THIS WEEK’S TIP: TAXES
When you became a Stampin’ Up! demonstrator, you signed an Independent Demonstrator Agreement. By doing so, you agreed to a number of provisions that defined your relationship with Stampin’ Up! as that of an independent contractor. But what does that mean?
An independent contractor is a self-employed business professional. As such you are responsible for the following:
>>> Paying taxes or duties required by law (such as income tax) and the proper reporting, submission, and payment of tax on sales and bonuses
>>> Paying all business and self-employment expenses
>>> Arranging life and medical insurance, if desired
The independent relationship between yourself and Stampin’ Up! also means that you are not considered an employee of Stampin’ Up! and will not receive any employee-related benefits. You will also need to keep your own financial records to determine your applicable income taxes. Stampin’ Up! will NOT provide you with an annual earnings report of the earnings made from your Stampin’ Up! business (unless you make over $600 in reportable income in a year, in which case we’ll issue you a tax statement). Since you are not an employee of Stampin’ Up!, there will be no tax withholdings made on the volume rebate and override commissions paid to you. You are responsible for reporting your business earnings and expenses on your tax return. You may want to consult with an accountant.
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