Independent producers as 1099 or employees?

[Markthebroker]

Hi there. I am an independent producer, and a 1099 independent contractor. The laws are clamping down more and more on the rules of 1099 vs employee, especially with this new "gig" economy we find ourselves in.

Are other agencies starting to employ independent producers as employees, or is it as I suspect, 1099 is still the norm?

I appreciate eveyone's help here, but I am only interested in the input from people with first hand knowledge of the current situation. Thanks again.

 

[goillini52]

Hi there. I am an independent producer, and a 1099 independent contractor. The laws are clamping down more and more on the rules of 1099 vs employee, especially with this new "gig" economy we find ourselves in.

Are other agencies starting to employ independent producers as employees, or is it as I suspect, 1099 is still the norm?

I appreciate eveyone's help here, but I am only interested in the input from people with first hand knowledge of the current situation. Thanks again.

I don't know, but I think 1099's are here to stay.

 

[sshafran]

Hi there. I am an independent producer, and a 1099 independent contractor. The laws are clamping down more and more on the rules of 1099 vs employee, especially with this new "gig" economy we find ourselves in.

Are other agencies starting to employ independent producers as employees, or is it as I suspect, 1099 is still the norm?

I appreciate eveyone's help here, but I am only interested in the input from people with first hand knowledge of the current situation. Thanks again.

1099 is the norm. Now if the “boss” or “up line” says to come in at 8 for a mandatory meeting or if they in any way act like a “boss,” then they are on thin ice.

Let freedom ring, is the mantra of a true 1099 contracted individual/business entity. In other words, if no one tells you what to do, then you are likely a 1099.

 

[sshafran]

1099 is the norm. Now if the “boss” or “up line” says to come in at 8 for a mandatory meeting or if they in any way act like a “boss,” then they are on thin ice.

Let freedom ring, is the mantra of a true 1099 contracted individual/business entity. In other words, if no one tells you what to do, then you are likely a 1099.

One layer of protection, if you are looking to bring on agents but not be accused of treating them (mis-classifying) as W2, is to only bring on people who have incorporated. I.e., hire their S-Corp, or LLC or whatever, don’t hire sole prop’s.

Obviously, not a lawyer, just a guy on a forum typing away 2 cents worth 2 cents...

 

[adjusterjack]

Are other agencies starting to employ independent producers as employees, or is it as I suspect, 1099 is still the norm?

Might be the "norm" but whether it's a legal arrangement depends on how much control the agency has over the agent.

The IRS has guidelines that will help you determine whether an agent is an independent contractor or employee.

Independent Contractor Self Employed or Employee | Internal Revenue Service

 

[InsCommentary]

It’s dated but likely accurate unless superseded by law...

ARE PRODUCERS AND EMPLOYEES 1099 CONTRACTORS OR EMPLOYEES? - The Pipeline - Agency Consulting Group, Inc.

One of the tests our labor department has considered is the freedom to work for multiple entities. How many producers work for multiple agencies? Or is the proper consideration the ability to place business with multiple carriers?

 

[MN Princess]

I am a w-2 employee with a base

 

[Tahoe Ray]

Hi there. I am an independent producer, and a 1099 independent contractor. The laws are clamping down more and more on the rules of 1099 vs employee, especially with this new "gig" economy we find ourselves in.

Are other agencies starting to employ independent producers as employees, or is it as I suspect, 1099 is still the norm?

I appreciate eveyone's help here, but I am only interested in the input from people with first hand knowledge of the current situation. Thanks again.

I have 2 independent producers and one captive producer.

My indy guys are 1099. I don't tell them what to do, just assist with case design, upcoming appointments, and marketing efforts.

They eat what they kill.

My captive producer is w2 because there are production goals, specific requirements, job duties, etc.

It all depends on the role.

 

[VolAgent]

I strongly doubt any P&C producer will qualify as a 1099 when viewed through an objective lens. Any agency is going to want to exercise too much control and hold the agent too tight to be likely to truly be independent.

I believe it is much more likely with Life as many are remote and states away, also since more of the underwriting falls on the company, the agency generally doesn't have its own standards to protect its loss ratio and standing with the company.

Also, many life agents are paid direct by the company, while I believe most P&C producers are going to be paid by the agency, further establishing control by the agency over the agent.

Again, all just my opinion.