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Want to hire sale people, GREAT
Talk to your Accountant
Would these employees be considered Direct Sellers? (see IRS Pub. 911 for a definition). If so, then you could avoid some federal withholding hassles. If they are employees, however, you'll have to withhold federal taxes (see IRS Pub. 15).
Unlike the IRS, your state recognizes a difference between temporary and permanent employees as far as unemployment taxes, workers comp, withholding for child support, etc. Visit your state Department of Commerce website and search the Small Business -- Regulatory Compliance topics to see what requirements you'd have to meet.
Hope that helps. Best wishes.
I agree with Lighthouse -- I only hire 1099-Misc people (Independant Contractors). When you do this you need to gather some information from the person on the W-9 form. You pay them and if they make less than $600.00 commission a year they don't have to claim this on taxes but if they make more they are required to file their own taxes. You are not required by federal government to collect or remit taxes on 1099-Misc "employees" they are simply contract labor. They have to claim their own taxes.
I hope that this helps. You can also call me if you have further questions or you can email me.
The reason I know this much is because my uncle is a CPA and I asked him about it as well.
EZ Travel Planner, LLC
(800) 405-1411 x101
First do not misclassify employee (w-2) and contractor (1099). Generally, if you supply them with equipment and govern their schedule...they are an employee. You can still put them on a commission w-2.
We can help you find targeted sales people. By targeted, I mean we sift through resumes, review qualifications, interview candidates, and verify interest in your position all for $995 or less per position. We'll send you 5-10 qualified candidates for each position. Hire one or all ten......it's all the same to us. It's easy to do the math. If you hire all 10 candidates, your cost per targeted hire is less than $100 each. It's an unbeatable, unbelievable proposition, but it's true.
Check out our website: www.talenthog.com or give me a call - 877-577-HOGS x703.
Let me know if we can help,
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I would like to hire some sales people in illinois, I'm a start up company so there is no benifits from me and it only a straight commissioned based pay. I dont want to make them sub contract employee's since the gov is starting to crack down here on that and dont need an aduit. but i will provide them with buisness cards and promotional matierals and they will be selling under my company's name. From what i have read by doing it this way they are considered employees at will but what would i be responsile for? would i have to take out taxes from ther comission? would i have to also get workmens comp ins? ETC. need alittle help here with this.