How to Calculate Commission & Loss of Wages
Commission pay, also referred to as commission salary, is compensation typically paid to a sales representative when a product or service is sold. Some companies offer a simple per-sale commission while others offer a percentage based on cumulative sales.
Loss of wages may occur for any of several reasons and is not limited to sales representatives. Any worker may experience loss of wages. Possible scenarios include lost time due to personal injury, a voluntary cut in pay and a demotion.
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Instructions
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Calculate Commission
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1
Calculate commission on a sale based on a percentage of the price. For example, to calculate a 5 percent commission on a $1,500 computer, multiply $1,500 by 5 percent or 0.05. The commission is $75.
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2
Calculate a commission on cumulative sales --- for example a 2 percent commission for the first $10,000 in revenue plus 4 percent for anything above $10,000. Say you bring in $20,000 in revenue.
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3
Multiply $10,000 by 2 percent or 0.02 to get $200. Multiple $10,000 by 4 percent or 0.04 to get $400.
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Add the two totals together for your cumulative sales commission of $600.
Calculate Loss of Wages
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Calculate loss wages on a daily basis. Multiply your hourly rate by the number of hours you work per day. For example, multiply $16 by 8 to get $128.
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Multiply the result by the number of days you cannot work. Do not include non-scheduled work days. For example, multiply $128 by 4 to get $512 over a four-day period.
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Calculate loss wages on a weekly basis. Multiply your hourly rate by the number of hours you work per day. For example, multiply $10 by 8 hours to get $80.
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Multiply the result by the number of days you work per week. For example, multiple $80 by 5 to get $400
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Multiply the result by the number of weeks you cannot work. For example, multiply $400 by 2 to get $800 in lost wages over a two-week period.
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