Employment Law Questions? Ask an Employment Lawyer.
Online job posting states: Compensation will be strictly commission based and the candidate will be responsible for covering all expenses. Employer is willing to cover expenses up to a determined amount for the first six (6) months while the representative is getting established. Employer is in Texas. Job Title says: Outside Sales Representative. Job Type: Full-Time Territory: Texas Attendance once per month for sales meeting approx. 3 hours driving each way. Responsibilities: Service existing accounts and create new accounts increasing sales. Need to know what to ask in interview, what type contract, suggestions what to look for to have understanding what tax laws I need to be aware of. I am acquainted with product to be sold. Thank you very much. Response: You need to ask whether you would be classified as Independent Contractor or an an Employee. That is whether you would be completing a Form W-4 or W-9. In the first, the Employer would be responsible for withholding taxes from your Commission and then furnish you with W-2 by January 31 of next year and also report the information to the taxing authorities. In the later, no taxes are withheld; you would be responsible for making sure at the end of the year that you have paid your taxes. The employer would issue you a form 1099, which would also be furnished to the taxing authorities. You would ask whether you would be signing an employment agreement as Independent Contractor or an employee; Whether the six months payment of expenses would be put in writing—you want this to be in writing to bind the employer. Otherwise, once you start, the employer can rescind the promise to pay giving you no avenue to hold the employer liable for breaching the promise; Whether you would be paid for the monthly sales meeting; Do not buy any suggestions that things are okay without being put in writing. Remember if you do not have it in writing, the employer can renege on the promise and you would not have any legal recourse against the employer. So, any agreement should be put in writing for your protection.
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