Can I File a W-2 Form for Payments Made to a Commissioned Salesperson?

The short answer is, sometimes. The form that you file for commission payments will depend on how you classified a worker within your company. Did you hire an employee that earns a smaller salary and earns the bulk of their income through commission? File a W-2 form for payments made to them as a commissioned salesperson. Withhold taxes from the employee’s payment. Employers must remit the amount that they withheld on behalf of employees to the appropriate tax authorities.

Some of the individuals who work for your company only earn commissioned compensation. Do not file a W-2 form for these self-employed independent contractors. Contractors must remit the taxes through the proper channels. File 1099-NEC forms to any contractors who you paid $600 or more in commissions for the previous year.

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