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Why doesn’t LifeVantage withhold taxes for LifeVantage Independent Distributors?

Section 3, Independent Contractor Status, of the Terms and Conditions contained in the Distributor Application and Section 4.5 – Independent Distributor Status, explain why.  Section 3 states that an “Independent Distributor shall be an independent contractor and not an employee, agent, partner, or franchisee of LifeVantage. LifeVantage is not responsible for withholding, and will not withhold or deduct from Independent Distributor’s bonuses and commissions, if any, taxes of any kind other than as required by law. In Section 4.5 it states, “An Independent Distributor shall not be treated as an employee for his or her services or for federal, state or local tax purposes.  An Independent Distributor is responsible for paying all applicable local, state and federal taxes due from all compensation earned as an Independent Distributor of the Company.”

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