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Independent Contractor
or Employee?
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As this is a particularly
important issue for Direct Sellers the Inland Revenue Department
puts out an excellent guide to help with this issue. The leaflet
"Self-employed or an employee? (IR 186) provides a check list and the most of
the same information is provided in a summarized form in their
Employers Guide (IR184) These forms are availeble from the
IRD web site |
Direct Selling
Companies need to ensure your Distributors/Independent Contractors/
Agents or Salesperson agreements clearly set out the Independent
status based on the IRD definitions to prevent later problems. |
You will need to
look at the Fringe Benefit Tax implication if you reward by Bonuses,
overides and commissions where ownership of a product does not
pass to the distributor/Agent/Independant Contractor. Please
also read our Fringe
Benefit Tax Page on this. |
The Direct Selling Booklet (PDF 65k) published
by the IRD in conjunction with the DSA will help with this requirement
As a Direct Selling Company it is highly likely that you will
employ some Permanent Staff to manage, facilitate, administrate
and support your sales force and so the following applies to
those permanent staff. |
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