Commissions count in tallying highly compensated exemption — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Commissions count in tallying highly compensated exemption

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Q. I have a question about the new highly compensated exemption. I have inside salespeople and their base salary is about $40,000, but their commissions net them over $130,000 a year. Could I classify them as exempt? —Michelle, California

A. Yes, you can. The new highly compensated exemption says people who earn more than $100,000 a year and perform at least one of the exempt duties would be considered exempt. And the rule says commissions would count toward that $100,000 total. So as long as that person is getting a minimum of $455 a week in base salary (the $23,660 annual threshold) that person would be exempt.

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