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Independent Contractor or Employee?
                       
As this is a particularly important issue for Direct Sellers the Inland Revenue Department puts out an excellent guide to help with this issue. The leaflet "Self-employed or an employee? (IR 186) provides a check list and the most of the same information is provided in a summarized form in their Employers Guide (IR184) These forms are availeble from the IRD web site
Direct Selling Companies need to ensure your Distributors/Independent Contractors/ Agents or Salesperson agreements clearly set out the Independent status based on the IRD definitions to prevent later problems.
You will need to look at the Fringe Benefit Tax implication if you reward by Bonuses, overides and commissions where ownership of a product does not pass to the distributor/Agent/Independant Contractor. Please also read our Fringe Benefit Tax Page on this.
The Direct Selling Booklet (PDF 65k) published by the IRD in conjunction with the DSA will help with this requirement As a Direct Selling Company it is highly likely that you will employ some Permanent Staff to manage, facilitate, administrate and support your sales force and so the following applies to those permanent staff. 
                       
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