i'm in nevada and i sell make up on commossion only. now, i have to deduct the tax from my sales before i calculate my percentage. then when i recieve my check i'm taxed very heavily again. and on my paystub it states that i recieve salary. is this legal?
2006-10-08 18:55:19 · 4 answers · asked by joleen j 1 in Business & Finance ➔ Taxes ➔ United States
if you don't work on contract, you work on salary.
2006-10-08 19:04:12 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Is the tax you're deducting before calculating commission sales tax? That would make sense, since that's not really part of sales, but an add-on that has to be remitted to the state. Then when you receive your check, tax deducted there is probably income and FICA - if they're doing that, it's good, since you'd have to pay it anyway so they're taking care of some of the paperwork for you - and hopefully paying the employer's share of social security, otherwise you'd have to pay both halves.
Saying salary on your paycheck doesn't affect your taxes, so has no real legal effect. While the word "salary" is generally used to mean payment of a fixed amount for a time period of work, there are other meanings, and it can just mean money paid to you for your work.
2006-10-09 03:06:28 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
Definately sounds legal. Your commissin would be calculated before taxes are applied. They have to automatically take takes for state out and fed purposes. Think of it as paying your taxes on a real-time basis. At the end of the year, if you've overpaid your taxes you'll get a refund. .
2006-10-08 19:13:21 · answer #3 · answered by dtshaff 3 · 0⤊ 0⤋
No its not legal. seek to address the issue.
2006-10-08 18:57:49 · answer #4 · answered by Nnamsco 3 · 0⤊ 1⤋