Monday, July 12, 2010

Not paid by "employer", I am a contractor. What to do?

I am a realestate agent. Real estate agents are generally considered contract employees, paid by commission, and issued 1099's instead of w-2's. The person I work with is always slow to pay me, as they are always waiting for a check to come in.





I am owed some additional money for this month and have not received it. I probably will not receive it until late next week (into 2007).





Has anyone else had an experience like this? I'm fed up with never knowing when I will get paid and am considering packing up and leaving without notice if I don't get paid by Tuesday of next week.





Any opinions?

Not paid by "employer", I am a contractor. What to do?
In the future, you have every right at the closing to ask the attorney, title company, or whatever entity that is handling the closing, to cut two checks. One to your agency for their share, and one to you for your share. You will need to get your agency's approval, however that should not be an issue, as you can demand it from them. It will require a little extra work on your part to determine the actual split, but well worth the effort. The agency will still be required to report you share as a 1099.


Now for your current problem. There should not be a delay of greater than 7 days for you to get your commission after a closing. The fact that there is, indicates a cash flow problem for your agency, which is a huge red flag. Remember, should the agency file for bankruptcy protection, you and your due commissions are unsecured debt, which means you will have to wait for months or years to get a small % of the original commission due you. If you like your agency, outside of this patment issue, then propose the split checks at closing to them. If they balk, walk.
Reply:First, I would find another broker to work for who pays you when the deals close (or you can say "I want to be paid within 10 days of the closing and see how they respond). Second, I suggest incorporating as being paid on a 1099 stinks - you have to pay both the employer and employee taxes ( yes, double taxation) and if you're not disciplined enough to pay the those estimated quarterly taxes you can get behind and then get charged interest and penalties. If you were incorporated you could write off a lot more of your expenses. Talk to an accountant and have them make you up some spreadsheets doing a comparison of 1099 vs. Inc. (or LLC). I think in the long run you'd save $. Just a suggestion. My sister is an agent . . . but she gets paid right away.


Best of luck to you. Hope you get paid soon.
Reply:Since your not a regular employee, you have some say in when your suppose to receive payments. It's either they want your work, or they don't get any work if they don't pay. You need to stand by this one, and tell them you do not tolerate late fee's unless it's for a major reason, like family emergency or something. If they are late, charge them a nice sized late fee. You have more power than you think.





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Reply:You could contact "Time %26amp; Wage" I think they're a part of your local labor dept. You could also contact the Better Business Bureau. The best would be to have a straight talk with your employer. Tell him if you can't get paid sooner, that you need to look somewhere who will. Yes, I have had experiences like this, and inevitably I had to leave, but don't leave yourself "high and dry".
Reply:As long as you are paid, within a reasonable period of time, and that can be debated, not a whole lot you can do, legally. 30 days is considered reasonable.





You can leave at any time, no notice required as a contractor.


The employer is living paycheck to paycheck, so to speak. That would be worrisome to me. If and when his collection is delayed for any length of time, you may have a serious problem.
Reply:Next time. Make a contract.
Reply:Unfortunately there is not alot you can do about it. You can take them to small claims court if they withhold your pay for more than 30 days, but that doesn't help in the short term. I would try talking to them about why they take so long to pay you and let them know that if it doesn't stop that you may be seeking employment elsewhere. Good Luck.
Reply:I work on commission. All you can do is ask for your money.


Say.... can I see you a minute...ask...Joe or whatever..I really need my money I have bills to pay, where is my check?
Reply:Let your employer know that it is becoming a problem. If they don't do anything, start looking for employment elsewhere. Whatever you do, don't quit without proper notice. That can make you appear to have a poor work ethic.
Reply:Good plan. Plenty of places for you to go. No reason to deal with this and maybe you leaving will wake him up. Not everyone can get by for weeks with no money like he can.
Reply:You should go to court and sue that person that owes you money.
Reply:Threaten to take him to small claims court, or file a complaint and put a lein on his house. It should only cost about $30 to do so. He'll pay you!!!


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