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.
Sales reps will receive a 1099-Miscellaneous showing your subtotal sales and 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.
If you’d like to view your 1099 online please go to www.viewmyforms.com and login with the email you use for your Alison’s Pantry dashboard to create an account.
Your 1099 has your total sales for 2018 and the amount you made in commission.
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.