Paying Commissions from payroll

Debbiec4
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Debbiec4

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Paying Commissions from payroll

Can someone please tell me how to set up and go about paying a comission only based real estate salesperson?

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Debbiec4
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Debbiec4

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How do I load a commission based sales person and then set up payroll for them.

I am a real estate company, wanting to pay a commission based salesperson, but also adding the GST component.

So they get their portion of the GST and then they have to pay for it.  

I am horribly confused about how MYOB handles this?  And what I have to do?

Ultimate Partner jenniek
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Re: Paying Commissions from payroll

Hi @Debbiec4

You need to create a paycode called Commissions - this should be a gross earnings Paycode type.

Tick the box "allow this rate to be modified"

The issue will be ore of a tax nature - how often do you pay this commission? - do you pay them a retainer?

Normally commissions are taxed at a lump sum because these earnings are over and above their normal earnings (which could be the retainer) - you would then taxoverride this amount and tax it at their secondary tax amount (which code depends on how much they earn over a year) If you are only paying commission - and paying this monthly say - then you would set this person to be paid monthy and the system will calculate the tax on earnings for the month.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Debbiec4
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Debbiec4

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Re: Paying Commissions from payroll

Thank you.  the commissions in real estate are paid per sale.  I need to pay their tax, they are tax code WT, but they also need to pay their portion of the GST.

When I try to set them up in the system, it only allows me to set up salary or wage earner... this is where I am coming unstuck.

Ultimate Partner jenniek
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Re: Paying Commissions from payroll

Hi @Debbiec4

Put their tax code as WT and add the GST paycode to their pay defaults. You can then leave the leave details tab blank. (ie no hours per day/days per week)

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Ultimate Partner jenniek
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Re: Paying Commissions from payroll

Hi @Debbiec4

How often do you pay them - you will need to think of the tax implications

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Debbiec4
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Debbiec4

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Re: Paying Commissions from payroll

Hi Jennie,

Thank you for your help.  They get paid every time they make a sale.

Ultimate Partner jenniek
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Re: Paying Commissions from payroll

Hi @Debbiec4

You mentioned they are on withholding tax, so the tax would be a flat rate anyway.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Debbiec4
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Debbiec4

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Re: Paying Commissions from payroll

Thank you.

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