Your employer cannot retroactively change your commission structure for work that has already been completed. Once you have earned commission under an existing commission plan, your employer is bound to pay it. However, your employer can change the terms of how you earn commission going forward.
Can commissions be deducted?
Commissions and Taxes Commissions are always taxable income to the person receiving them, both employees and non-employees. Commissions are a cost of doing business, so if they are “ordinary and necessary” expenses they are usually deductible to your business.
Can an employer change our commission plan any time it?
Said differently, an employer can change the way commissions are earned and paid in the future, not in the past. So, if you earned a certain commission in prior quarters, you must be paid those commissions according to the former commission plan. But going forward, any commissions earned must be earned in accordance with the new commission plan.
Do you have the right to change your compensation?
It depends on your employee contract. If you think there is a breach of contract, it may be wise to get a legal opinion. It sounds like your employer gave you notice of change with respect to compensation and staffing, and typically, employers in sales-driven organizations are within their right to change these factors with due notice.
Can a boss change the rate of commission?
Unless you have a contract promising you a certain commission rate for a particular period of time or for particular accounts, your boss can prospectively, or on a forward-looking basis, change your commission structure.
When did my employer cut my commission rate?
Since starting with my current employer on October 1st 2011, have been at 18-per-cent commission. In May, it was announced that a second person with no experience in sales would be added to my department, that my commission rate would be cut to 15 per cent and that my income would be dependent on his sales as well.
