Sales Commission?

Question

I live in the State of Ohio - What is the federal and state tax rate on a sales commission check less than $2000 - I thought I read somewhere it was 43% - does anyone know the going rates? Thanks

Answer 1

I cannot tell you what it would be for the state, but for the federal anything under $7,550 is going to be at the 10% tax rate for a single filer. However, that is not including the self employment tax that you would have to pay. That rate is 15.3% for 2005. But remember you get half of that back to adjust your gross income.

All of this information is assuming that you receive a 1099-MISC statement at the end of the year. I hope this helps.

Answer 2

This is a tough question to answer because you need to provide more info about the persons total earnings. But in Ohio with an annual income of 2000 dollars you will pay 14 dollars.