FLSA Compliance: Fair Labor Standards Act requirements for minimum wage, overtime, and record-keeping obligations for commissioned employees
FICA Requirements: Federal Insurance Contributions Act regulations regarding Social Security and Medicare tax withholdings on commission payments
Internal Revenue Code: Federal tax regulations governing commission reporting, withholding requirements, and tax treatment of different commission structures
State Wage Laws: State-specific requirements for wage payments, including timing of commission payments and record-keeping obligations
Employment Classification: Rules governing employee vs. independent contractor status and their impact on commission structure and payment obligations
Commission Calculation: Clear methodology for calculating commissions, including base rates, tiers, and any applicable bonuses or adjustments
Payment Schedule: Defined timeline and conditions for commission payments, including earned vs. paid commission distinctions
Post-termination Rights: Requirements for handling commission payments after employment termination, including timeline and conditions
Clawback Provisions: Terms and conditions under which the company may recoup previously paid commissions
Industry Regulations: Specific regulations for certain industries (e.g., securities, real estate, insurance) affecting commission structures and payments
Dispute Resolution: Procedures and mechanisms for resolving disputes related to commission calculations and payments
Record Keeping: Requirements for maintaining accurate records of commission calculations, payments, and related documentation
