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Started By
Message
Compensation question:
Posted on 8/3/13 at 9:09 am
Posted on 8/3/13 at 9:09 am
I am taking a job for a startup and the owner is paying me a % of the gross receipts that I bring in each month. The pay will be a mix of base+commission and the split is up to me. All travel expenses will be covered as well as health benefits.
Total monthly compensation will have me into the top tax bracket so, as it relates to taxes, are there any benefits to taking a higher base? Or lower base?
Any other issues you can think of that I may want to consider?
Many thanks in advance!
Total monthly compensation will have me into the top tax bracket so, as it relates to taxes, are there any benefits to taking a higher base? Or lower base?
Any other issues you can think of that I may want to consider?
Many thanks in advance!
2
Posted on 8/3/13 at 9:11 am to Robin Masters
quote:
The pay will be a mix of base+commission and the split is up to me.
Interesting. What field?
Posted on 8/3/13 at 9:13 am to TyOconner
quote:
nteresting. What field?
Medical
But base + commission is pretty standard.
Posted on 8/3/13 at 9:22 am to Robin Masters
Yeah I agree, I am in the same field and actually launching a start up on the first of next month. Are you going to be doing sales?
Posted on 8/3/13 at 10:06 am to Robin Masters
Tax wise you will be hit with same same tax with earnings from commission or salary. The decision should be made on your personal risk tolerance. If you think you'll kill it, go with more commission, if you've got a family to provide for and need your income to be stable, go for the higher base.
Posted on 8/3/13 at 10:09 am to Beerinthepocket
I think the deal is that he is paid the same either way but he can put it on paper as any mix of base and comission.
Posted on 8/3/13 at 10:11 am to TyOconner
quote:
TyOconner Compensation question: Yeah I agree, I am in the same field and actually launching a start up on the first of next month. Are you going to be doing sales?
Yes, sales + management of techs we install at clinics who use us.
Best if luck to you on your start up! I hope you kill it.
Posted on 8/3/13 at 10:19 am to Robin Masters
Thanks man, yall too. 
Funny thing is that ours sounds eerily similar. 
Good thing yall will be on the other side of the south.
Funny thing is that ours sounds eerily similar. Good thing yall will be on the other side of the south.
Posted on 8/3/13 at 11:25 am to Robin Masters
A higher salary is better for borrowing purposes. A mortgage lender will average commissions over a 2 year period to determine your income and will take out any business deductions you claim. They'll use the salary straight up for qualifying.
Other than that I don't see a benefit one way or the other.
Other than that I don't see a benefit one way or the other.
Posted on 8/3/13 at 3:42 pm to VABuckeye
quote:
A higher salary is better for borrowing purposes. A mortgage lender will average commissions over a 2 year period to determine your income and will take out any business deductions you claim. They'll use the salary straight up for qualifying.
Other than that I don't see a benefit one way or the other.
Good point. Thanks!
Posted on 8/3/13 at 3:43 pm to TyOconner
quote:
Thanks man, yall too. Funny thing is that ours sounds eerily similar. Good thing yall will be on the other side of the south.
Plenty of medicare and insurance money to go around!
Posted on 8/3/13 at 3:52 pm to Robin Masters
quote:
Plenty of medicare and insurance money to go around!
True statement.
Hopefully it will stay that way for years to come. Its a bitch from the consumer side(see the ER bill thread on the OT) but it totally rules from the provider side. 
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