Tax rates

[Hits001]

Hi all,

I am brand new on the forum and will be introducing myself in the Meet & Greet forum.

I have just registered a CC for the purposes of soliciting coprporate funders to utilise their CSI budget to sponsor disadvantaged schools with educational maths software (Gr8 to 12).

In working with the company that supplies the software, my cc will be earning a % comm on the deal value.

I have also hired 2 sales teams to assist with securing deals. They will be paid on a comm basis only. Also, they are not employees of the cc but contractors.

Forgive me if the following questions sound simple, but I need some guidance please

1. What tax rate would I need to apply to the sales staff member? Is there a contractor tax rate vs employee tax rate? PLease assist here.
2. Also, what are these rates?
3. Regarding the cc, what tax rate does the cc pay? Again, is there the cc tax table? Please explain the 29% company (cc) tax rate and when does this apply?
4. Does the contractor apply for provisional tax or do I apply tax as per tax tables. Any insights here most appreciated.

Thanks for any assistance. I hope to contribute in the other sections with time.

[Hits001]

PLease help here.... an attempt to answer some of the questions or provision of any insights will be appreciated.

thx!

[Dave A]

My idle thought when I first read this one was if your cc only has one client, your client is probably going to have to deduct tax from payments made to the cc, let alone what goes to the staff or your contractors/commission earners. The number of employees in the cc is critical in this, and by the looks of things you're not hiring many.

This may be further complicated because I understand there are a few special tax breaks and rules involved with education, donations and CSI spend.

Altogether, far too many factors for me to even take a stab at this. This one will need to be unravelled by a genuine tax expert, methinks.

[Hits001]

Thanks Dave for providing an initial angle....

it seems a tax expert is the way to go here....

[Morticia]

Hi there,

Some info on the classification of employees and what tax rates are applicable to the various classes. Very important to make the correct classification between independant contractor v. normal employee.

[Hits001]

Thanks very much.... very useful indeed!