Can a employer not pay a commission sales person a commission on a invoice that is over 60 days old?

Question

As a sales person that is paid as a commissions only independant contractor - My employer is withholding commissions on any sales that is over 60 days old. Is this legal?

Answer 1

yes. Is there a written contract, agreement, or even a company statement that explains how commissions are paid?

I worked for a company that paid commissions when the revenue was collected, and took off certain percentages if collections took more than 60, 90, or 120 days.

Answer 2

In my experience, the salespeople I have paid have been paid for the sales when they happen, but also have been charged back if the money turns out to be uncollectable. In your case, the employer is just not paying the commissions until the money is collected, which is also legal. Technically, you haven't made a sale until the money is collected.

FYI, commission only does not necessarily translate to independent contractor. You can check the rules on independent contractor vs. employee at the IRS website, www.irs.gov.

Answer 3

If this is allowed for in the contract you signed, it is legal.

Even if this were not mentioned in the contract, if there are other words that imply that commission will be paid only when payment is received within 60 days ( as an example ) - then you have no legal recourse.

From the employers POV, this is reasonable - if he cannot collect from the buyer, there should be no commission until payment is received.

Answer 4

Are you inside sales/customer service? Exempt or non exempt?
2 answers -
Sometimes companies will mis classify employees as contract workers, which means that they don't have to pay salary. If your boss is indeed an employer and a boss, then you should be getting a Salary based upon classification..

2 - You should have a contract.. if not in writing, at least a verbal understanding of when and how your comissions should be paid. If the monies is due to you, they should be paid, and in the time frame as promised.

The government does not allow for individuals to work in America without pay..

Answer 5

As a commission agent you should have a contract/agreement which should state when commission is paid and if there is any reason it may be withheld. The agreement can be written or verbal.

Answer 6

sounds like they're scamming you out of your commissions. Tax fraud? perhaps, perhaps no. First, meaning they are actually not paying your mileage, you're. that is popping out of your commissions not from them! precise? And in case you paid your man or woman mileage with out any repayment then (in case you itemize deductions on your taxes) you're able to write off (not pay taxes on) those mileage costs. yet while they're claiming they're reimbursing you, then you certainly won't be able to write that mileage fee off. So in the event that they're claiming to pay mileage for you (so which you won't be able to write it off your taxes) yet doing it alongside with your fee, you're being double tapped with out lube. And their answer that it lowers your taxes is nearly like announcing "i comprehend we stated we'd pay you 50K a twelve months, yet with the aid of paying you basically 20K a twelve months we are saving you from having to pay taxes on that different 30K." bear in mind, in spite of while you're interior the optimal tax bracket, each greenback they permit you comprehend they have stored you in taxes on your fee advise they taken away 2 money and 80ish cents of your fee! Wow, what friends! Are they committing tax fraud - perhaps, perhaps not, yet it is their difficulty with the IRS not yours. Your difficulty isn't any count if or not they're committing fraud on YOU. it is in the journey that your contract with them states they pay for mileage reimbursements yet they're paying it to you out of your commissions, they breaching their contract with you. sounds like it particularly is particularly useful to have a criminal expert take a sprint looksy at your contract. perhaps!