Commission is

Commission is

• A. A fixed annual salary
• B. A payment based on hours worked
• C. A payroll tax
• D. A payment based on a percentage of sales

Answer: (D)

Commission is a form of pay that depends on the amount of sales you make, usually a percentage of the sale value. This is why it’s the best choice: your earnings rise or fall with how much you sell, rather than staying fixed like a salary or being tied to hours worked. It’s not a payroll tax, which is money taken by the government from wages, and it’s not a fixed or time-based payment. For example, with a 5% commission, selling £2,000 worth of goods would earn £100 in commission.

Commission is a form of pay that depends on the amount of sales you make, usually a percentage of the sale value. This is why it’s the best choice: your earnings rise or fall with how much you sell, rather than staying fixed like a salary or being tied to hours worked. It’s not a payroll tax, which is money taken by the government from wages, and it’s not a fixed or time-based payment. For example, with a 5% commission, selling £2,000 worth of goods would earn £100 in commission.