Connecticut Pay Per Click Services Agreement

State:
Multi-State
Control #:
US-02102BG
Format:
Word; 
Rich Text
Instant download

Description

In a pay per click agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include per-click advertising networks, search engines, and affiliate programs.


In the PPC model, the publisher does not have to worry about the sales conversion rate of the target site, and the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks.


Pay per click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.


Cost per click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website.


In a PPC agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include per-click advertising networks, search engines, and affiliate programs.


Paying per click is sometimes seen by some as a middle ground between paying per impression and paying per action. When paying per impression, the advertiser assumes the risk of low-quality traffic generated by the publisher. When getting paid for actions, the publisher assumes the risk of low-converting offers by the advertiser. In the PPC model, the publisher does not have to worry about the sales conversion rate of the target site, and the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks.

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FAQ

Advertising and public relations services are subject to Connecticut Sales and Use Tax when the benefit and use of the service occurs in this state regardless of the place of business of the service provider or the place of business of the client.

Tax Structure Business management and consulting services are subject to Connecticut sales and use taxes if the services apply to core business activities or human resource management activities (CGS § 12-407 (a) (37) (J)) and Conn. Agencies Regs.

Connecticut law imposes a 6.35% sales tax on all retail sales and certain business and professional services (CGS § 12-408). Business and professional services in Connecticut are presumed to be exempt from the state's sales tax unless specifically identified as taxable by state law.

Several exemptions are certain types of safety gear, some types of groceries, certain types of clothing, children's car seats, children's bicycle helmets, college textbooks, compact fluorescent light bulbs, most types of medical equipment, and certain motor vehicles.

When it comes to sales tax, the general rule of thumb has always been products are taxable, while services are non-taxable. Under that scenario, if your business sells coffee mugs, you should charge sales tax for those products.

Are services subject to sales tax in Connecticut? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Connecticut, specified services are taxable.

A contractor's labor is not subject to sales or use tax if performed in conjunction with new construction (with some exceptions), owner-occupied residential property (with some exceptions. Overall, from a sales tax compliance perspective, Connecticut is a fairly easy state in which to comply.

Food products sold through coin-operated vending machines, meals delivered to the elderly, disabled or homebound, and purchases made with supplemental nutrition assistance program benefits also are exempt from tax. Conn.

Advertising and marketing costs must be ordinary and necessary to be tax deductible. An ordinary expense is one that is common and accepted in the industry.

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Connecticut Pay Per Click Services Agreement