1099 Agent - Question

[arnguy]

Thank you for the replies, they have been quite educational. I will ensure that all of my questions are answered before I sign anything.

Arnguy,
I knew the spelling didn't look right, but at that time of the morning my brain wasn't 100% functional, still on first cup of coffee.

It's OK seadevil----just take a swig of Red Bull before you type, but don't spill any on the keyboard. It might dissolve in front of your eyes.

 

[seadevil]

I don't know about Red Bull, but I did see a guy spill an orange soda on a keyboard once. That was ugly.

 

[Vance Vader]

If you are a 1099 employee, or independent contractor by IRS definition, you MUST be able to contract/work for other companies. If they company you work for attempts to bind you to work "exclusively" for them (with a whatever contract or...whatever!), and are not withholding taxes (i.e. consider you an employee, which is what you truly are) then they are breaking the law and you can easily fight it. Throw in that they have you on a set schedule, you use all of their equipment and NONE of your own to do your daily work, and you've got yourself a slam dunk.

Don't forget to mention all the other 1099 folks in the building if it goes that far and they really get you upset.

 

[xrac]

If you are a 1099 employee, or independent contractor by IRS definition, you MUST be able to contract/work for other companies. If they company you work for attempts to bind you to work "exclusively" for them (with a whatever contract or...whatever!), and are not withholding taxes (i.e. consider you an employee, which is what you truly are) then they are breaking the law and you can easily fight it. Throw in that they have you on a set schedule, you use all of their equipment and NONE of your own to do your daily work, and you've got yourself a slam dunk.

Don't forget to mention all the other 1099 folks in the building if it goes that far and they really get you upset.

The information stated may not be true as for insurance agents. I think the IRS views them as independent contractors but the insurance company can still give them a W-2 status if they so choose. They have a statutory standing by the IRS:

Statutory Employees
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute ( statutory employees ) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social security and Medicare taxes , below.

• A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
• A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
• An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.
• A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer s business operation. The work performed for you must be the salesperson s principal business activity. Refer to the Salesperson section located in Publication 15-A, Employer s Supplemental Tax Guide for additional information.

 

[Vance Vader]

The information stated may not be true as for insurance agents. I think the IRS views them as independent contractors but the insurance company can still give them a W-2 status if they so choose. They have a statutory standing by the IRS:

Statutory Employees
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute ( statutory employees ) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social security and Medicare taxes , below.

• A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
• A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
• An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.
• A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer s business operation. The work performed for you must be the salesperson s principal business activity. Refer to the Salesperson section located in Publication 15-A, Employer s Supplemental Tax Guide for additional information.

Thanks for including that, as I had never read it. However, I guess we're missing still a few key notes of interest. Seadevil needs to mention what TYPE of insurance he/she is selling, and the above listed are the 4 categories, but we still need to reference the 3 conditions under the SS and Medicare taxes.

I incorrectly assumed this was for health.

 

[seadevil]

VV,

It will be both, Life & Health.

Again, thanks to everyone for their replies.