Sales reps will receive a 1099-Miscellaneous showing your commission earned for the previous year IF you had $5000 in total sales and received more than $600 in commissions. This form will be sent before the end of January each year.
Find your 2022 total sales by clicking the Annual Sales Report Icon.
As a sales rep for Alison’s Pantry, you are considered self-employed and are responsible for paying your self-employment taxes each year by filing a Schedule C for your AP business.
**Alison’s Pantry is not a tax consultant. As with any financial advice, please consult your tax advisor or accountant for the most current and up-to-date information.**
Keeping accurate records is a must for your business.
Here are some expenses that you may be able to deduct from your taxes:
- Telephone / cell phone costs
- Internet Services
- Mailing cost of catalog
- Office Supplies (paper, ink cartridges, staples, paper clips, tape, etc.)
- Food Samples
- Computer and software supplies
- Freezers used to store Alison’s Pantry products
- Mileage for meeting truck for delivery, delivering catalogs and products to customers, picking up supplies, etc. Download the Mileage Log here.
- Gifts and prizes given to customers for referrals, contest prizes, customer appreciation, etc.
- Restaurant meals and entertainment (if business is discussed) are 50% deductible.
- According to Bernard B. Kamoroff, CPA, in his book 422 Tax Deductions for Business and the Self-Employed Individual, he states that it is perfectly legal to add your school-age children to your payroll, hiring them to do real jobs and paying them up to $6,300.00 per year (this may have changed, so check with your tax advisor). You can write off their wages as a business expense; they keep the funds earned and do not have to file a tax return.
The first part of this webinar is an interview with a tax consultant where he goes over some ideas on how to get the most out of your AP business and taxes.