In an S Corporation just starting out, with only 2 employees (the co-founders), can you simply pay straight commission pay, and not hourly? For example, if 1 employee makes 25 sales at $99.00 per sale (totaling to $2475 in revenue for this employee), can you simply state that they receive 60% on every sale made? (So that per sale in this scenario, the employee would collect $59.40, and for the total 25 sales, collect $1485) If this can be done, what taxes would be collected upon, just sales tax and then individual income tax?
Thank you for your input in advance!





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