A payroll accountant is preparing the final pay for a commission-based salesperson who has been terminated from the firm.What will happen to the salesperson's commission that have been earned but not paid?
A) The salesperson must receive termination pay immediately and forfeits all unpaid commissions.
B)
The salesperson's final pay is delayed to allow for computation of commissions.
C) The final pay must include all commissions earned,in accordance with any pay agreement.
D) The employee must receive final non-commission pay immediately,but any commission pay will be delayed.

Question

Quizplus · Accepted Answer

The salesperson's final pay must include all commissions earned, in accordance with any pay agreement. Commission-based salespeople only receive payment for commissions when a sale is made, and thus have already earned the commission before being terminated. It is important to ensure that the salesperson is compensated for their earned commissions, even though they are no longer employed by the firm.

A Payroll Accountant Is Preparing the Final Pay for a Commission-Based