How do we calculate vacation pay for our commission-only, outside sales staff?

You have several options.

• Time off without vacation pay.
  For example, you can have a policy where an outside salesperson can have two weeks off per year without pay other than commissions that are due to be paid during the vacation time off period.
• Set a fixed dollar amount to be paid during the vacation period.
  For example, you can offer your outside sales staff a set amount, such as $500 per week. Your employee would then receive $1,000 for their two-week vacation period, plus any earned commissions due during that period.