# Being paid commission as 1099



## samf245 (Apr 28, 2017)

Hey everyone,

I am pastry chef.  Currently I am being paid hourly as pastry chef for a local coffee shop doing pastries.  Before going on maternity leave the owner and I agreed on me moving to be an independent contractor for them providing pastries for them and picking up wholesale business doing the same.  We are getting ready to make the change and have a meeting to agree upon pricing.  Basically I work out of the same space.  He pays for supplies/invoices (flour, butter etc) and he pays me for product.  Now I am starting to freak out because if I dont pick up other clients my pay will be like $600/month.  heres some numbers to give you a better idea

we sell a plain croissant for $3. It cost me $.34 to make one.  He mentioned something like 'a buck a croissant' for me.  

I was thinking of having MY price be based on the retail sale.  Like a Sarah Cost of 38% retail.  

So 38% of a $3 croissant is $1.15.  Chocolate Croissant ($3.50 retail $1.33 Sarah Cost)

So my question is: Does this make sense? Is it fair and reasonable?

My schedule is like this so I can work and be home with my son for the day after my husband goes to work.

Thoughts/Concerns/Advice????


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## chefbuba (Feb 17, 2010)

You need to look up the definition of an independent contractor on the IRS website. 
If he has Any say in what or when you do your job it won't meet the smell test. Seems like he's just trying to dodge payroll taxes and workers comp..


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## samf245 (Apr 28, 2017)

I have. And I understand. He's been very hands off about my production and schedule. He's actually brought up a few good points about getting more out of my time based on my production bc I have a limited schedule. I guess it's more of a question of is My price reasonable? Is my way of going about getting my price make sense


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## halb (May 25, 2015)

> Basically I work out of the same space. He pays for supplies/invoices (flour, butter etc) and he pays me for product. Now I am starting to freak out because if I dont pick up other clients my pay will be like $600/month.
> 
> And I understand. He's been very hands off about my production and schedule.


That's good but you still would come come under the IRS radar. You need to order and pay for your own supplies. And you definitely have to have other clients besides him. You also need to have your own company set up- (sole proprietor, LLC, sub S) with insurance, tax ID, - whatever is required where you are operating.


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## halb (May 25, 2015)

I forgot to add that you need also to be paying him to either lease or rent the space you need.

I forgot about your original question on pricing. After you take all of what you have to do to be a legal independent contractor then you need to do the numbers to see what volume you need to produce and what you need to charge to make a profit. My suspect that it will he who will be making a few cents on each croissant.


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