Questions about Form 1099-MISC

Q. What is the purpose of a Form 1099-MISC?
A. Payments to independent contractors such as independent distributors/Members are reportable per IRS guidelines on Form 1099-MISC.

Q. Who receives a Form 1099-MISC from Vemma?
A. Form 1099-MISC is issued to each independent distributor who has (1) earned at least $600 in commissions, or (2) made purchases/direct sales of more than $5,000 of products in a calendar year.

Q. Do I pay taxes on the amount on the Form 1099-MISC?
A. The 1099-MISC reports gross commissions relating to a Member’s Vemma business.  Members should consult their tax advisor for assistance in determining what business expense deductions are applicable to their business.

Q. What is the reported 1099-MISC amount based on?
A. The 1099-MISC amount can include gross bonus earnings, supplemental check calculations, commission adjustments for product returns, and any other payments applicable to income.

Q. How do Maintenance Fees charges affect the 1099-MISC amount?
A. Maintenance Fees are included in the 1099-MISC earnings.  They can be considered deductible business expenses.  Members should consult a tax advisor regarding these charges.

Q. Does the 1099-MISC amount equal the total amount paid on a Member’s commission checks?
A. No, Vemma Member commission checks are based on net earnings.
Example: Check amounts total $1,000.00. Maintenance fees total $50.00. Manual check recalculation of $25.00 that is placed as a credit on account. The 1099-MISC amount will be $1,075.00 ($1,000+$50+$25 – applicable gross earnings).

Q. What is the time period to report the amount on the 1099-MISC?
A. The time period of the reported amount on the 1099-MISC is from January 1, 2008 through December 31, 2008.  Please note that net earnings for the volume period of 51 and 52, 2007 were paid on January 2 and January 9 respectively and are included in the reported amount for 2008.  Net earnings occurring after December 12, 2008 are paid out in January 2009 and not included in the reported amount for 2008, but will be included for 2009.

Q. How did Vemma get the “Name” and “Social Security Number/Tax Identification Number” (SSN/TIN) for the 1099-MISC? 
A. “Name” and “SSN/TIN” presented on the 1099-MISC are information provided or represented to Vemma on the Member Agreement, through Sign Up by Phone/Fax, or via online sign-up through Vemma’s corporate website.  Commission earnings and checks were issued based upon the information provided and the 1099-MISC reflects the same Member information.

Q. Why did I receive more than one 1099-MISC?
A. If a SSN/TIN changed at some point during a calendar year (i.e. from personal ownership to a business entity); earnings will be reported under each of the appropriate SSN/TIN numbers.

Q. Will Vemma provide additional copies of the form 1099-MISC?
A. Upon written request of the Member, Vemma will provide a copy if the original was lost, stolen or destroyed.

Q. Will Vemma alter a data entry error of the SSN/TIN on the form 1099-MISC?
A. After verification of the Member’s original application, if Vemma determines that a data entry error occurred, Vemma will issue a corrected form 1099-MISC.  If a Member Registration Form is not on file, the Member must submit a completed Registration Form with a copy of their Social Security Card or tax identification documents.

Additional Contact Information:

Email: 1099@vemma.com
Telephone: 1-480-927-8959
Fax: 1-480-927-8901
Mail: Vemma Nutrition Company
8322 E. Hartford Drive
Scottsdale, AZ 85255
ATTN: 1099-MISC Form

 

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