1: Set up a commission pay item

1. Select Lists, then Payroll Item List.
2. Select the Payroll Item ▼ dropdown, then New.
3. Select Custom Setup, then Next.
4. Select Wage, then Next.
5. Select Commission, then Next.
6. Enter the item name, then Next.
7. Select the Expense account where you want to track the item, then Next.
8. Select Finish.

Step 2: Add the item to the employee’s profile

1. Go to Employees, and then select Employee Center.
2. Double-click the employee’s name.
3. Select Payroll Info. 
4. In the Earnings section, add the payroll item you created. 
5. Select OK.

If you want to control the tax on the commission, you can pay your employees a commission on a separate paycheck. Commissions added on a regular paycheck will be taxed the same as regular wages.

Note: As a state regulation, hours are still required to be entered for Washington, Oregon, and Rhode Island. Enter the hours worked in the REGULAR PAY HRS field.

Pay "commission only" paycheck

Note: Split direct deposit or direct deposit to 2 accounts is not applicable for commission only paychecks.

1. Go to Payroll, then Employees.
2. From the Run payroll ▼ dropdown, select Commission only.
3. Select the Edit ✎ next to Payroll Options, then select the following options::
   • Use supplemental tax rates: You can use supplemental rates and the system will determine which rate is used based on the YTD of the last paycheck.
   • Include retirement deductions if applicable: This will appear if an employee is set up for these.
   • Add pay period: Option to add pay period will show once you select Apply.
4. Select Apply. Note that Garnishments by default will be deducted.
5. Enter commission amount.
6. Select Preview payroll, then Submit payroll.
7. Select Finish payroll.

Pay commission along with the regular pay

As you run your scheduled payroll, enter an amount in the Commission field

You can pay your employees a “commission only” paycheck or along with their regular pay.

For Washington, Oregon, and Rhode Island, you'll need to pay the commission along with the regular pay so you can track the hours.

Note: If your commission rate is an amount times the quantity, enter the commission amount in the Rate field and enter 1 in the Quantity field. If it is a percentage of an amount or quantity, enter the percentage rate with a percent % symbol, then the amount in the Quantity field.