Is this Situation 1099 or W-2?

Discussion in 'Senior Insurance Forum' started by somarco, Aug 8, 2017.

  1. somarco
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    somarco Well-Known Member

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    If a General Agent provides office space, phones, leads, etc for his/her licensed agents, are they W-2 or 1099?

    What if the GA is the writing agent of record, takes a cut of the agent comp, collects bonus and trips earned by the phone room agent? Does that change the agent status (1099 vs W-2)?

    When I started in the business my GA was a carrier employee. Office space, etc was paid for by the carrier. The difference was he was not the WA, I was. Any trips, bonuses, etc were mine, not his.
     
  2. Todd King
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    Todd King Well-Known Member

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    I've always been told that if a person is told where to be and when to be there, has set hours, set pay, etc, they should be W-2.
     
  3. somarco
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    somarco Well-Known Member

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    That is my understanding as well, Todd.

    Under the "old" agency system the only time I was required to be in the office was for meetings. Beyond that, I could come and go as I please.

    "Leads" consisted of a Criss-Cross Directory, a desk in the bullpen and a rotary dial phone.

    Straight commission, although there was a financed arrangement where I was paid a nominal amount each month that had to be validated to get paid the following month.

    But I was the writing agent, not the GA.

    It is my understanding there are agents today, working in offices where they take the application but the GA is listed as the WA. The GA is invited to award ceremonies, presented plaques and goes on fancy trips.

    He takes the kudo's while the grunts do the heavy lifting.
     
  4. VolAgent
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    VolAgent Well-Known Member

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  5. somarco
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    somarco Well-Known Member

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    Can't say how much control is exhibited, Kirby. Just seems like all is not kosher in the situation.
     
  6. VolAgent
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    VolAgent Well-Known Member

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    That is the other part of the puzzle. Although, considering what all he is providing and you mentioning it is a phone room, I expect the GA has a lot of control. So probably should be W-2.

    I can't imagine a GA providing all that, particularly in a phone room, and not exercising complete control.
     
  7. kgmom219
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    kgmom219 Well-Known Member

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    Here's my crappy answer...

    Carpe Diem

    If you choose to sign a contract where you do all the work and the bosses name is what appears on your apps, then tough. They aren't slaves, right? No one held a gun to their head and made them sign on the dotted line?

    Suck it up, buttercup
     
  8. somarco
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    somarco Well-Known Member

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    Kirby, inbound calls. No smile and dial.

    Jen, I hear you.
     
  9. VolAgent
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    VolAgent Well-Known Member

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    Gotcha. I still say probably W-2. The one I mentioned to you via PM is a very similar set up and I believe the people would probably be ruled W-2 should the IRS or State DOL ever find out. They receive inbound calls or transfers all day and are effectively chained to the desk and phone.
     
  10. somarco
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    somarco Well-Known Member

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    My feeling is they are W-2, but not my circus.
     
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