Question
Small Business - Salary Exempt vs. Non-Exempt?
I am a founder of a small business. I am looking at bringing on a full-time college student as a part-time employee for a commission based sales position just created. Without a base salary or hourly wage, can I pay someone - in this situation - commissions only? Besides having them fill out a W2 & W4, what other requirements do I have to meet?
2 years ago - 3 answers
Best Answer
Chosen by Asker
You can sure pay them commission only, the real question is should they be an employee or an independent contractor. This you will have to contact a CPA or the IRS about. There are many positions out there that are commission only, you just need to state it up front and make sure the person understands. I would make sure you have it in writing including a commission structure (what sale pays what commission etc.) and have them sign it.
by Todd R
2 years ago
Asker's Rating: 
Other Answers
Employing someone can cost loads and you may not take in a lot of money. Try to do the work by yourself or underpay your staff (that's only if your really cruel though).
by ? What ?- 2 years ago
You can absolutely pay commission only. Assuming they are still going to be an employee on payroll nothing is different other than tracking the amount due monthly. You may want to consider having him/her sign an agreement stating how he/she will be paid just to cover your own bases in case anything ever comes to a disagreement.
by Erica T- 2 years ago