How Do I Pay My Employees Commission Only?

Background

You may have employees that are paid on commission.  Commission is commonly paid to salespeople, and can be based on a percentage of sales, or another incentive method, such as a flat dollar per unit.  For more information, see our blog article What Is Commission?

How to Pay Employees Commission Only in Patriot Software

In order to pay an employee commission only, with no other hourly or salary rate, we recommend you set up the employee with an Hourly Pay Type in the software, with an hourly rate of $1.00.  You won’t actually be using this hourly rate to pay them, but this will ensure that only commissions will be paid.

• In Step 1 of payroll, in the employee’s row, leave the regular and overtime hours fields blank.
• If you don’t have your “Commission” money type marked as frequently used, click “Show all Hours and Money Types” to display the “Commission” column.
• Enter the dollar amount of commissions for the employee.
• Proceed with the rest of your payroll as normal.

For more details on how to run a payroll, see Payroll Process Step 1 – Payroll Entry.