How to Pay the Sales Commission When an Employee Leaves the Company
Most companies have a specific process they utilize to pay commission to employees. Generally, the commission schedule falls in line with the company's payroll schedule and may consist of a payment once or twice monthly. However, when an employee leaves the company before he receives commission, the business in question may be left holding the check and wondering what to do with it.
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Instructions
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Determine the total amount of commission due to the employee. Since he is no longer with the company, you have time to figure out everything he is owed and double-check to be sure any commission payments owed to the staffer were all paid or included in the outstanding amount you've got accounted for already.
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Locate a current address and phone number for the employee. Legally, even if the customer didn't pay until later, you are required to pay the commission to the sales person from that account. To do so, you may need to mail his commission check or ask him to come and pick it up.
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Make arrangements to get him the monies owed to him. If he left under unfavorable conditions (for instance, he was terminated for breaking a company rule, he created a hostile work environment or did something that may pose a security risk), either leave his check at the front desk or offer to mail it to him. Include a detailed listing of the accounts from which the commission was paid.
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Meet to discuss closing out accounts. If the employee left under his own accord or there were no issues with his leaving, then schedule a pow-wow with him to give him monies owed from his sales commission and look over the itemized lists of accounts to ensure he is finished with your business and that there are no other accounts from which he is due any further commission.
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