Short answer: a 1099 job means you’re an independent contractor, not an employee. Nothing is withheld from your pay, so you handle your own taxes. Most door-to-door sales jobs, including fiber, are set up this way.
1099 vs. W-2 in one minute
| 1099 contractor | W-2 employee | |
|---|---|---|
| Taxes taken out of pay | No | Yes |
| Social Security and Medicare | You pay both halves (self-employment tax) | Split with the employer |
| How you’re paid | Usually per deal or per job | Usually hourly or salary |
| Control over your schedule | More | Less |
Taxes: the part that catches new reps
- Set money aside from every payout. It feels like a raise when nothing is withheld. It isn’t. Put a chunk of each check in a separate account for taxes.
- You may need to pay quarterly. The IRS generally expects estimated tax payments during the year if you’ll owe $1,000 or more.
- Report everything you earn, whether or not you get a tax form for it.
Keep records from day one
- Every payment you receive
- Miles you drive for work
- Work costs like your phone and supplies
Some work costs may be deductible. A tax professional can tell you what applies to you.
Questions to ask any 1099 sales company
- What does each deal pay, and when do I get paid?
- What happens to my pay if a customer cancels?
- Is anything taken out of my pay, like housing or equipment?
- Do I need my own car and phone?
How it works at Pink Team
Pink Team reps are 1099 independent contractors. Every deal pays $150 to $350, with no cap. On blitzes, housing is fronted and the cost comes out of your commissions. See pay and training for the rest.
This guide is general information, not tax or legal advice. Talk to a tax professional about your situation.