3.2 Tax Filing Requirements

The Company is not responsible or liable for deduction of social security, income, or unemployment taxes for any brokerage sales and related income. Each Associate is responsible for maintaining all business and financial records necessary for purposes of reporting income as required by state and federal agencies and for reporting income as required by law. The Company’s obligation is limited to providing a 1099 Miscellaneous Income form to you and to government agencies as required. If you have a S-Corp or LLC, only a breakdown of your income through AARE will be provided, not a 1099.

Unemployment Taxes: As an independent contractor, the Associate is not covered under state or federal unemployment laws. Accordingly, the Company does not pay unemployment taxes on the earnings of its Associates.