Discussion:Are Spiff (incentive) Payments Subject to SE Tax?
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Discussion Forum Index --> Advanced Tax Questions --> Are Spiff (incentive) Payments Subject to SE Tax?
Discussion Forum Index --> Tax Questions --> Are Spiff (incentive) Payments Subject to SE Tax?
| 24 September 2008 | |
| Client is a manufacturer who makes incentive payments to employees of dealers (Best Buy, for example) who sell their product. Their competitor does the same, but includes the payments on Box 3 of 1099-MISC, NOT subject to SE tax. My client believes the payments are subject to SE tax and belong in Box 7. Does anyone have any experience with this?
Based on a literal reading of the 1099-MISC instructions, I believe box 7 is correct. | |
| 24 September 2008 | |
| Believe it or not, there is an IRS Publication on this. Box 3 is the correct box. | |
Death&Taxes (talk|edits) said: | 24 September 2008 |
| I think this discussion will give the links: Discussion: W-2 employee receives 1099 for SPIFF award -- SE tax? | |
Me and the Boss (talk|edits) said: | 24 September 2008 |
| I was surprised by this one a couple of years ago. New car salesman received Spiff bonuses based on units sold. Reported on 1099-MISC in Box 3. I'm thinking it has to be commissions subject to SE Tax, but Ford Motor Co included a blurb with the 1099 saying no SE. Checked it out just to be sure, and that is the way it is. Those car salesmen get all the breaks! | |
| 24 September 2008 | |
| the yellow search box holds all answers, great and small | |
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