When hiring, many managers, in order to motivate their work, except for the salary, agree with the manager on paying him a percentage of the total amount of transactions. After that, managers calculate their percentage and, when issuing salaries, take bonus money.
How to calculate the percentage of sales
You will need
– An employment contract (contract) indicating the amount of interest;
– memo to the accounting department;
– the number of transactions concluded, confirming the relevant accounts.
1. When hiring a sales manager, you need to immediately agree on pay. Typically, managers are assigned a salary and a percentage of the amount of transactions.
However, there is a practice where some managers pay a percentage of the profit, that is, of the amount that remains after deducting all the expenses spent by the company on the employee. These expenses include office rent , salary, travel expenses, etc.
Thus, as a result, the manager can remain almost at zero, limiting himself only to his rate. According to the current legislation, employers may or may not pay interest on sales at all, and from the total amount of bonuses they have the right to deduct household expenses, fines and everything that they wish.
2. To protect yourself from such troubles, sign a contract and make sure that it has a clearly written procedure for calculating your salary. In this case, the contract becomes one of the arguments for recovering unpaid money from the employer from products sold by you.
3. The fairness of the payment of the percentage of sales is agreed in advance with the head of the enterprise. It should be reasonable and not bring the company a loss, but you should not remain on the loser.
It is advisable that your manager understands that such a type of motivation for managers as a percentage of sales should be regarded by them as a fair reward, otherwise the manager’s work productivity will inevitably decrease or he will leave for another company.
If he does not understand this, save time and nerves by trying to get a job with a more adequate assessment of labor.
4. To calculate the percentage of the sale, multiply the percentage given to you by the sale amount and divide by 100. As a result, you will receive your salary bonus, which, however, will be less after tax. Indeed, personal income tax, deductions in social insurance, the Pension Fund, etc. are also imposed on bonuses and bonuses. As you can see, in general, the calculation is simple.
5. To accrue salaries at the end of the month, write to the bookkeeping office memo indicating your sales, paid and shipped invoices. After checking, the accountant will accrue your interest and taxes on this note, and include the amount received in the payroll statement.
Also check out our guide on how to calculate margin.