1099 or W2 when Working As a Licensed Agent for an Actual Agency

[PhillyAgent2015]

Hi,

I have insurance company side producer experience.

I relocated to Philly from out of State. My insurance producer license expired several years ago. I went back to school to get my college degree and I didn't keep the license active. It did expire and I'm okay with having to get licensed in my new State of residency.

I was classified as an employee in my prior job while going to school FT at night. That employer laid me off, and I am now collecting unemployment.

I am exploring working for a State Farm agent FT.

SF indicates in their website employment postings (on the agent's page) that the applicant is not an employee of State Farm.

Therefore, would this be a 1099 classification?

Some agents are offering $10-$12 bucks per hour plus whatever commissions they set for their office.

Is that the market rate?

Obviously things can be negotiable.

What if I'm on unemployment, can I negotiate with an agent to cover the costs of my pre-licensing coursework, licensing test expense, fingerprints, and related fees?

I'd offer to not be paid during this time since I'm collecting Unemployment and I can't technically work in the agent's office w/o the license.

I am unable to expense out the cost of the pre-licensing class or test fees b/c my budget is so limited on my unemployment and student loan payback.

Do agents do this? I would be willing to sign something to ensure that if he/she paid that, I would in fact work for them?

But most want a heavy life sales person since that generates lucrative business. Auto and Home is good, but that's apparently not their main focus. I can do it all, and try my best.

Can anyone share some insight on working for an Agent (like a State Farm or other) and did your agent cover your licensing fees? And were you able to make a decent living? If so, around how much could I anticipate earning (approximately) in the first year and future?

Is there a lot of turnover?

I am a very dedicated hard worker with strong work ethics. I would do whatever I could to be successful for my agent.

 

[djs]

Agents love to try to hire producers as a 1099 contractor, but, technically, the IRS would classify it as a W-2 employee position. The agent themselves are 1099 independent contractors through special IRS rulings.

You can have the agent pay for your license and classes. I'm not sure how this works with unemployment, but there isn't any rules about this. You can also work for the agent without your license, but you can't sell (or even technically quote). You can scan / file / answer phones / make phone calls whatever. They may not want you working till you have your license though.

Dan

 

[Josh]

SF indicates in their website employment postings (on the agent's page) that the applicant is not an employee of State Farm.

Therefore, would this be a 1099 classification?

Something different altogether. Most likely it's a w2, but it's a w2 from the AGENT, not from State Farm. So you'd be getting paid by the Steve Smith Agency and work for the Steve Smith Agency, not State Farm.

Some agents are offering $10-$12 bucks per hour plus whatever commissions they set for their office.

Is that the market rate?

That's about right.

What if I'm on unemployment, can I negotiate with an agent to cover the costs of my pre-licensing coursework, licensing test expense, fingerprints, and related fees?

I'd offer to not be paid during this time since I'm collecting Unemployment and I can't technically work in the agent's office w/o the license.

I doubt they would nor should they.

I am unable to expense out the cost of the pre-licensing class or test fees b/c my budget is so limited on my unemployment and student loan payback.

It's not uncommon for them to pay for it so that may be an option. As Dan pointed out, there are lots of things you can do without a license and it's not uncommon for them to pay you to do office work and only pay commissions once you get your license and can do some sales activities.

Can anyone share some insight on working for an Agent (like a State Farm or other) and did your agent cover your licensing fees? And were you able to make a decent living? If so, around how much could I anticipate earning (approximately) in the first year and future?

Depends on what you call a decent living. If you want a steady 9-5 that's relatively easy and will pay for a modest living, yes. If you want $50k+/year, you'll need to be well above average and/or need to look in another direction.

Is there a lot of turnover?

Yes.

 

[cgreene]

What state are you in?