Home Insert Draw Page Layout Formulas Data Review View Tell me Share Com X Arial 10 AA 1 Wapeut Ergen Accounting $% % Pa B TV 32 Conditional Fun NI Pogle Styles Date For Sart Rd SEE 17 D o X 2 AA AB AD wwwy Weeky ry LAM 12 38 4 eTextbook Pare Accounting 2020 Textbook Payroll Accounting 2030 som LOS See Example 2-25 on page 22 Maria Cohen is employed as a salesperson in the men's department of Lee's Fashions. In addition to her weekly base salary of S400 (35-hour weekl, Cohen is paid a commission of 1% on har total net sales for the week flotal gross sales less any customer retums). During the past week, to promote the sale of its fine cashmere Sweaters, Lee's agreed to pay Cohen an additional PM (push money) of of the total net sales of cashmere swators. Cohen's weekly sales toily is given below Compute Cohen's total wocky camins, showing her (a) weakly base salary. (b) commission, PM, and (c) total wocky aaminos ye - 4 Sempleyado Orgy Security Card Jump to page 24 eTextbook: Parol Accounting 2020 Textbook Payroll Accounting 2030 QAT WE Surch MATER Special incentives Pete Nondiscretionary Bonuses Commissions The entire remuneration, or at least part of the remuneration of certain employees may be on a commission basis. A commission is a stated percentage of revenue paid to an employee who transacts a piece of business or portorms a service. Thus, a salesperson working in a certain territory may have a fixed salary each year plus a bonus for sales in excess of a certain amount Example 2-25 Kate Kine receives an annual $35.000 base salary for working aan territory. Asas quota of $800,000 has been set for that territory for the current year. Kline will receive a 8 percent commission on alles in excess of $800.000. For the current year, the sales in the territory are $1.000.000. The bonus paldine would be Kine's total amings for the year would be: Cameroon There are numerous variations of the commission method of remuneration. Some businesses offer special promiums or bonuses for selling certain merchandise. For example, to help move merchandise in a ready-to-wear departmenta department store wil frequently pay a premium or a bonus to the salesperson who sels specific toms of merchandise Commissions are considered to be payments for hours world and must be included in determining the regular hourly rate. This applies regardless of whether the commission is the sole source of the employee's compensation or is paid in addition to a salary or hourly rate. It does not matter whether the commission earnings are computed daily, weekly, monthly, or at some other Interval. However, in the case of outside salespeople who are exampt from the FLSA, commissions paid to thom do not have to meet the minimum wage criteria. Commissions are treated as straight-time pay, To calculate overtime, the weekly commission is divided by the total hours worked. This is the employee's regular rate of pay. The overtime pay would be one-half the regular one of pay for all hours worked over on the workwool Jump to Pare Special incentive Nondiscretionary Bonuses Home Insert Draw Page Layout Formulas Data Review View Tell me Share Com X Arial 10 AA 1 Wapeut Ergen Accounting $% % Pa B TV 32 Conditional Fun NI Pogle Styles Date For Sart Rd SEE 17 D o X 2 AA AB AD wwwy Weeky ry LAM 12 38 4 eTextbook Pare Accounting 2020 Textbook Payroll Accounting 2030 som LOS See Example 2-25 on page 22 Maria Cohen is employed as a salesperson in the men's department of Lee's Fashions. In addition to her weekly base salary of S400 (35-hour weekl, Cohen is paid a commission of 1% on har total net sales for the week flotal gross sales less any customer retums). During the past week, to promote the sale of its fine cashmere Sweaters, Lee's agreed to pay Cohen an additional PM (push money) of of the total net sales of cashmere swators. Cohen's weekly sales toily is given below Compute Cohen's total wocky camins, showing her (a) weakly base salary. (b) commission, PM, and (c) total wocky aaminos ye - 4 Sempleyado Orgy Security Card Jump to page 24 eTextbook: Parol Accounting 2020 Textbook Payroll Accounting 2030 QAT WE Surch MATER Special incentives Pete Nondiscretionary Bonuses Commissions The entire remuneration, or at least part of the remuneration of certain employees may be on a commission basis. A commission is a stated percentage of revenue paid to an employee who transacts a piece of business or portorms a service. Thus, a salesperson working in a certain territory may have a fixed salary each year plus a bonus for sales in excess of a certain amount Example 2-25 Kate Kine receives an annual $35.000 base salary for working aan territory. Asas quota of $800,000 has been set for that territory for the current year. Kline will receive a 8 percent commission on alles in excess of $800.000. For the current year, the sales in the territory are $1.000.000. The bonus paldine would be Kine's total amings for the year would be: Cameroon There are numerous variations of the commission method of remuneration. Some businesses offer special promiums or bonuses for selling certain merchandise. For example, to help move merchandise in a ready-to-wear departmenta department store wil frequently pay a premium or a bonus to the salesperson who sels specific toms of merchandise Commissions are considered to be payments for hours world and must be included in determining the regular hourly rate. This applies regardless of whether the commission is the sole source of the employee's compensation or is paid in addition to a salary or hourly rate. It does not matter whether the commission earnings are computed daily, weekly, monthly, or at some other Interval. However, in the case of outside salespeople who are exampt from the FLSA, commissions paid to thom do not have to meet the minimum wage criteria. Commissions are treated as straight-time pay, To calculate overtime, the weekly commission is divided by the total hours worked. This is the employee's regular rate of pay. The overtime pay would be one-half the regular one of pay for all hours worked over on the workwool Jump to Pare Special incentive Nondiscretionary Bonuses