Commission based payments

[Shade]

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Hello! I’m new to flying solo so please bear with me if this is a stupid question.

I provide barista services wherein I operate a coffee machine, serve people, take money and sometimes drive the van.

With one client, I’m being paid a percentage of the day’s takings as opposed to a set hourly rate or pre-arranged sum. In this case, I work three hours and in that three hours I make x amount of dollars and whatever that may be I get 15% of it. Of that 15%, I have to pay my tax and maybe super.

I don’t pay any expenses or insurances or anything -that’s taken care of. All I do is show up (with a professional attitude of course ) and do my thing. The principal puts my ABN number against the cut he gives me. There is no contract in place.

Thing is, how do I work this? When I do the sums I’m a bit lost.

Thanks.

[McAdam Siemon]

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Hi Shade,

Bit unsure on what you are exactly asking can you elaborate? You get 15% of the daily takings, and as such this is your income. You will pay tax in this at your nominal rates and need to keep this aside?

Not quiet sure what Sums you are refering to?

Thanks

[Shade]

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The 15% represents my income. This means I will pay tax from this at my nominal rates and therefore will need to keep this aside.

I’ve since been advised that this isn’t lawful since under law I’m deemed an employee as I am not using my own tools and that the owner should be dealing with PAYG, not me.

Ah, confusing indeed!

[peppie]

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I’m a bit hazy on the current situation as to the law, but it seems to me you are either a casual employee (in which case laws applying to employment apply) or you are a contractor. The difference may depend on just what sort of work/expertise you are supplying.

You do absolutely need a clear idea of what your working arrangement is though. Because further down the track your “employer” is likely to ask you to do more for the same pay, “because … is sick and I am in a jamb” etc. etc.. If you are supplying a distinct service/skill (such as you are an expert barista coffee machine operator and he is sub contracting you to provide that service) then you could make an agreement with him that you are a contractor on an agreed rate. Whether that be a flat rate or commission, just make sure your expenses are covered and you get a reasonable income from it.

It sounds like you need some business advice though. You could try your local Business Enterprise Centre, they have various help programs for small business and some are sponsored by the government.

[Burgo]

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almost a subcontractor.

in the selling game commission is often the norm in retail usually award wage based.

depends if your happy with the arrangement otherwise seek somewhere else to work your butt off in for perhaps less $.

could be done as an incentive the harder you work the more you earn theory

these are my thought anyway

[Author]

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