Setting up a commission in QuickBooks

If you pay your employees on commission, you can set up one or more payroll items to track the commissions you pay. You can use either the Easy Setup or the Custom Setup to add the payroll item.

Using the easy setup method

  1. From the Employees menu, choose Payroll Item List

  2. From the Payroll Item menu button, choose New

  3. Select Easy Setup, and click Next

  4. Follow the onscreen instructions

To go back to a previous window, click Prev

Using the custom setup method

  1. From the Employees menu, choose Payroll Item List

  2. From the Payroll Item menu button, choose New

  3. Select Custom Setup, and click Next

  4. Click Wage, and click Next

  5. Click Commission, and click Next

  6. Follow the onscreen instructions

To go back to a previous window, click Prev

Tracking and paying commissions based on sales

  1. Add the employee to the Sales Rep list

When you add the employee, make sure you do the following in the employee record: Select Regular in the Type field for this employee. On the Payroll Info tab, add a commission payroll item in the area for Earnings. Enter the commission rate as a percentage in the Hourly/Annual Rate field.

  1. Generate a sales by rep summary report

To see the sales amount for each commissioned sales representative

  1.  Pay the commission with a paycheck

 

In the Earnings section of the Preview Paycheck window, enter the sales amount in the Quantity field.

 

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