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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.
- Go to Payroll, then Employees.
- From the Run payroll ▼ dropdown, select Commission only.
- 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.
- Select Apply. Note that Garnishments by default will be deducted.
- Enter commission amount.
- Select Preview payroll, then Submit payroll.
- Select Finish payroll.
Pay commission along with the regular pay
As you run your scheduled payroll, enter an amount in the Commission field