what is commission and bonus
Answers
Answer:
a commission is “communicated as a piece of action (e.g., 2% of revenue, $5 per unit sold, 6% of margin dollars).” a bonus is “a fixed incentive amount offered for achieving a specific objective”
Step-by-step explanation:
commission
Commission, also known as sales commission, is a payment given to employees based on the sales they make.
Commision is just one of the many things you need to consider when hiring staff. Find out more about managing payroll for small businesses.
Commission is often calculated as a percentage of the value of a sale. The rate usually correlates to how difficult it is to sell the product, with easier sales having a lower commission rate.
Employers who offer sales commission should outline their rules for earning commission in their employees’ contracts. For example, it should be explicitly clear which sales are eligible for commision, which rates apply, whether there is a commision cap, and when employees will receive the commision they earn.
Commision is usually earned on top of a base salary; however, some companies may offer commission-only sales positions. In the UK, jobs which offer commission-only positions are still required to meet the rules regarding minimum wage.
Commision might be considered a type of bonus; however, bonuses are usually one-off payments given at a particular time of year or under specific circumstances, whereas sale commission might be given whenever an employee makes a sale.
bonus
A bonus is extra money that an employee receives on top of his or her wages or salary. The person may receive the extra payment for good performance. Sometimes, all employees in a company receive extra money at a certain time of the year. For example, if they get an extra payment at Christmas, it is a Christmas bonus.A company may give its shareholders bonuses, as in: “Acme Limited is set to give its shareholders a bonus of $1 per share.”
Insurance companies give customers bonuses if they have a very profitable year.
In a general English, non-business context, the term can mean a benefit or advantage. For example, I might say “The proximity to shops is an added bonus, but the real appeal is the incredible view.”