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Old 02-06-2005, 03:52 PM
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Join Date: Feb 2005
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1099-misc For Manufacturer Spiff Checks


What is the name of your state?What is the name of your state?Pennsylvania

I am an in-house customer service/sales person for a wholesale distributor. I am in no way self employed.
Some of the manufacturers of the products we sell occasionally run promotional programs called "Spiffs". They use these to promote products.

IE: ABC Glassware is running a Spiff this month for their new ten ounce wine glass. For every order of fifty dozen glasses or more ABC Glassware will pay the sales person .50 cents for every dozen. If I sell this many glasses, I fill out a spiff form and attach the invoice from the sale and send it in. Eventually a check shows up in my mailbox from that manufacturer with no taxes taken out of it.

AT the end of the year these manufacturers send 1099-misc forms all using line 7.

In turbo tax I have three options for this money. Self-employed business, Farm Wages, or Wages.

This money is more like a prize than anything. You never know when they will run them or for how long or on what products.

If i fill it out as wages, which seems the best choice, it taxes me social sec and medicare tax. Which is ok, except that this income is never shown on my social security statement even though I am paying SS taxes on it.

It's obviously not farm income.

If I fill it out as Self Employed income the tax is SUBSTANTIALLY MORE than just paying the SS and Medicare tax on a wage. I don't really think this bonus program that I have no control over should make me pay self employment taxes.

What is the right thing to do?
HELP! Thanks
Brente222
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