QUESTION
Filled out W4 but employer says I'm commission based pay and lost financing on house because of this.
Asked on Aug 17th, 2016 on Employment Contracts - Texas
More details to this question:
I work for an individually owned franchise and filled out a W4 upon hire, I file as an employee and during the process of buying a house I lost financing because my employer says I am "commission based pay". Does this mean that he is saying I'm an independent contractor? What can I do about this?
1 ANSWER
Your compensation can be based on commissions even if you are an employee, and not an independent contractor. The question of whether you are an independent contractor or an employee depends upon the degree of control you have over what you do and how you do it, not the basis of your remuneration. Anyway, potential lenders are not interested in whether you are an employee or independent contractor. They care about your income, and how steady and reliable it is.
Answered on Aug 17th, 2016 at 1:48 PM