1st Week Results . . .

[chasejordan1]

I fail to see why this has taken pages and pages of posts.

If they are an employee they get paid by the company. To do otherwise creates a conflict of interest. They are my employee, not the carrier's. Any legal or regulatory or other reason becomes moot at that point.

Once you leave, you get paid your last week's check and any future commissions are mine. Offset against chargebacks and used to offset the cost of training your replacement.

Don't like it, don't work here.

Is it a great plan, I don't know and I don't care. That is the only sensible way to set it up as the employer. The employee can then decide to take it or leave it.

What he said.

 

[myinsurebiz]

I would hold that as earned commissions for 9 months to ensure I am not left with a debit balance. If no new business is being written, I would use the as earned as collateral for future debt. Just my thoughts.

Only advancing 3 months - so 91 days after their last write - we'll be off the hook . . .

 

[myinsurebiz]

If the agent does not pay his taxes on his 1099 from the carrier its got nothing to do with you. There is no way the IRS can hold you liable. Secondly even if the IRS did hold you liable they would only threaten to garnish if you were jacking them around.

Oh yes sir - dealing with a garnishment levy / request is a pain in the ass. Not so much since we are using a PEO - but, still a pain. Especially when they get garnished, then file bankruptcy, then get garnished again . . .

 

[myinsurebiz]

I think he is referring to the fact he has to deal with garnishment that the IRS levies against the employee.

Correct . . .

 

[myinsurebiz]

If they quit or get fired don't pay them chit except there last check for hours, you hold all "pass thru's" for charge backs.

I'm going to have to think on this over the weekend. In my mind they earned it. Maybe I can use a vesting scale - 1 year of service = 3 months, 2 years = 6 months and 3 years = 9 months.

I'm not a greedy guy.

 

[myinsurebiz]

I fail to see why this has taken pages and pages of posts.

If they are an employee they get paid by the company. To do otherwise creates a conflict of interest. They are my employee, not the carrier's. Any legal or regulatory or other reason becomes moot at that point.

Once you leave, you get paid your last week's check and any future commissions are mine. Offset against chargebacks and used to offset the cost of training your replacement.

Don't like it, don't work here.

Is it a great plan, I don't know and I don't care. That is the only sensible way to set it up as the employer. The employee can then decide to take it or leave it.

Great thoughts . . . I'm torn as to pay them after they leave or not . . .

They did create the sale. Maybe it will depend on why they left. I'm not sure if I can pay some and not pay others - gotta run that up the flag pole . . .

 

[VolAgent]

I'm going to have to think on this over the weekend. In my mind they earned it. Maybe I can use a vesting scale - 1 year of service = 3 months, 2 years = 6 months and 3 years = 9 months.

I'm not a greedy guy.

You need to make sure you comply with state law on compensation and earned compensation. Not all states are the same. For instance, Tennessee requires all earned compensation to be paid out after termination. Meaning employees also get paid for any earned but unused vacation time, etc.

 

[chasejordan1]

I'm going to have to think on this over the weekend. In my mind they earned it. Maybe I can use a vesting scale - 1 year of service = 3 months, 2 years = 6 months and 3 years = 9 months.

I'm not a greedy guy.

No vesting, just pay them raises like a normal employee.

 

[myinsurebiz]

You need to make sure you comply with state law on compensation and earned compensation. Not all states are the same. For instance, Tennessee requires all earned compensation to be paid out after termination. Meaning employees also get paid for any earned but unused vacation time, etc.

Great advice . . . I'll ask about that. Perhaps - month's 4 thru 12 could be a retention bonus - that isn't "earned" until it is paid in . . . But I'll check with my gal and see.

 

[myinsurebiz]

No vesting, just pay them raises like a normal employee.

I meant "vesting" for when they left. While employed they get all their passthrus. May term these Bonuses - like Policy Retention Bonuses.

Actually - VolAgent had a good point about "earnings" - so, gonna have to get some legal advice on this one.