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Finance & Accounting
Do commissions from a sale get included in payroll taxes?
One of our employees works for commission. When I put them through as a payroll item, taxes are withdrawn and I have to pay twice as much on Social Security and Medicare.

Asked by miechelle
Posted: Wednesday, September 12, 2007  |  Found in Finance & Accounting


More answers by Pam Newman
Answer by Pam Newman
Yes -- if it is for an employee, then taxes need to be withheld on ANY compensation.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.


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