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Commission sales persons considered as employees 043-03050020

This document outlines the factors which assist in making a determination on the nature of business of commission sales persons, and how income is assessed for those commission sales persons considered as employees.

Assessing commissions received by employees

Step	Action
1	Employed on a commission basis A customer advises they are employed on a commission basis to sell a product. Go to Step 2
2	Is the customer a real estate or insurance sales person? Yes, customer is regarded as an employee. Go to Step 6 No, go to Step 3
3	Contract of service Does the customer have a contract of service, that is, contract for labour? Yes, customer is regarded as an employee. Go to Step 6 No, go to Step 4
4	Control of work Does the person have little or no control or decision making regarding what work is to be done, how, when, where and what resources are to be used? Yes, customer is regarded as an employee. Go to Step 6 No, go to Step 5
5	Receive a payment summary? Will the customer receive a payment summary at the end of the financial year? Yes, customer is regarded as an employee. Go to Step 6 No, customer may be regarded as self-employed. For further information, see: Commission sales persons considered as self-employed Income for an independent contractor and commission income Factors to determine self-employment Income and expenses of a business Assets and liabilities of a business
6	Updating income For coding and assessment of commission income, see Income for an independent contractor and commission income. If the customer or partner receives Family Tax Benefit, run the Family Income and Choices workflow to record the customer's new estimate, if required, after completing the income update.