BLUE SALES MANAGERS!!!!!!
Do you know whats about to happen to your pay? Here it is:
40% of your base salary will be "moved" to become "at-risk true-up" commission.
Example: Lets say your base salary is $40,000. Cingular is going to take 40% ($16,000) and divide it by 12 ($1,333). Your new base salary will become $24,000, and the $1,333 will be another type of monthly commission known as "true-up", however only if your store hits 100% of its revenue goals.
So, if your store hits 80% of its revenue quota, your "true-up" payment will then be $1,066, which will then be taxed at a higher rate since it will be categorized as commissions.
Another great "Thank You Cingular employees!" from this wonderful company.
Bound to take place shortly after the New Yea...
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40% of your base salary will be "moved" to become "at-risk true-up" commission.
Example: Lets say your base salary is $40,000. Cingular is going to take 40% ($16,000) and divide it by 12 ($1,333). Your new base salary will become $24,000, and the $1,333 will be another type of monthly commission known as "true-up", however only if your store hits 100% of its revenue goals.
So, if your store hits 80% of its revenue quota, your "true-up" payment will then be $1,066, which will then be taxed at a higher rate since it will be categorized as commissions.
Another great "Thank You Cingular employees!" from this wonderful company.
Bound to take place shortly after the New Yea...
(continues)
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BluetoOrange22 said:...
Do you know whats about to happen to your pay? Here it is:
40% of your base salary will be "moved" to become "at-risk true-up" commission.
Example: Lets say your base salary is $40,000. Cingular is going to take 40% ($16,000) and divide it by 12 ($1,333). Your new base salary will become $24,000, and the $1,333 will be another type of monthly commission known as "true-up", however only if your store hits 100% of its revenue goals.
So, if your store hits 80% of its revenue quota, your "true-up" payment will then be $1,066, which will then be taxed at a higher rate since it will be categorized as commissions.
Another great "Thank You Cingular employees!" from this wonderful company.
Boun
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Dude why don't you just go deflate a store's blow-up Cingular Jack or something. Everyone knows you hate Cingular you don't need to post your same remarks every day.
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Commissions are NOT taxed at a higher rate than regular income.
Where do you get this stuff?
Where do you get this stuff?
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Actually, commissionis taxed higher because it is "free" money. It is money that you get for your sales. It is basically the same thing as a waiter or waitress. You have to claim your tips, or "free" money, and it is taxed higher. Just as if you win a phone, the tax on that is higher because it is basically "free money" they are giving you. Look into it and you will find out the truth.
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So then why does your w-2 not have a seperate section for commissions?
That is a completely ignorant and false premise.
The IRS taxes you based on a tax table and the tax table doesn't care HOW you make your money.
That is a completely ignorant and false premise.
The IRS taxes you based on a tax table and the tax table doesn't care HOW you make your money.
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On my W-2's it has it seperated. Think of it as tips for being a waiter or waitress. It is free money. It may not be taxed much higher, but it is.
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Its nothing like tips. Tips come from the customer in the restaurant business, not the restaurant itself. Commissions come from the company as compensation.
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What box does it show commissions? There is no box for commissions. There is a box for wages and a box for claimed tips (for what an employer says you should have received in tip).
As an employer I can only say you are wrong. I do not report commissions sepeately from salary and/or hourly wages. As an employee in this same industry for the previous 13 years my commissions never were reported seperately.
As an employer I can only say you are wrong. I do not report commissions sepeately from salary and/or hourly wages. As an employee in this same industry for the previous 13 years my commissions never were reported seperately.
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Hey Texas.
FYI that is very different from state to state. My commissions show up split from my wages on my W2 in my state up here in the NorthEast.
I am also taxed higher on my commissions and bonuses due to the income tax rate here.
I lose about 25-30% of my base salary due to taxes. I lose almost 40% of my commissions due to taxes. My returns are pretty large but still...
Keep in mind this is a STATE income tax.
FYI that is very different from state to state. My commissions show up split from my wages on my W2 in my state up here in the NorthEast.
I am also taxed higher on my commissions and bonuses due to the income tax rate here.
I lose about 25-30% of my base salary due to taxes. I lose almost 40% of my commissions due to taxes. My returns are pretty large but still...
Keep in mind this is a STATE income tax.
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The W-2 is a Federal form. It is the same anywhere you go. There is NO section on the W-2 for different types of pay, other than tips as reported by your employer.
Now on your paycheck commissions and salary may be split and as I stated that is due to your witholdings. If you earn more commissions than salary you may tend to get a higher tax return BECAUSE throughtout the year more if withheld from your check. To combat this you simply adjust your withholdings.
Now on your paycheck commissions and salary may be split and as I stated that is due to your witholdings. If you earn more commissions than salary you may tend to get a higher tax return BECAUSE throughtout the year more if withheld from your check. To combat this you simply adjust your withholdings.
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Certain states have 'state income tax', ie: Connecticut. Some states do not, ie: Florida...
