hiring commision only salesman
I am a small business owner out of Pennsylvania, I am looking to open up a sales department. My plan is to hire commission only salesman, I need to know what my responsibilities are, what am i liable for if anything? Do i need insurance for them or since they will be considered a sub-contractor, do they provide their own insurance? If you can please send me all the information i may need in order to get this process moving. Thank you very much.
5 answers | asked Apr 4, 2008 09:20 AM [EST] | applies to Pennsylvania
Answers (5)
Hiring independent contractors requires consideration of tax, liability and benefits issues.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 1:48 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 1:48 PM [EST]
Hiring independent contractors requires consideration of tax, liability and benefits issues.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 1:13 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 1:13 PM [EST]
Hiring independent contractors requires consideration of tax, liability and benefits issues.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 11:00 AM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, there are a wide array of issues you need to be aware of when hiring independent contractors; such as (1) whether the IRS will consider them contractors or employees, (2) what your benefits plans define as 'employees' and whether they cover contractors, (3) whether they would be considered 'contractors' for the purposes of unemployment, workers' compensation and state taxes, (4) whether you need noncompetition agreements (which are harder to enforce against contractors in certain circumstances), (5) whether and to what extent they travel for work (which implicates other insurance and liability issues) and (6) whether hiring 'independent contractors' will actually result in higher end costs to you. An error in classification could expose your business, and you personally, to compensatory damages, punitive damages and attorneys' fees liability.
There are a number of factual issues surrounding your question that are related to the industry you are in, the business you conduct and the work each specific sales 'contractor' is providing. Without that information, no attorney could answer your questions competently.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Apr 4, 2008 11:00 AM [EST]
commission-only salesmen
You must be wary about misclassification of employees as independent contractors. The IRS and Pa. Workers' compensation may impose penalties if independent contractors are misclassified. Answers to the other questions you pose depend upon the correct analysis of the issue of whether the salespersons are employees or bona fide contractors. I can schedule a consultation for a fee to review the details of the proposed services you seek from the salespeople. Doris Dabrowski, 1500 Walnut St., Philadelphia, Pa. 215-790-1115.
posted by Doris Dabrowski | Apr 4, 2008 09:39 AM [EST]
You must be wary about misclassification of employees as independent contractors. The IRS and Pa. Workers' compensation may impose penalties if independent contractors are misclassified. Answers to the other questions you pose depend upon the correct analysis of the issue of whether the salespersons are employees or bona fide contractors. I can schedule a consultation for a fee to review the details of the proposed services you seek from the salespeople. Doris Dabrowski, 1500 Walnut St., Philadelphia, Pa. 215-790-1115.
posted by Doris Dabrowski | Apr 4, 2008 09:39 AM [EST]
Do you plan to work for free?
My first advice to you is to make sure that you secure workers compensation insurance for these employees. Whether YOU designate them 'independent contractors' or not may not be dispositive of whether they are if something happens to them.
As to the rest of your inquiry, I assume that it is your intention for your business to be a money making enterprise, not a charity, and not a non-profit.
So with all due respect, it appears to me a bit unreasonable for you to seek out 'free' legal advice to set up your business.
If you are cheap now, you will buy expensive problems down the road.
You can get all kinds of information on setting up a business at the Federal Small Business Administration and the Commonwealth of Pennsylvania web site. In addition, local chambers of commerce can provide you assistance.
Good luck in your new endeavor.
posted by Harold Goldner | Apr 4, 2008 09:33 AM [EST]
My first advice to you is to make sure that you secure workers compensation insurance for these employees. Whether YOU designate them 'independent contractors' or not may not be dispositive of whether they are if something happens to them.
As to the rest of your inquiry, I assume that it is your intention for your business to be a money making enterprise, not a charity, and not a non-profit.
So with all due respect, it appears to me a bit unreasonable for you to seek out 'free' legal advice to set up your business.
If you are cheap now, you will buy expensive problems down the road.
You can get all kinds of information on setting up a business at the Federal Small Business Administration and the Commonwealth of Pennsylvania web site. In addition, local chambers of commerce can provide you assistance.
Good luck in your new endeavor.
posted by Harold Goldner | Apr 4, 2008 09:33 AM [EST]
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