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Thread: Deductions on commission?

  1. #1
    Email problem
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    Deductions on commission?

    Hi all

    I have to pay a freelance agent some sales commission.

    Are there any legislative deductions that my company must make or will the agent be responsible for any tax and other payments?

    Thanks

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    On what basis did you employ/hire/contract with him?

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    Only a simple agreement in which I agreed to pay commission on each sale.

    So the agent is freelance and does not actually work for me.

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    Site Caretaker Dave A's Avatar
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    Does the agent work for other businesses as well?
    The trouble with opportunity is it normally comes dressed up as work.

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    Yes...

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    Site Caretaker Dave A's Avatar
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    Well, between the commission only and being an agent for multiple companies, it definitely is not standard employment. That eliminates UIF, SDL and Workmans Compensation. All that is left is PAYE if these are not payments due in the normal course of the agent's business. The thread on independent contractors might help.
    The trouble with opportunity is it normally comes dressed up as work.

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    just me duncan drennan's Avatar
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    In terms of the statutory requirements if they earn more than 80% of their income from you then you must pay PAYE on their behalf - regardless of the working arrangement. If less than 80% comes from you then look at interpretation note 35 mentioned at the end of the thread Dave linked to.
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    Dave A (21-Nov-08)

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