What are the tax differences between a "bonus" and a "commission"? - Get to know him here

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Marie-Ange Demory

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In case you were wondering what are the tax differences between a "bonus" and a "commission"? - Get to know him here , by reading the guide we have prepared on this. Keep in mind that this is all related to the differences between "direct salary" and "indirect salary", but focused on other types of work incentives.

Commissions and bonuses

Bonuses and commissions often create doubts between entrepreneurs and new entrepreneurs, in fact many people believe they are the same thing. In any case, the reality is different since the commissions they differ greatly from bonuses (at least in most circumstances). Therefore, if in doubt, read the definition of each of these terms carefully.


Commissions are payments made by companies for services or works rendered. It is important to keep in mind that payments for work done by cooperatives or contractors are also considered fees.

Usually these types of payments are made based on the amount of sales made by an employee. In other words, commissioned works are more fruitful with higher volumes of work .

It should be noted that there are variants in relation to commissions, in fact, some companies offer jobs with a basic salary and with special commissions. These fees usually represent a fixed percentage. This type of commission is common for sales people.

For example, suppose a company manager charges a commission percentage to every sale made by workers. If this commission is set at 5%, it means that, for each sale made, the worker will get a commission , but clearly to bring this type of system, it is necessary to know the importance of balance sheets in a company, properly managing expenses and payments.

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Companies provide these types of payments as rewards to employees for outstanding performance. Bonuses are usually not related to salaries and are not always provided by regulations or legality . This payment arises from the will of the owners or managers of the employees, who are part of the types of work incentive plans.

Undoubtedly, bonuses are often incentives that help create an atmosphere of well-being for employees. Indeed, a good bonus usually increases employee performance, as employees feel their work has special value and is appreciated.

There are many variations of bonds, in fact, although many are monetary, others are usually presented as gifts or objects. In fact, some companies have traditions of giving gifts to their employees after years of service.

We also talk about bonus di productivity , which represent incentives that are usually paid upon reaching a certain amount of sales or goals. These types of bonuses are offered to workers upon achievement of goals and are actually awarded as rewards.

Tax differences between "bonuses" and "commissions"

Any good manager who knows the main goals in human resource management knows that the most important tax difference between a bonus and a commission is that commissions, once paid, go directly through the tax processes. In other words, companies take into account the various taxes established by law when they pay commissions.

On the other hand, bonuses, when they arise correctly from the employers' will, should not go through this process. Of course, there are exceptions, because sometimes the "fixed bonds" they enter the various balances that a company maintains and therefore also fall within the payments of taxes or fees of these characteristics.

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