We have two Sales/Engineers who have been also acting as territory reps (all other reps are independent reps). Because this is still sales and is their primary employed function we can not do commissions on a A/P & 1099 basis...the government really frowns on this because they are "employees" and not independent. So their commissions are added via payroll seperate from their salary....same as a bonus other other non-standard pay.
On the other hand our tool room manager (who is an excellent carpenter) built a huge wood deck outside the owner's office as an "after hours" project and the pay for that it WAS via the A/P & 1099 route...because this is not his normal job and he worked totally independently of any company managerial supervision.
But the key is how it relates to their normal job function and in the case of a sales person brought on to the payroll I think you really must pay the commissions via payroll or incur the wrath of the IRS.
-Todd C.
-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]On Behalf Of Jeni Wilson
Sent: Tuesday, November 07, 2006 2:47 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Sales Reps
Does anyone currently have a sales rep that is on your payroll and not
paid through a/p? We have used one that is paid monthly upon payment of
the customer invoice and is given a 1099 at year end. But we are
thinking about hiring one on our payroll and I would like to know what
others have run into both pros and cons before someone is actually hired
and I end up having to track things manually.
We are currently running 6.10 but are looking at going to 8.03 in 2007.
Thanks
Jeni Wilson
Boyer Machine
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
On the other hand our tool room manager (who is an excellent carpenter) built a huge wood deck outside the owner's office as an "after hours" project and the pay for that it WAS via the A/P & 1099 route...because this is not his normal job and he worked totally independently of any company managerial supervision.
But the key is how it relates to their normal job function and in the case of a sales person brought on to the payroll I think you really must pay the commissions via payroll or incur the wrath of the IRS.
-Todd C.
-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]On Behalf Of Jeni Wilson
Sent: Tuesday, November 07, 2006 2:47 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Sales Reps
Does anyone currently have a sales rep that is on your payroll and not
paid through a/p? We have used one that is paid monthly upon payment of
the customer invoice and is given a 1099 at year end. But we are
thinking about hiring one on our payroll and I would like to know what
others have run into both pros and cons before someone is actually hired
and I end up having to track things manually.
We are currently running 6.10 but are looking at going to 8.03 in 2007.
Thanks
Jeni Wilson
Boyer Machine
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]