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I don't have one..but if you are going to offer commission on someone selling your products you just might want to talk to a CPA first..mine told me you have to pay taxes like comp/unemployement etc if you hire someone on commission..instead you should offer them stuff at wholesale cost maybe without the regular minimums.. totaly changed my mind about doing commission sales.:undecided

Just an FYI ...for ya.

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I don't have one..but if you are going to offer commission on someone selling your products you just might want to talk to a CPA first..mine told me you have to pay taxes like comp/unemployment etc if you hire someone on commission..

Just an FYI ...for ya.

Thats the first time I have ever heard that. Was that based on commission sales, or on a consultant plan? Just because someone is being paid commission, does not necessarily make them an employee. I doubt that HI, Avon, and others pay comp/unemployment. Interested to hear from those who have done so.

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This is what my cpa told me.. she said that if you pay anyone $$$$ then they are considered employee. BUT to get around that..they can get a biz license like they are a consultant..just like those who sell avon and Home Int..are SUPPOSED to do..which most don't..and then they would be buying from you wholesale.. so they would actualy OWN their own business. even with Avon you own your own biz..you are responsible for all apsects of the business...and for reporting YOUR OWN taxes etc. That is the difference between the two.

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The NON-commission would be..that is what she told me to do..contract people out..but they would buy at wholesale prices and have to have their own tax resale #

same as if you used a Temp agency to hire people..you don't pay the taxes and stuff you just pay the agency and they do all the work.:D

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I run a consultant program and you have to state in the consultant agreement that they are independent consultants of your company and therefore are not entitled to any type of taxes, unemployement etc. If you are thinking of opening a party plan type program you can visit www.dsa.org and request some free information from there. I have a CD with a sample agreement on it, let me see if I can get it saved to my computer and on here for you.

You do not have to pay taxes on any type of commission base as long as you state in your agreement that they are independent consultants (therefore owning their own business). You will have to file a 1099 if you pay out $600 and over in commission to one person or if they purchase $5000 or more in products durning a one year period. You can request those be completed in case you need them at the time the consultant signs up.

Hope this helps and if you have any other questions, feel free to ask. We have been running our consultant plan for over 2 years and have done lots of research with the dsa and our cpa.

Thanks,

Vanilla

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Hi,

Yes it will. This shows they are independent parties reselling your products for a commission and that they are not entitled to any type of unemployement, federal taxes etc.

If you have any other questions let me know! :)

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