What do "1099" personnel represent in a sales context?

In a sales context, "1099" personnel refers to independent contractors or freelancers who are hired to perform specific work or provide services to a company. These individuals are typically classified as commission-only sales personnel, meaning they receive compensation based on the sales they generate rather than a regular salary or hourly wage.

This classification comes from the IRS tax form 1099, which is used to report income earned by non-employees. Companies do not withhold taxes from payments made to these contractors; instead, the contractors are responsible for reporting their income and paying their taxes at the end of the year.

Unlike full-time employees who receive salaries and benefits, or temporary workers who may be hired for a short duration, 1099 personnel operate with more flexibility and are often incentivized to maximize sales through commissions. This structure allows businesses to manage costs related to payroll taxes and benefits, making it an appealing option for many sales teams.