For those of you who have worked for this MSC, do they combine your fee and reimbursements as one total at year end? Marketforce, for example, reports fees and reimbursements for meals/groceries separately at year end. Reimbursements are not earnings. I just started shopping for CRI (when they're not paying peanuts), so I was wondering how they handle year-end reporting.
Edited 1 time(s). Last edit at 01/10/2012 06:08PM by marg704.
The correct way is for a company to send you a 1099 for FEES earned over $600. This is exclusive of reimbursements. So if you were paid $599 in fees and bonuses you should not expect to see a 1099 even if you were paid $599,000 in reimbursements. Most shoppers in their first year will not receive 1099s at all because most won't earn $600 in fees from a company. Most of the companies I work with pay me less than $600 in fees per year so I will receive 1099s only from those where I earned more than that.
Remember that fees are taxable as income to your business whether you receive a 1099 or not and they are unlikely to match your records unless you began and ended work with a company in the calendar year and by 12/31 you had received all payments due. Do not worry about small discrepancies between your records and the 1099s but do question substantial discrepancies. One company last year decided to report both fees and reimbursements as income (reimbursements are not taxable income to you) while another company came up with numbers that were thousands of dollars off.
As for what CRI specifically does, I couldn't say. I have never done $600 worth of business with them in a year.