New Work Comp law affecting Real Estate Agents
Employees for real estate agencies will be treated differently starting July 1st with the new law that was passed for Wisconsin Workers Compensation. This law will affect all brokers, agents and salespeople in the real estate market.
Effective July 1, 2016, under s. 452.38, Wis. Stats., a licensee, including a real estate broker, an agent or a salesperson is not considered an employee of a firm under the Act if all of the following are satisfied:
(a) A written agreement has been entered into with the firm that provides that the licensee shall not be treated as an employee for federal and state tax purposes. (b) Seventy−five percent (75%) or more of the compensation related to sales or other output, as measured on a calendar year basis, paid to the licensee pursuant to the written agreement referenced under par. (a) is directly related to the brokerage services performed by the licensee on behalf of the firm.
All licensees that met the criteria per above will automatically be precluded from the firm's Work Comp policy effective July 1st, 2016. However, real estate firms can voluntarily provide work comp to its brokers, agents and salepersons through an endorsement of its work comp policy using form WC 4803 04.
For more information, check out the bulletin released by the Department of Workforce Development.