Understanding Commission Structures: Maximizing Your ISO Earnings
Break down how commission rates work, when commissions are paid, and strategies to maximize your earnings as an ISO partner. Learn about rep commissions (15%), ISO commissions (10%), and how claim values impact your bottom line.
Commission Rates at a Glance
- • Sales Rep: 15% of claim value (default, configurable)
- • ISO Organization: 10% of claim value (default, configurable)
- • CPA Fee: 5% of claim value (default, configurable)
- • Typical Claim: $40,000 → Rep earns $6,000, ISO earns $4,000 (actual amounts vary by business size and years in operation)
How Commissions Are Calculated
Commissions are automatically calculated when a claim moves to "closed_won" status. The calculation is based on the claim value (the total FICA tax credit recovered by the restaurant).
Example Calculation
Commission Statuses
Projected
Commission is calculated but claim is still in progress. Visible in your commission dashboard for planning purposes.
Confirmed
Claim has closed and commission is confirmed. Payment processing begins.
Paid
Commission has been paid out. Tracked in your commission history.
Viewing Your Commissions
Access your commission dashboard at /commissions to see:
- Today's Commissions: Commissions earned today
- Month-to-Date (MTD): Total commissions for the current month
- Year-to-Date (YTD): Total commissions for the current year
- Commission History: Detailed breakdown by claim, status, and payment date
Strategies to Maximize Earnings
1. Focus on High-Value Claims
Restaurants with more tipped employees and longer operating history yield higher claim values. Prioritize these leads.
2. Move Claims Through Pipeline Quickly
The faster a claim closes, the sooner you get paid. Use the platform's tools to streamline document collection and follow-ups.
3. Use CSV Import for Bulk Leads
Import multiple restaurant leads at once to scale your pipeline. More claims = more commission opportunities.
4. Build Relationships for Recurring Business
While FICA credits are one-time, satisfied restaurant owners may refer other businesses or need other services.
Commission Rates Are Configurable
Default rates are 15% for reps and 10% for ISO organizations, but these can be adjusted by administrators via ApplicationSetting. If you're part of an ISO organization, check with your manager about your specific commission structure.
Sources & References
- • IRS Form 8846 Instructions - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
- • IRS Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips