Commission
Compensation is generally considered a commission if it is paid to an employee for services rendered in the sale of your property or services and is based proportionally on the amount or value of those sales.1 The employee receiving the commission must be involved principally in selling the goods or services on which the commission is measured.
Commission wage compensation plans can present issues for employers. Each commission plan is unique and must be interpreted and applied to establish the parties' rights and liabilities.
Generally, to be considered “commission wages”:
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