IRS Publication 15 — Employer's Tax Guide (Circular E)
This is the passage the answer relied on, shown in the document's own words. The highlighted text is the exact excerpt quoted — extracted verbatim by the citation system, so it cannot be fabricated.
Open official source at page 50 ↗
Exempt. Exempt.
2. To certain retail commission salespersons ordinarily paid solely on a cash commission basis.
Optional with employer, except to the extent employee’s supplemental wages during the year exceed $1 million.
Taxable. Taxable.
Nonprofit organizations. See Pub. 15-A.
Officers or shareholders of an S corporation: Distributions and other payments by an S corporation to a corporate officer or shareholder must be treated as wages to the extent the amounts are reasonable compensation for services to the corporation by an employee. See the Instructions for Form 1120-S.
Withhold. Taxable. Taxable. 5 See Overtime compensation in section 5. 50 Publication 15 (2026)
Excerpt shown from a longer document — use the official source button above to read the complete publication.