Hello Everyone,

I have a business in Texas and I am looking at hiring some outside help to set appointments. My initial thought with this was to have people work from home as contractors, set their own schedules and pay them a comisssion per appt set. However, upon further research I am not certain this is legal. I found the outside sales exemption, but as they would not be technically selling anything do not think this will apply. Can anyone help clarify this for me so I know how to structure this and be in compliance with the law? I prefer something comission based as I feel it is a good incentive.

Thanks for your help!
~S

If they can be classified as contractors, you don't have to worry about them being exempt outside sales reps and you can pretty much pay them any way that you and each rep agrees to.

In your case, I think the argument can be made successfully that these people will be independent contractors.

You are not not controlling when they work, where they work or (presumably) how they work. You set the goals you want them to accomplish and pay them for meeting those goals.

It will help greatly if you don't have to provide them with any equipment or training for them to carry out the job.

Thanks so much for your response to my question, ScottB. I'm new to all this and want to make sure I do things by the book. It's a little scary at first, but as I learn more things seem to be getting clearer. :)

~S

There is a pamphlet from the IRS (Publication 1779) that explains what makes a person an employee vs. an independent contractor for federal tax purposes:

http://www.irs.gov/pub/irs-pdf/p1779.pdf

Great Resource...thanks!