Jin said:
@Peyton
Good explanation, but what does ADP stand for?
ADP is a payroll provider.
This looks like an issue with your commission. You should ask payroll or your manager for clarification.
Without more details, it’s hard to say. It seems like the proportion of commission income to deductions has changed. I’d recommend talking to HR or payroll for clarification.
Why is part of your commission being deducted? Where is that money going?
It looks like they charged you $7.8K against your commission earnings. You should find out what that’s about—it doesn’t seem right.
It looks like they’ve deducted $9,010.50 in commissions this year. That deduction seems to be post-tax, which is unusual. Check your previous pay stubs and talk to payroll. This doesn’t seem like taxes.
Why are they taxing $17K gross and then deducting $7.8K afterward? That should have been deducted before taxes.
Looks like over $7K in commissions was clawed back. Check with your manager to confirm.
Is this an ADP pay stub? My company has had issues with payroll accuracy since switching to ADP.
Parker said:
Is this an ADP pay stub? My company has had issues with payroll accuracy since switching to ADP.
Someone from ADP tried to pitch us recently, but I shut them down. Seems like I dodged a bullet!
If this was a commission advance, why wasn’t it taxed when it was originally paid?
Did you borrow money from your employer? This looks similar to an advance being deducted.
Could be a mistake in how taxes were applied.
Check if they’re miscalculating your overtime. Commissions and bonuses often affect overtime rates.
If you’re in California, this could just be state taxes being higher.
Your pay stub looks like you’re making $17,634 every two weeks, which isn’t right. FICA taxes are being over-applied because of the commission clawback. You might need to request a refund for the overpaid FICA taxes when you file your return.
@Sky
The issue with FICA is tied to the commission deduction. FICA applies to every dollar earned until you hit the cap. If the commission wasn’t actually paid, this needs to be corrected.
Bonuses and commissions are often withheld at higher rates to avoid underpayment. If this deduction isn’t related to clawbacks, it might balance out as a refund during tax filing. Still, clarify with payroll.
@Zorion
Bonuses and commissions are withheld at higher rates, but they’re taxed the same as regular income.