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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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How are commissions paid to a salaried employee and are payroll

Customer Question

How are commissions paid to a salaried employee and are payroll taxes withheld?
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
There are withholding options - and it is up to the employer which to implement - but whatever they choose should be used consistently for all employees.First - and that option is used by most employers - federal income taxes are withheld at flat 25% rate regardless what election was made on W4 form.Second - Commissions are added to regular wages for the same pay period - and withholding is based on TOTAL amount and W4 elections.
Expert:  Lev replied 7 months ago.
.Let me know if you need help with estimations.Please be aware that withholding is not actual tax liability which is calculated on the tax return.Withholding may be more or less than actual tax liability.If withholding is larger - you might be entitled for a refund on the tax return..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.