Myth: Commissions are taxed differently than salary. Here's what really happens: Selling Sally works hard at her job. She typically gets half in salary and half in commissions. She's hit her quota and is excited for those commissions to kick in. But she looked at her bank account and noticed something. Not as much money hit her bank as she had hoped. She then takes a look at her paycheck. What does she find? Her commissions are paying more taxes than her income! And we're talking WAY more than her salary. She makes $100,000 annually and her effective federal rate is 14.26% (2023) But commissions are paying a whopping 22% federal! Now that sounds unfair, right? But then she arrives to tax season. After filing her taxes, her accountant lets her know she got a massive tax refund! Now she's excited she gets a lump sum back, but is now curious. Did she cheat the system? Did she uncover some tax hack? Did she get some special write-off? Nope. She got a refund because her employer withheld more taxes than she owed. And that's the key word when looking at this: withheld. Whenever you have monthly income like a salary, it's considered "regular", which gets taxed regularly on the progressive system. But whenever you have irregular income like: - Awards - Bonuses - Commissions - Equity Compensation Or anything that doesn't pay monthly, it's considered "supplemental". And these irregular forms of income are withheld at different flat rates by default. For commissions, 22% for the first $1 million and 37% for any amount beyond that. (Federal rate for 2023) And this is held as a flat rate, not a progressive one! This means that given her income amount, she was setting aside more in taxes. But she still ended up getting back what she had overpaid. She didn't pay more for her commissions. She just had more withheld than owed. Big difference!

Putting FSU at #5 sends a bad message to the rest of the world. You can go undefeated and still miss the playoffs because your team doesn’t look good on paper. Horrible decision.