An employee is an agent of the employer but not all agents of the employer are necessarily employees for example, an employer might hire a law firm to pursue debt claim for example, an employer might hire a law firm to pursue debt claim. In the light of this dilemma, is an insurance agent an employee of the insurance company or an independent contractor who has no employment relationship with the latter this is one of the major issues that the supreme court resolved in the case of gregorio v tongko vs.
Both employees and agents require management from your sales director, but agents’ greater financial incentive to sell ought to mean less supervision certainly, they will require less attention from your hr department, so the costs of using an agent as opposed to an employee should be lower. The difference between an agent and an independent contractor by austin berry - updated september 26, 2017 agents and independent contractors sell products or provide services within different legal boundaries.
Most captive agents probably are employees based on the criteria put out by the irs but i think all of the major carriers 1099 their agents and classify them as independent contractors but treat.
A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company withhold social security and medicare taxes from the wages of statutory employees if all three of the following conditions apply. Agents and independent contractors sell products or provide services within different legal boundaries agents are employees, while independent contractors are self-employed this difference affects how services are performed. An agent is a person or entity that can be an employee or independent contractor providing service for the principal on an ongoing basis however, a totally independent third party can be an agent and nothing else.
The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party. Employee's withholding allowance certificate form 941 employer's quarterly federal tax return (statutory employees) fruit, or bakery products or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission a full-time life insurance sales agent whose principal business activity. Find out the differences between a employee and independent contractor at legalzoomcom.
The key distinction between an employee and an agent is that the agent is hired with the power to represent the hiring party, the principal 5 an independent contractor is hired by an employer to perform a specific task.
Agents and employees the first step in understanding employment law is understanding what an agent is agency law also complements our understanding of both contract law and the laws of business organizations.