Home – New Forums Starting your journey pay salesperson commission only – legale? Reply To: pay salesperson commission only – legale?

#1037153
John Debrincat
Member
  • Total posts: 963
Up
0
::
adykacen, post: 44865 wrote:
I am opening a retail kiosk for cosmetic products in SA. In this field it is custonery to pay salespersons only commission (inb most of the world) as an incentive.

However, I am not sure that it is legal to pay in that way…

My salesperson don’t have skills, and I am giving them all the training they need in oreder to become good salesperson.

So, to sum it up, I have to pay minimum wage? if yes, so how much?
Is it legal to pay commision only?

and what about non-citizens (backpackers with working holiday visa, forigner students?)

Its legal if they are not working full time, have other jobs and you pay them as a company or sole trader (i.e. they give you an invoice).

If they are working full time or only for you then you will potentially run into tax issues for PAYE. If they are not GST registered or don’t have a valid company and you pay them based on an invoice you may need to withhold GST.

If they really are employees, even casual or part time, you would be safer to pay a base at the minimum wage level and then commission. You will still have to do a PAYE payment for their tax and the superannuation contribution to a super fund.

You can find lots of information at Fair Work Australia

John