Base draw + % commission

[classicman]

In a sense that is correct Pico. Its usually not that simple though

[freshnesschronic]

Lets just fudge these numbers:

Say commission is $30,000 base salary.
The draw is $2,500 monthly. This means that I'm given a check for $2,500

So say in one month I sell $30,000 worth of sales, 15% of that is $4,500. So do I subtract the $2,500 from that $4,500, so is my commission for the month $2,000? On top of my weekly base salary paycheck?

[xoxoxoBruce]

Say commission is $30,000 base salary.

No, base salary and commission are two entirely separate things.

If you are doing a draw, I doubt if you'll get weekly checks, a draw is an advance against your total pay, salary & commission, at the end of the month.

[classicman]

Be careful not to confuse salary with draw.
A draw is basically an advance against expected sales commission.

Try it this way -
Your draw is $2,500 monthly. you are given a check for $2,500 each month.

So say in one month I sell $30,000 worth of sales, 15% of that is $4,500. So do I subtract the $2,500 from that $4,500, so is my commission for the month $2,000? On top of my (weekly) base salary paycheck?

Yes this is typically the way it works in most cases.

Originally Posted by Pico

say you only sold enough to earn $2,000, the company still pays you $2,500, basically covering the $500 you didn't make. However, next month if you earn $4,500 in commission, the company will keep that $500 difference and only pay you $4000.

You also need to be aware of when commissions are calculated and paid. They can be monthly/quarterly.... They also may not pay you immediately. Commissions may be calculated on "cash in" - meaning they are based upon what is paid for not "sold."

You really need to know and understand all of this. Some companies are pretty shitty.

Also are you an employee or an "independent contractor"? If you are the latter, YOU are responsible for a lot more of your tax liability and I believe have to file quarterly. This affects your actual net earnings at the end of the year.