Here's how to pay commission alongside regular earnings, or separately in an off-cycle run.
Pay Commission in Regular Pay Run
To pay a commission in a regularly scheduled pay run:
- In the Payroll app, click Pay Runs in the top menu bar.
- Choose the name of the upcoming pay run in the Drafts list.
- Click Edit to open an employee's paystub for the run.
- Click +Add New Earning.
- Select "Commission" from the list of earnings types.
- Enter the amount.
- Click Save.
Pay Commission in Off-Cycle Run
To pay a commission outside of an employee's normal pay schedule:
- Choose Pay Runs in the Payroll app.
- Click Add Off-Cycle Run in the upper right corner of the Pay Runs page.
- Select between creating a new run, or cloning an existing one.
- Give the payroll a descriptive name, e.g., Huge Sales Close Commission, and a pay date.
- Use the toggle for Third Party Sick Pay, if applicable.
- Choose from the following selections:
- Include regular deductions and contributions
- "Time-Based Tax Rate" and the employee's normal pay schedule to calculate taxes based on the employee's Federal and State filing status and allowances
- (if this is not checked, it will default to state specific tax rates and the fixed federal rate)
- Whether to display a work period for the run.
- Check the box next to the name to include that person on the run.
- Click Edit for the selected individual.
- Click +Add New Earnings.
- Select "Commission" from the list of earnings types, then click Add.
- Enter the amount of the commission.
- If necessary, change the employee's payment method (e.g., from Direct Deposit to Check) at the top of their paystub.
- When finished click Save, then Close to return to the Pay Run page.
- Now, submit and approve pay run as you normally would.