Are life insurance agents employees or independent contractors?

Insurance Agents Properly Classified as Independent Contractors. A common practice of many insurance companies is to structure their sales force to provide that its agents are independent contractors as the companies believe that the best way to sell insurance is through independent contractor agents.

What do you need to know about hiring an independent contractor?

Also, a host of federal and state labor laws apply whenever you hire an employee. These can include workers’ compensation and unemployment insurance coverage. If you hire an independent contractor, you need not follow any of these requirements. The independent contractor pays their own self-employment tax dues.

What does an independent insurance agent do for You?

Your independent agent is your legal representative to the insurance company. After being licensed by your state, independent insurance agents have the responsibility to be your advocate. They are required to put your interests ahead of themselves and the insurance companies they work with.

Do you need a Social Security number for an independent contractor?

File IRS Form 1099-MISC telling the IRS (and your state tax agency) how much you paid the worker. Get the independent contractor’s taxpayer identification number. If they don’t have one, you need their Social Security number. Do you have to do backup withholding for independent contractors?

Do you have to pay taxes to an independent contractor?

While you don’t need to withhold any taxes from an independent contractor’s paycheck or pay benefits, you do need to tell the IRS if you paid your contractor more than $600 during the previous calendar year. Have your independent contractors fill out a Form 1099.

What kind of insurance do I need as an independent contractor?

From your client: Your clients can add you to their general liability insurance policy as an additional insured. This covers you while you do the job, but it can be costlier for your clients. From an insurance provider: Getting your own coverage is typically the more cost-effective option for your clients.

Your independent agent is your legal representative to the insurance company. After being licensed by your state, independent insurance agents have the responsibility to be your advocate. They are required to put your interests ahead of themselves and the insurance companies they work with.

Can a staffing agency be sued by an independent contractor?

This will protect both the staffing agency and the host company from exposure to penalties for misclassification and allegations from the contractor of failure to offer them health insurance. Another thing to handle when working with independent contractors is who owns the intellectual property.

Who are independent contractors in the United States?

Around 6.9 percent of United States workers were considered independent contractors in May 2017, with many working side by side with staffing agencies, according to data from the U.S. Bureau of Labor Statistics. But within the next decade, contract workers and freelancers could make up half of the American workforce, NPR has found.