- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Have an Accounting/Tax question for any of you guys in the know.
Posted on 10/8/25 at 3:31 pm
Posted on 10/8/25 at 3:31 pm
Im at a job where I make 100% commission. My employer knows it takes a "bit of time" in this type of business to get going , so they pay you a salary (doesnt have to be reimbursed once your commission takes off) The salary ends once you make your first commission however (Salary is $3000 a month). So I just made my first commission check and they deducted $4,000 for taxes) It seems extremely high .FWIW, my first Commission check was for $12,060.00 . Considering when I started, I cant imagine being in a very high tax bracket this year ( I am pretty well versed in how the "Tiered" tax brackets work). So does this seem High ? Its important for me because if I wasnt married, No way I could get by on 3k a month. Its been pretty tough.
Married No dependents
Married No dependents
This post was edited on 10/8/25 at 3:38 pm
4
Posted on 10/8/25 at 3:41 pm to doze4
How did you fill out your W4/L4 forms? Does your paystub show an itemized listing of the various deductions? Make sure they aren't taking out more than necessary.
I'm assuming you are a W2 employee and not a 1099 contractor, correct?
I'm assuming you are a W2 employee and not a 1099 contractor, correct?
Posted on 10/8/25 at 3:58 pm to doze4
Commissions are considered supplemental wages. Here is an excerpt I found on this.
Employers can either use the percentage method or the aggregate method to calculate taxes for bonuses and commission. In the percentage method, a flat 22% (or 37% for values exceeding $1 million) is deducted from the bonus or commissions. In the aggregate method, the commission or bonus is added to the regular wages. Then, the employer calculates taxes using regular income tax rates.
Hope this helps.
Employers can either use the percentage method or the aggregate method to calculate taxes for bonuses and commission. In the percentage method, a flat 22% (or 37% for values exceeding $1 million) is deducted from the bonus or commissions. In the aggregate method, the commission or bonus is added to the regular wages. Then, the employer calculates taxes using regular income tax rates.
Hope this helps.
Posted on 10/8/25 at 4:12 pm to lsu for the win
quote:
Employers can either use the percentage method or the aggregate method to calculate taxes for bonuses and commission. In the percentage method, a flat 22% (or 37% for values exceeding $1 million) is deducted from the bonus or commissions. In the aggregate method, the commission or bonus is added to the regular wages. Then, the employer calculates taxes using regular income tax rates.
I did read that as well. But everything i saw was Commission + Salary. Never found anything for Commission only .
quote:
How did you fill out your W4/L4 forms? Does your paystub show an itemized listing of the various deductions? Make sure they aren't taking out more than necessary.
I just filled it out truthfully . Married and none. I am indeed a W2 Employee
I filled out some tax calculator online . This particular one, you just punch in the state you live in , your "year to date" and how much has been deducted so far. It says I need to claim exempt for the rest of the year because ive paid way to much
The damn thing is, I dont want the money at the end of the year . I need it now ! Ive been getting by on 3 grand a month, Plus I already owe the IRS a few grand which im paying back monthly. My main goal (I guess I should have stated this is to get my Boss to Re-Do it.) I just got paid yesterday. Was on my way to the bank to deposit, looked down at the check, saw how much they took out, backed right back out of the bank. Posted on 10/8/25 at 4:29 pm to TigerDoug
This information and adding in FICA & Louisiana withholding rate. You can make a reasonable estimation of taxes withheld which is in line with the $4,000 withheld.
$12,060 * 22% = $2,653
$12,060 * 7.65% = $923
$12,060 * 3% = $362
Total Employee Withholdings - $3,938
$12,060 * 22% = $2,653
$12,060 * 7.65% = $923
$12,060 * 3% = $362
Total Employee Withholdings - $3,938
Posted on 10/8/25 at 4:49 pm to doze4
Might be difficult for them to redo anything if they have already remitted payroll tax payments to the respective agencies. We use QB online for my employees and they immediately deduct all taxes.
Not sure you are legally allowed to claim exempt. I'd avoid that. Maybe redo your W4/L4 and select married and 4 to basically achieve the same result.
Does your spouse withhold a good bit? Just keep in mind that with no dependents and two high salaries you will owe a good bit in taxes. But I understand you are trying to maximize your net take home right now.
Or as the poster noted above - you might not have much choice if they are auto withholding based upon classifying your income as "commission" vs "wages."
Not sure you are legally allowed to claim exempt. I'd avoid that. Maybe redo your W4/L4 and select married and 4 to basically achieve the same result.
Does your spouse withhold a good bit? Just keep in mind that with no dependents and two high salaries you will owe a good bit in taxes. But I understand you are trying to maximize your net take home right now.
Or as the poster noted above - you might not have much choice if they are auto withholding based upon classifying your income as "commission" vs "wages."
This post was edited on 10/8/25 at 4:53 pm
Posted on 10/8/25 at 6:52 pm to doze4
The income tax withholding brackets do not look at how much you made year to date,
They look at, if you made this amount every paycheck, what would your tax be for this check?
Federal, state, and fica, this seems reasonable for an entire year.
Withholding for people that do not have a consistent pay can be a challenge.
They look at, if you made this amount every paycheck, what would your tax be for this check?
Federal, state, and fica, this seems reasonable for an entire year.
Withholding for people that do not have a consistent pay can be a challenge.
This post was edited on 10/8/25 at 9:07 pm
Posted on 10/8/25 at 7:53 pm to doze4
12k would have somewhere around 2600 for Fed
900 for state
350 for FICA
So 4k ain’t far off. You start making good money you start really hating govt
900 for state
350 for FICA
So 4k ain’t far off. You start making good money you start really hating govt
Posted on 10/8/25 at 7:56 pm to doze4
quote:there is no redo. You could change withholding to lower rates but be careful here, you start making 12k a month as a floor and don’t change it you could get a big arse surprise
The damn thing is, I dont want the money at the end of the year . I need it now ! Ive been getting by on 3 grand a month, Plus I already owe the IRS a few grand which im paying back monthly. My main goal (I guess I should have stated this is to get my Boss to Re-Do it.) I just got paid yesterday. Was on my way to the bank to deposit, looked down at the check, saw how much they took out, backed right back out of the bank.
Posted on 10/8/25 at 7:59 pm to LSUFanHouston
quote:this right here is the correct answer..plus FICA taxes of course
The income tax withholding brackets do not look at how much you made year to date,
They look at, if you made this amount every paycheck, with wound your tax be for this check?
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News