Am I Really "Independent" at a Captive Agency?

[insuranceexec]

Thanks all for taking the time to reply! All of your input has been very informative...and gave me a good laugh.

I'd love it so much if they just layed off and realized I'm an IC contractor, I wouldn't even think about leaving. Unfortunately the "tyrant" aka manager has doubled production in his district through intimidation, threats, embarassment etc...so upper management loves him. They don't see the crap he pulls with us, or maybe they do and turn a blind eye. Either way its results that matter to them.

I'm def. going to be looking into my options...if there are any.

Many of the people whom have responded; can help you.

Take any one of their numbers and give them a call. Have a great evening.............

 

[jaugusta]

How do you not stand up to him? If he gets in your face get back in his.

Maybe that is just the military man in me, but I would not let somebody treat me like you say he treats you.


Go in his office, and councel him on how his leadership is lacking and hurting others and can be counter productive to the production and moral of ther members of the office. Yell him how he is making it hard for people to come forward and bring idea to light, how his tactics is detramental to the employees there.

If that does not work, let him know you carry a gun under your suit. lol.

 

[AtlantaLife&Health]

You're just as independent as they come. "You're now free to roam about the cabin."

 

[arnguy]

Nope, they don't withold anything anymore, I'm 1099. They do deduct all of my "expenses" out of my monthly commissions before I ever see my paycheck, that way their expenses are always paid first. I also thought there were different rules with the IRS for people in insurance, real estate agents etc...to where the companies can call you an Indenpendent contractor but have more authority...But I'm not sure.

Sorry I didn't get back to you sooner, Longhornsfan. With regard to the definition of an independent contractor the Internal Revenue Code goes into some depth, but to summarize from a Tax Court Memo (TCMemo, 1984-78): Among the factors to decide whether a person is an IC are: the degree of control over the performance of the work done, the size of the investment in tools and equipment, an opportunity of profit and losss, the right of discharge, whether the work is a regular part of the business, the permanancy of the relationship, and the relationship that the parties thought they were creating.

Rev. Rul. 87-41, 1987-1 CB 296 lists 20 factors used by the IRS to determine if the taxpayer is an employee v. independent contractor. Basically if, "an individual is subject to the control or direction of another with respect to work objectives, but not with respect to the means and methods for accomplishing the objectives, the individual is considered an independent contractor and not an employee." (CCH Federal Tax Compliance Guide, 2009, Sec. 29,030). IMO from the facts stated by you, it definitely appears that you fall within the definition of an IC.

Internal Revenue Code Sec. 3508 states that real estate agents are treated as independent contractors, rather than employees, for services rendered where a written contract specifically states that they are to be treated as independent contractors for federal tax purposes.

Furthermore, IRS Reg. Sec. 1.401-10(b)(3)(i) states that a full-time life insurance sales representative who is treated as an employee for FICA-tax purposes is treated as a common-law employee. Also, Statutory Employees include full-time liofe insurance salespersons (Internal Revenue Code Sec. 3121(d)(3). These.... "statutory employees report their wage income and claim their employee business expenses on Schedule C or Schedule C-EZ. They are NOT liable for self employment tax on this net income, because their employers are obligated to treat such individuals as employees for social security purposes (CCH Federal Tax Compliance Guide, 2009, Se. 11,075).

That is my tax treatise for today. Class dismissed!

 

[atgnut]

Plainly stated you are an employee of this company. You even stated that you loved your JOB. Best of luck to you and your situation. Sounds to me that your BOSS is a real bleep!!!!