Getting Property and Casulaty License help?

Question

After getting my license is it necessary to give my ssn number to my employer? Is it necessary ? can I work for an insurance agency without it. Will they allow it ? From my understanding they pay you by commission, but I've also heard that some insurance agencies pay you hourly too. If they pay hourly how much is it usually? Is that true? How does it work?

Answer 1

One way to get paid is you are considered an employee of the agency, you complete a W-9 form, they take income taxes out of your paycheck, and at the end of the year they give you a W-2 that states your earnings for the whole year.  Other way is you are an independent contractor and you get paid without taxes being taken out of your pay, at the end of the year they send you a 1099 stating the total amount they have paid you for the year. Either way, you will need to give them your SSN, what are you afraid of? As far as being paid hourly this amount would vary from company to company and your job duties. Some companies also will pay you a base salary of say like $400 a week plus commission until you get established and then cut you back to straight commission and some companies will continue to pay you a base plus commission. I am independent, so I get only 1099 pay year round. Best wishes on your new career.

Answer 2

Yes, employers are REQUIRED to collect your SS number, because they have to report your income to the IRS.  

If you're starting out with no experience, hourly at an agency, don't expect to make much more than minimum wage - you'll be answering phones and doing filing and such, as they train you up.

Answer 3

Yes, I would think you would have to give your SSN for tax purposes. Your compensation depends on your employment status. If you are an employee, you'll be paid an hourly wage, and you may receive some additional compensation based on what you sell. If you are an independent contractor, then your income will be based on commission. The amount of commission depends on the company and the type of insurance you're selling.