Commission — Payroll Definition

What is Commission?

A commission can be based on sales, revenue, profit, units, milestones, or another contract formula. It may be paid alone or with base compensation and can interact with draws, chargebacks, minimum-wage rules, overtime regular-rate calculations, and payroll taxes. Review the governing agreement, worker classification, and current wage-and-tax rules before calculating or labeling it.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

Browse all payroll definitions or use the pay-statement codes guide.