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Zonker
March 21, 2019

Comissions

  • March 21, 2019
  • 1 reply
  • 0 views

Can't believe this product does not have a calculator for commissions.  Even worse, the work around, Acc Settings, Advance, "CATEGORIES" suggested does not exist.  

 

Any that can help track sales and pay commissions would be most appreciated

      1 reply

      Regina_Lend_A_Hand_Accounting
      Regina_Lend_A_Hand_Accounting
      March 22, 2019

      Commissions are typically calculated outside of accounting software in an Excel template. Go to Account and Settings, Advanced, Categories, and turn on Track Classes. QBO will not automatically calculate sales commissions.

       

      Setting up classes in QBO to track commissions due by sales item is a good idea. As you will then be able to run an report by class to import to Excel and then drop-in a formula to calculate the commissions due.

       

      Commission is a form of compensation that's typically based on an employee's sales performance or completion of a task. Commission can be paid in addition to a salary or instead of a salary. Hourly employees who also receive a commission must be paid at least the minimum wage for hourly workers.
       
      You can add multiple types of commission pay and give each one a unique name. The custom pay types will then be available when you set up your other employees. It is however considered regular wages for tax purposes, and it is mapped as such, the mapping places the commission wages in the right box on the tax form. You can also Go to Gear> Payroll Settings>Accounting and click "I use different accounts for different wages", where you can allocate Commission to another expense account such as "Commission Expense"
       
      Taxability:

      FIT SS Med FUTA

      TaxableTaxableTaxableTaxable
       
      How it's reported on federal forms:

      941 940 W-2

      Boxes 2, 5a, 5cRegular WagesRegular Wages
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