How do I process payroll when relatives are rewarded a retainer to be reimbursed when they earn a commission? Help? I am bookkeeping for a travel agent (my first one) and am

I am bookkeeping for a travel agent (my first one) and am wondering on the best way to process payroll contained by MYOB when the sales staff are compensated a wage (retainer I suppose) each week which is to be rewarded back when they put up for sale a house and earn their commission. Would you do an advance? There must be a better instrument. Any advice much appreciated.

Answers: Helen,

I wonder why a travel agent is selling houses this seem very strange.

If you are within fact working surrounded by a real estate organization, has the wallet already been set up?

Can you track to see what be done in days gone by?

Real Estate payroll is extremely tricky and I have see it go unsuccessfully wrong.

I suggest you get someone who know what they are doing to come in and spend 90 minutes, one one one next to you training you in it.

Good Luck

1-you debit/charge an sketch for each retainer payment-most plausible an asset account / misc receivables
2-when hand earns a commission, you debit commission expense and an after deduct the amount of retainer giving made to employee (credit the misc receivables acct) - any vanished over commission is net take-home pay -
3-do you deduct payroll taxes? if yes, afterwards retainer deduction comes after adjectives taxes are withheld.
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