What is the tax difference between bonus and commission?

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1159881

2026-07-15 06:10

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A commission is earned by selling something. It could be a straight dollar amount per unit sold, or a percentage of the gross sale or the net sale. A bonus is a monetary reward over and above the regular salary or commission paid. For example, if a salesman had a quota of X units sold or X dollars in volume, met those quotas and more, the salesman may qualify for a bonus - an extra amount of money.

As far as tax difference, it all depends on the dollar amount. It will all come out when you do you yearly income taxes - you are taxed on your adjusted gross income. I missed the Word tax the first time I answered.

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