Keyword Analysis & Research: commission pay

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Frequently Asked Questions

What is Commission pay and how does it work?

With a commission pay structure, a company pays employees based on production and not on the amount of hours worked. With a salary structure, employees exchange a certain amount of time for a fixed amount of money. When a company uses commission, the employees receive a percentage of the amount of revenue they bring in.

What does Commission pay mean?

A commission is a sum of money that is paid to an employee upon completion of a task, usually the task of selling a certain amount of goods or services. It can be paid as a percentage of the sale or as a flat dollar amount based on sales volume.

What are the laws on paying commission?

Commission-based pay laws. Although commissions are common with certain positions, they are never required under the Fair Labor Standards Act (FLSA). But, the FLSA does have commission and overtime pay laws. You are required to provide overtime pay to nonexempt employees.

What are commission paid jobs?

Companies pay commissions to employees or contractors who facilitate or complete financial transactions to sell services or products. Commissions are predetermined fixed rates of compensation, such as a percentage of sales, based on the revenue generated. Some jobs are commission-only, while others pay a base salary plus commission.


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