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Do you have to pay back 1099 tax year filed income if your contract states that upon termination the draw amount that exceeds commission earned must be repaid?
If I understand the information in the question correctly - - You are an independent contractor who was paid more in draw than you earned in earned commissions . . . you were terminated and your ex-employer is holding you to the terms of your contract which states that the unearned portion of your 'draw' must be paid back.
If that is the case, you must abide by the terms of the contract. If it calls for paying the ex-employer back you must do so or risk being sued and taken to court.
If all this is true, YOU, in turn, can file an amended tax return with the IRS documenting your lowered reported income (and the reason for it). The IRS will re-calculate your taxes and refund you any overpayment based on the new (and lower) adjusted income.
CAVEAT: I am not a tax man - just "Joe Taxpayer." Be sure to speak with a tax adviser for advice and to confirm anything said here.
The above was a good attempt by a non-tax guy on a confusing question!
But the key is you said you were paid by 1099, therefore you are NOT an employee. You are an independent contractor and taxes are NOT withheld for you. FICA tax is paid entirely by you - but more on the net earnings of your business - NOT the business receipts which is effectively all a 1099 reflects.
You may well have included some payment toward your FICA "self employment tax" and Income Tax needs in your quarterly estimated payments that are based on your best estimates and required in lieu of withholding, but when you do your year end accounting and actually determine the correct amount of taxable income from the business (the return of the overpayment being an expense lowering income) of each type you made, the corresponding tax is either due or refunded.
What else can I help you with?
How much commission does a salesman make?
The amount of commission earned by a salesman depends on his contract, and the number of sales he makes under that contract. As such, the answer to this question is case specific.
What is a business voip and what does it do?
A business voip lowers the amount of cash you have to pay. Also, there are no fees for anything, including contract or termination fees. Customer service is good too.
What taxes must be paid if you surrender your life insurance policy?
The short answer is, unless the amount of cash value in the contract exceeds the amount of premiums paid into the contract, no taxes will be due.If the policy is a "MEC", then taxes will be due."MEC's" occur when a policy is paid for with a one time, lump sum premium.
How much does a home interiors sales person make?
In many cases, home interiors sales people work on a commission. The amount of money you take home depends mainly upon how much effort you put into this job. At other times, you make pull a "draw" against commission, meaning that you would have a fairly constant income level to depend upon ... however, once you make a sale, the commission for that goes to pay for your "draw". You cannot take a "draw" and keep your commission, too, that is unless your commission exceeds the draw amount.
Payment of Gratuity in case of termination?
In case of termination, an employee may be entitled to gratuity based on the terms of their employment contract or local labor laws. It is important to review the specific circumstances of the termination and consult relevant regulations to determine if gratuity should be paid and at what amount. Typically, gratuity is calculated based on the employee's length of service and last drawn salary.
What is termination of a contract?
Kabir made an agreement with Simon on a specific subject matter. Later Simon made a change in the amount of money to be paid the time of payments the place of payments the names of the parties etc. without the consent of kabir whet will be the result? Explain Mr. Jabir is a businessman. He agreed to sell to mr. Shafer specified sacks of paddy in a go down. Before delivery the paddy was requisitioned by the food ministry power. What will be the result? explain
Draw against commission?
A draw against commission is an amount of money advanced against amounts you are expected to earn in future commissions. This arrangement can be very beneficial as it helps smooth the cash flow of a person paid on commission. When commissions are earned, the amount you have drawn is deducted and you are paid the balance of the commission. For example: Salesperson Depending on the way your draw contract is written you may end up responsible for repayment of any excess draw when you leave your position. Often, though, your liability is limited. When entering into a draw contract, as in any contract, you should be certain that you understand the terms and conditions to avoid complications later. A draw against commission is an amount of money advanced against amounts you are expected to earn in future commissions. This arrangement can be very beneficial as it helps smooth the cash flow of a person paid on commission. When commissions are earned, the amount you have drawn is deducted and you are paid the balance of the commission. For example: Salesperson accepts draw of $400 per week for 3 weeks before earning commission of $1500. The commission paid would be $1500 - (3 x 400) or $300, so the salesperson's benefit would equal the entire $1500. Depending on the way your draw contract is written you may end up responsible for repayment of any excess draw when you leave your position. Often, though, your liability is limited. When entering into a draw contract, as in any contract, you should be certain that you understand the terms and conditions to avoid complications later.
Is a percent amount that a salesperson makes for a sale?
A percentage commission. Commission can also be a flat rate commission - a fixed amount for every sale.
How does a realtor get paid for rental transactions?
A realtor typically gets paid for rental transactions through a commission, which is a percentage of the total rent amount paid by the tenant. This commission is usually agreed upon in a contract between the realtor and the property owner or landlord.
What amount can you get for wrongful termination claim?
There is no limit on the amount you can get for a wrongful termination claim if you win. The company will more than likely want to settle out of court to avoid bad publicity for the company.
Amount you are paid based on amount you sell?
Commission
How do you find the total money amount made when you are given a percent commission and a dollar amount?
Multiply the dollar amount by (1/100) of the percent commission.
