Agent Leaves and Now Files for Unemployment

[Crabcake Johnny]

Agreed. Part-time is still w2. You cannot control as aspect of their job when 1099.

 

[VolAgent]

Jacob,

As I recall, you're in a small town, right? If you know a business or labor attorney call him. Otherwise go down to the courthouse and ask around. You'll find someone who can tell you in 30 minutes for a nominal fee how to handle this and if you need further assistance. Most will do it for a reasonable amount and steer you right.

They want you to come back every time you need a new contract or other document prepared. This is just setting the bait for them.

$100 is going to buy you a lot of piece of mind in this.

 

[rousemark]

What I'm worried about is if I do nothing, it will appear that I was his employer and then they can come after me for not withholding. Is that something to worry about? I guess I'm not sure what to do. He worked on his own but used my office. Paid his own gas, etc. and was paid direct by the carriers.
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So would you recommend doing nothing and just letting the claim get paid? I'd prefer to take the easy way out but don't what to set myself up for problems.

Jacob: I don't know that you need an attorney at this point but the last thing you want to do is do nothing. You need to contest his claim. They will conduct a hearing if he persists when they deny him (but he may just give up). The interview is usually done by three way telephone conversation.

 

[Crabcake Johnny]

Nothing better than from the horse's mouth:

http://www.irs.gov/pub/irs-pdf/p1779.pdf

 

[Norwayguy]

You can call your states bar association and they will refer you for a small nominal fee (I think I paid $15 or $20) for a free 30 minute consultation with a lawyer practicing the law you need.

You might not have a contract between yourself and the agent but every single carrier he signed up with had a contract that as part of it clearly stated he was an independent contractor.

Don't just sit by and do nothing thats the wrong approach call them up and see if the he was a independent contracting insurance agent solves the problem...If it doesn't sound like it will the small price to speak with an attorney will help you sleep at night.

 

[cds251]

Simple to deal with. Send them the carrier contracts that he signed.........its bound to have a section on being an independent contractor........case closed.

 

[VolAgent]

You can call your states bar association and they will refer you for a small nominal fee (I think I paid $15 or $20) for a free 30 minute consultation with a lawyer practicing the law you need.

You might not have a contract between yourself and the agent but every single carrier he signed up with had a contract that as part of it clearly stated he was an independent contractor.

Don't just sit by and do nothing thats the wrong approach call them up and see if the he was a independent contracting insurance agent solves the problem...If it doesn't sound like it will the small price to speak with an attorney will help you sleep at night.

That is all I have been saying. And that is even cheaper than I anticipated.

I had a situation just like this one. Forgot who I called, but got referred to a local attorney. I explained my situation to him and he told me not to worry. Paid a small fee that made my wallet lighter, but the peace of mind was more than worth it.

 

[jacobtn]

Man this board is great. I really appreciate all you guys help. I am on hold now with the labor board going to ask them what they need to deny the claim, but the contracts he signed should definitely spell it out. Plus since he wasn't LOA he got paid direct by the carriers which makes it even more obvious, although I did 1099 him for about 3000 of comp. on cases we did waiting on his appointment (he was licensed but not appointed so I sold them with him and paid him out of my comp)

 

[Franz Kafka]

Just to be clear, 1099's cannot collect unemployment period (they don't pay state unemployment taxes). The issue is whether he "should" have been a W-2.

 

[xrac]

Just to be clear, 1099's cannot collect unemployment period (they don't pay state unemployment taxes). The issue is whether he "should" have been a W-2.

First, employee's do not pay employment taxes period. Employers pay employment taxes.

Second, you guys are mixing two separate issues. One issue is whether someone is a W-2 or 1099 employee. This is a tax issue that is the type of thing that concerns the IRS and department of revenue. The other issue is if they have an unemployment claim or not. To have a claim someone has to show up on someones report ( in Indiana it is to the Department of Workforce Development) as an employee. If you do not show up as an employee you cannot collect period. Even if the guy had been an employee if you only paid $3,000 the amount he could collect off of your account would be small.