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You do not have to put your brokers on worker's compensation insurance as they are not employees
However, the broker of record could be classified as a statutory employee therefore your salary to this individual will need to have payroll taxes taken out of it.
Do you have any further questions or information to add?
This is in CA and the law may be diferent regarding real estater agents and witholding than other states
I realize that, and have provided you with the correct information
Is there anything else I can assist you with?
The broker of record will be paid a certain amount just for the use of the license its not payroll its a fixed monthly amount
Why should it be diferent from a service fee which i dont need to pay witholding to somone that I rent something or someone that privides me a service?
Ok, in that case they can be paid as a 1099 contractor. I assumed they would have general office duties and responsibilities
Please provide me the publication for these answers Thanks
You can reference http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-%28Self-Employed%29-or-Employee%3F
I do not have any CA publications at the moment. Thanks
For CA the publication would be http://www.dir.ca.gov/dlse/faq_independentcontractor.htm
I heard that California Labor and Workforce Development Agency considers a RE salesperson to be an employee for the purposes of WC insurance and that broker needs to cover workers comp please provide me some publication from Ca Dept of labor
I will do some more research and get back with you
Okay I did some further research and yes, the real estate agent who is 1099 contractor would still be employee for worker's compensation purposes. But, the main broker could still be 1099 instead of withheld employee
The broker is not considered "statutory employee" under federal and CA law?
You can refer to the IRS document provided for what constitutes contractor vs employee for the IRS purposes
and the CA document you can refer to the CA links that I have provided
But is the broker considered statutory employee If I just pay for use of their license?
No, they are not if you are just paying for use of their license
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