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OK, and those tax income taxes come out under section 14 of your w-2. I was also a resident of CA where there was a state income tax.
Withholding and tax rate are two different things. I agree that taxes are withheld at a slighly different % on bonus and commission checks, but at the end of the year when you actually FILE your tax return the amounts are lumped together and taxed at the exact same rate.
Withholding and tax rate are two different things. I agree that taxes are withheld at a slighly different % on bonus and commission checks, but at the end of the year when you actually FILE your tax return the amounts are lumped together and taxed at the exact same rate.
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I have encountered this every year when I do the tax returns for my family and friends (I have an accounting degree and have been doing tax returns for about 5 years), and here is the real explanation, STATE INCOME TAX OR NOT!!!!!!!
Your withholdings are set by you. Your pay checks, commission or non commission, have deductions taken from them based on the way you set up your withholdings. In most cases, your withholdings that come out of your commission checks will be significantly higher due to the dollar amount of those checks being significantly higher than the dollar amount of your base pay, thus creating a perception that commissions are taxed at a higher rate. Here is what really happens:
Each payroll check you receive, commi...
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Your withholdings are set by you. Your pay checks, commission or non commission, have deductions taken from them based on the way you set up your withholdings. In most cases, your withholdings that come out of your commission checks will be significantly higher due to the dollar amount of those checks being significantly higher than the dollar amount of your base pay, thus creating a perception that commissions are taxed at a higher rate. Here is what really happens:
Each payroll check you receive, commi...
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My paychecks have commission and hourly wages separate, but my W-2 does not. Maybe your state income tax laws are different, but our commissions are taxed the same as hourly wages. Bonuses are taxed higher though.
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Ours as well. Mine are posted out the same way Ralph. W-2's are all together, but my paychecks seperate it out, but not for taxing purposes. Nice to see ya!
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Bonuses are withheld higher due to the frequency of payment of said bonuses.
It still all ads up to one line on your w-2.
It still all ads up to one line on your w-2.
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Phoneking13 said:
On my W-2's it has it seperated. Think of it as tips for being a waiter or waitress. It is free money. It may not be taxed much higher, but it is.
It "seems" like its higher because you are making less. its not the taxes on your money that you are not seeing its your paycheck that is being reduced. therefore you are actually paying LESS taxes.
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Texas,
Here is the deal. Any Bonuses, commissions, tips are taxed at a higher rate. I remember paying 36% tax on a bonus check when I was a restaurant manager. I understand that commissions may be added onto your regular paycheck and it seems like its not but compare the actual percentage amount of money that they take out from a regular salary check. Yes I know it will be higher (DUH!!) but it will be way more than what you would expect.
Here is the deal. Any Bonuses, commissions, tips are taxed at a higher rate. I remember paying 36% tax on a bonus check when I was a restaurant manager. I understand that commissions may be added onto your regular paycheck and it seems like its not but compare the actual percentage amount of money that they take out from a regular salary check. Yes I know it will be higher (DUH!!) but it will be way more than what you would expect.
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Bonuses are taxed higher, but commissions aren't. My manager are sitting here comparing our paystubs, and that's the way it is in Texas. Some states do have a state income tax though. Texas (the state) doesn't have an income tax, so you may find the difference there.
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If the extra money for the Quota is considered a bonus, they will be taxed higher. Bonuses are around 33% so it will not be seperated on a W2 but it will be taxed at a higher rate.
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st1x80 said:
If the extra money for the Quota is considered a bonus, they will be taxed higher. Bonuses are around 33% so it will not be seperated on a W2 but it will be taxed at a higher rate.
That sounds right to me 🙂
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Ok, you guys are mistaking one thing for another.
Tax withholding is determined by frequency of paycheck and withholding allowances that you provided at the beginning of the year. If you do your withholdings wrong (i.e. not enough or too many allowances) you will have more or less money taken out of your check. Since you are only paid one commission check a month (and if it is a seperate check) the % taken from your check may be higher than that of hourly wages. To combat this (especially if you often get a big tax refund at the end of the year) you simply adjust your withholdings.
At the end of the year, the IRS looks at your TOTAL income (hence why I said on the w-2 it only shows one entry). They don't care if you made $60K in co...
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Tax withholding is determined by frequency of paycheck and withholding allowances that you provided at the beginning of the year. If you do your withholdings wrong (i.e. not enough or too many allowances) you will have more or less money taken out of your check. Since you are only paid one commission check a month (and if it is a seperate check) the % taken from your check may be higher than that of hourly wages. To combat this (especially if you often get a big tax refund at the end of the year) you simply adjust your withholdings.
At the end of the year, the IRS looks at your TOTAL income (hence why I said on the w-2 it only shows one entry). They don't care if you made $60K in co...
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you guys have been battling about tax rates. Are there any blue managers that care whats about to happen to their pay/livelihood?!
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Well, part of your premise was based on a false figure, so it comes into play.
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I care because AT&T Wireless is better than Cingular. I love ATTWS!!!!!
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