- 1,912
When you say "pass thrus", are you referring to the as earned money from their first year commission thats still due them?
1st Week Results . . .
- Thread starter myinsurebiz
- Start date
When you say "pass thrus", are you referring to the as earned money from their first year commission thats still due them?
Instead of having an accounting nightmare by giving them their as earned from month 4 thru 12, why don't u just give a lower commission and have them paid by the carrier?
Because if the producer is paid by the carrier, myinsbiz and his partner don't get to keep all the money if the producer quits or is fired.
- 1,912
You can if you write it in the appointment paperwork. But you have to have sway with the carrier to do that.
Lot easier just to LOA the agents.. When I started an agency almost all sub agents were LOA... Th GA was responsible for paying them.. I came to hate dealing with it. One of my concerns became, "What if I kick the bucket, how are the agents going to get what they are entitled to receive'? After all, they had families to support and they depended on that money coming in. I would not sign an LOA contract today and I wouldn't ask anyone else to do what I won't do.
He is paying them when they quit anyways. That's why it doesn't make sense.
- 924
He can't have carriers pay his people. That would result in a 1099. He has to LOA them so he can W2 them.
Why can't you pay them and still have them receive a 1099?
- 924
He needs to avoid the 1099. That's the whole point of having them LOA. A 1099 means his employees are paying both sides of the employment tax which the DOL would have a huge issue with when they are rightfully W2 employees.
Hmm, doesn't make to much sense to me. If they are w2 but still getting a 1099 as a bonus, wouldn't that still qualify them as employees.
Maybe I'm just dumb, idk labor laws are weird.
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