Overview
All Surge members operate as independent contractors. This means you are responsible for reporting your own income, tracking expenses, and paying any applicable state or federal taxes. This article outlines what you need to know about tax documentation, compliance responsibilities, and maintaining accurate records.
Independent Contractor Status
All Scouts, Strategists, and Mentors are classified as independent contractors, not employees of Surge.
This status provides flexibility and autonomy, but it also means you are personally responsible for managing your tax obligations, including:
Federal and state income taxes
Self-employment taxes
Estimated quarterly tax payments (if applicable)
Surge does not withhold taxes from commissions or bonuses.
Form 1099-NEC
Annual Reporting
Each year, Surge issues a Form 1099-NEC to any member who earns $600 or more in commissions, overrides, or bonuses during the calendar year. This form reports your total gross earnings paid through the Surge platform.
Delivery
1099s are typically issued by January 31st for the prior tax year and are delivered electronically to the email address on file in your member profile. You will receive an email notification when your form is available for download.
Updates to Tax Information
To ensure proper delivery of your 1099, keep your account details accurate and up to date. If your legal name, business name, or address changes, update this information under Settings → Billing in your dashboard.
Tax Deductions and Record-keeping
Recommended Practices
As an independent contractor, you may be able to deduct certain business-related expenses, including:
Marketing and advertising costs
Office supplies and equipment
Business travel, mileage, or event expenses
Membership fees and continuing education
Software or CRM subscriptions
Consult with a licensed accountant or tax advisor for guidance on which deductions apply to your specific situation.
Record Retention
Keep detailed records of:
Income received through Surge
Receipts and invoices for deductible expenses
Copies of signed client agreements and contracts
Bank statements related to commission deposits
Maintaining accurate documentation is key to preparing your annual tax return and protecting yourself in case of an audit.
Compliance with Laws and Regulations
All Surge members must comply with applicable tax, labor, and business laws in their jurisdiction. If you operate under a registered business entity (LLC, S-Corp, etc.), ensure your company is in good standing and up to date with state filings.
Members who repeatedly fail to comply with tax or legal requirements may have their accounts suspended until compliance is restored.
Support and Assistance
While Surge cannot provide individual tax advice, we can assist with:
Accessing or reissuing your 1099
Updating your W-9 information
Confirming total earnings or payout reports for your accountant
For help with tax documents or reporting questions, contact [email protected].
Summary
Topic | Key Information |
Contractor Status | All members are 1099 independent contractors |
Tax Form | 1099-NEC issued for $600+ in annual earnings |
Delivery Date | Sent by January 31st each year |
Deductions | Members may deduct qualifying business expenses |
Recordkeeping | Maintain detailed income and expense documentation |
Support | Contact [email protected] for form or reporting assistance |