I have 2 employees. I plan to 1099 both. The 1st employee will be paid comm. Only based on production. The 2nd employee I will pay base salary plus comm. That also is based on production. I will retain a % of their comm. As they have accessibility to office space, supplies, etc. Am I in my rights to treat both as Independent Contractors? Both are in insurance related sales. I own an LLC Corporation, Thank You!

Read this Independent Contractor (Self-Employed) or Employee? (http://www.irs.gov/businesses/small/article/0,,id=99921,00.html)

If you wrongly treat a W-2 employee as an independent contractor, the employee can file Form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. With IRS.