Do real estate agents have health benefits through their employer/broker or must you pay for your own plan?

Answered by:

Tami Murphy

Highly recommended
Intero Real Estate Services
41 Questions answered
Answered on July 19th, 2019
Real Estate Agents are Independent Contractors & do not have an employer in the eyes of the I.R.S.  There are very strict guidelines that must be adhered to to retain that "self employed" independent contractor status.  If a Real Estate Agent wishes to purchase health insurance they must do so on their own & it can not be provided by their broker of record. 
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It is very difficult to envision how a Real Estate Agent can pass the new ABC rules for establishing independent contractor status in CA. In particular, parts A and B are making it very difficult for former ICs to maintain an IC status as the agency for whom you contract inevitably wants you to perform or function in a manner that is consistent with THEIR rules .

Also, a real estate company is in the business of of selling real estate so it is within their coarse of business to hire people who can make that happen; that eliminates pretty much everyone who could actually pass part A.

THE TEST AS PER CA SUPREME COURT in Dynamex vs Superior Court

1) Part A of the test requires that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and

2) Part B of the test requires that the worker performs work that is outside the usual course of the hiring entity’s business; and

3) Part C of the test requires that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

4) The contractor must actually be in business for themselves. Would love to hear thoughts about this.
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