Salary pay question....?

Question

Not sure if anyone can help me understand this or not but thought I'd try anyways. I started a new job, a salary position at a car dealership in the Service Dept. and I've never been salary before in my life. I was freaking out tring to understand the pay plan they gave me. (they used January as the month on paper)
The paper listed a month salary (real small amount) and a long list of all sorts of bonuses & at the bottom it said "total mthy compensation" $2499...minus "monthly draw" of $1700....the last line read total mthly bonus $799. What exactly is "mthly draw"?
We get paid bi-weekly....from what I do understand the first payday I get a small check...then the 2nd payday I get the same small check.... plus a bonus check. Is the "mthly draw" of $1700 the 2 small checks? Then the bonus check is what's left over? Anyone familiar with this type of pay who may help me better understand? I'll feel like an idiot asking my boss to explain it yet again. Thank You

Answer 1

It looks like you are on salary plus commission, with the salary, or mthly draw, being deducted from the commission.

Without knowing all the details, I can only give you a few scenarios that might or might not apply to your pay. 1) Your monthly draw, or salary of $1700 per month, is just a draw. If your commissions fall below $1700 in the month, you will receive less than $1700 in pay for the month. 2) The $1700 is the minimum amount you will receive in pay for the month, no matter what your commissions are. If you fall below that level in commissions, the negative amount will carry over to the next month against any extra commissions. 3) The $1700 is your minimum pay, and any shortfall on commissions is forgiven (not carried over).

Based on my experience, number 2 is the most likely. You will always receive at least $1700 in pay, but any negative bonus will be applied to your next month's monthly bonus.

Hope this helps you straighten it out.

Answer 2

If im reading this correctly seems to me you will get two checks with a gross pay of $850, then once a month you will get a check for $799 that is considered a bonus. Hopefully your employer is withholding taxes on your bonus money, if not you will end up owing some taxes next year. Congrats on your new job and good luck!

Answer 3

You should of left at the end of the pay period and then you could of avoided this question. If you had any unpaid vacation they should of given you that too when you left...unless their policy doesnt permit it. You gave them prior notice but did you work all the hours a salaried person is required to in that pay period? I worked a job that required me to work 48 hours salaried and they paid the differences when i left because i had worked over the 48 and could prove it. I even was given my bonus because I had earned it prior to my given notice. employers like to stick it to us when we leave them because they feel betrayed by us but when they treat us badly...it's what we deserve. Isn't that a joke! I say try and talk to payroll and see about what the policy is to get your money. Good luck!

Answer 4

Correct.
In case you don't sell something every week, some employers allow for a monthly or weekly draw.
Whatever you sell (say you're entitled to $100K in commission) if in the first 2 months you didn't sell anything the employer would still advance you money (your draw)

Answer 5

You are correct. The monthly draws are what they pay you on a regular basis and then either the additional bonuses you earned are given to you with your next check or in a separate check.