Insurance Agents — Certain Licensed Insurance Agents Are Independent Contractors
Licensed Insurance Agents or Brokers are independent contractors IF the Licensed Insurance
Agent or Broker meets ALL of the following requirements:
- has income based upon sales and not on the number of hours worked;
- is not a life insurance agent receiving a training allowance subsidy;
- has entered into a written contract that outlines the services that they are
to perform -- this contract may be terminated by either party at any time upon notice given to
the other party;
- can work any hours they choose;
- incur their own expenses including automobile, travel and entertainment
(office facilities and supplies may be provided by real estate firm); and
- shall NOT be treated as an employee for State and Federal tax purposes
(other than FICA that is required for full time life insurance agents).
For a complete description of the written contract requirements, refer to WCL §2 .