1st Week Results . . .

[Agentguy5]

Gotta love a thread where half is truth and half is BS! lol

 

[suranceman]

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.

Yes you are right to a certain degree.

Here's the bottom line: If they get a 1099, it's not okay. All their income needs to be W2.

 

[Todd King]

You can if you write it in the appointment paperwork. But you have to have sway with the carrier to do that.

You're funny. I think Am Am has spoiled you. That would be a change in the contract. Not many companies allow a "written in" change to their contract.

 

[The Deplorable]

Gotta love a thread where half is truth and half is BS! lol

Kinda like every thread is it not?

 

[CALTCAgent]

Gotta love a thread where half is truth and half is BS! lol

I agree. That is a lot higher than normal.

 

[myinsurebiz]

When you say "pass thrus", are you referring to the as earned money from their first year commission thats still due them?

Correct. I don't have a problem paying peeps what they are due. Once they leave - we'll hold all 1st year earned commissions until the 91st day passes that they last wrote business.

Really the only reason we aren't paying renewals is because it's not worth it to me to do all the accounting / direct deposit for what is probably 2% of a few $50 monthly polices . . .

 

[myinsurebiz]

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 we would lose control of the pay. Plus - since we are going to treat them as employees, which they are, they will be W2 with deductions, benefits, etc - just best to go LOA . . .

 

[myinsurebiz]

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.

They are Employees not Independent Agents. They really shouldn't be entitled to the Pass Thrus - but, I'm a nice guy . . .

 

[myinsurebiz]

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.

If I die - the LLC will survive me . . .

 

[myinsurebiz]

He can't have carriers pay his people. That would result in a 1099. He has to LOA them so he can W2 them.

We could - but, what a pain . . .

Since we only use a few Carriers - will be easy to track with software.