Independant sales person?

Question

If I employ a sales person on a commission only basis to approach new businesses with my products, what are my liabilities with tax etc. I know that RE and Pharm. agents work in this way, is it open to all businesses?

Answer 1

They would likely be classified as an independent contractor. If they made over $600 for the year, you'd be responsible for providing them with a 1099 at the end of the year, and reporting this to the IRS.