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This isn't entirely accurate. What you described is a 'socialist' community, the so-called 'lower stage of communism'. In this stage, there would still remain incentive based structures for labour. It employs a policy of "from each according to his ability to each according to his works". Inequality still exists as explained by Marx here:
It is during this lower stage that the transformation of social relations and productive forces gradually alters the motivations for labor to a more virtue-based one.
The problem most communism skeptic people have with communism is that they reason within the current modes of subsistence and assume it is impossible.
Marx also stated that he expected us to remain in the lower stage of communism for centuries, but it is during this stage that we prepare the productive forces to sustain communism and start producing goods for their use-value rather than for their exchange value, so that we can achieve the higher stage of communism which employs 'from each according to their ability to each according to his needs. This higher stage is truly classless because we would supposedly have solved scarcity, it would be stateless because people would organize communally to meet their needs, and it would be moneyless because the means of production and means of subsistence would be free for all to access.