You are correct; since you are paying them before the income is earned, then it is an advance. You will have lots of entries to make to make sure you reduce subsequent month s income by previous month s advances. How long do you plan to give advances until a house is sold?
Saturday, December 8, 2012
How do I process payroll when people are paid a retainer to be reimbursed when they earn a commission? Help? -
How do I process payroll when people are paid a retainer to be reimbursed when they earn a commission? Help?I am bookkeeping for a travel agent (my first one) and am wondering on the best way to process payroll in MYOB when the sales staff are paid a wage (retainer I suppose) each week which is to be paid back when they sell a house and earn their commission. Would you do an advance? There must be a better way. Any advice much appreciated.
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