What tax document do Commission-Only Sales personnel receive?

Commission-only sales personnel typically receive a Form 1099 for reporting their income, as they are often classified as independent contractors rather than employees. The 1099 form is used to report various types of income other than wages, salaries, and tips. This form is particularly relevant for individuals who earn money through commissions or self-employment, allowing the IRS to track income that does not come from traditional employment.

In contrast, employees receive a W-2 Form, which details an employee’s annual wages and the taxes withheld by the employer. Form 1040 is an individual tax return used to report personal income, but it is not the document received by commission-only workers for reporting their income. Form 1120 is for corporations and does not apply to individuals, particularly those working on a commission-only basis. Hence, the use of Form 1099 is the appropriate choice for documenting the income of commission-only sales personnel.