Commission income is a form of payment that an employee receives in exchange for making a sale. It can be part of an employees salary or a separate form of income that is paid on a different schedule. Commission income is calculated based on a percentage of total sales, meaning the more products or services an employee can sell, the higher the amount they receive. There are different types of commission income, including straight commission, residual income, salary plus commission, and variable commission.

Here are some key points to keep in mind about commission income:

• Commission income is a payment that an employee receives based on a sale.
• It can be part of an employees salary or a separate form of income that is paid on a different schedule.
• Commission income is calculated based on a percentage of total sales.
• There are different types of commission income, including straight commission, residual income, salary plus commission, and variable commission.
• Commission-based pay can be a motivator for highly talented professionals in sales and marketing.
• Commission-based pay can also affect the dynamics of a team.
• Employers are responsible for withholding taxes on commission income.

In summary, commission income is a form of payment that an employee receives in exchange for making a sale. It can be part of an employees salary or a separate form of income, and it is calculated based on a percentage of total sales. There are different types of commission income, and employers are responsible for withholding taxes on commission income.