Results 1 to 7 of 7

Thread: Deductions on commission?

  1. #1
    Email problem
    Join Date
    Jul 2008
    Location
    Polokwane
    Posts
    17
    Thanks
    0
    Thanked 1 Time in 1 Post

    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

  2. #2
    Silver Member
    Join Date
    Jun 2008
    Location
    JHB
    Posts
    271
    Thanks
    73
    Thanked 76 Times in 56 Posts
    On what basis did you employ/hire/contract with him?

  3. #3
    Email problem
    Join Date
    Jul 2008
    Location
    Polokwane
    Posts
    17
    Thanks
    0
    Thanked 1 Time in 1 Post
    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.

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Does the agent work for other businesses as well?

  5. #5
    Email problem
    Join Date
    Jul 2008
    Location
    Polokwane
    Posts
    17
    Thanks
    0
    Thanked 1 Time in 1 Post
    Yes...

  6. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    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.

  7. #7
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts
    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.
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  8. Thanks given for this post:

    Dave A (21-Nov-08)

Similar Threads

  1. Human Rights Commission on threat from criminal activities
    By I Robot in forum South African Politics Forum
    Replies: 5
    Last Post: 02-Jul-09, 04:37 PM
  2. No whites allowed!
    By Dave A in forum South African Politics Forum
    Replies: 8
    Last Post: 21-May-08, 04:53 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •