Contractors and commission sales persons 043-03050000

This document outlines the procedures for determining the nature of employment for customers who are involved in contracting businesses or receive commission income.

Determining if a contract or commission sales person is self-employed or an employee

In most cases, it will be quite straightforward to determine if a person is running a business (for example, owner of a corner store) or is an employee (for example, shop assistant).

It is more difficult to characterise the employment relationship for independent contractors (for example, carpenters) and commission sales persons. This can be difficult as obvious differences between being self-employed or an employee are not always evident. Each employment situation should be looked at on its merit using the guidelines in the following procedures before a decision is made.

Contents

Commission sales persons considered as self-employed

Commission sales persons considered as employees

Income for an independent contractor and commission income