"An Act relating to excluding qualified real estate licensees from workers' compensation coverage. "
"In fact, the Federal Government IRS recognizes qualified real estate licensees as independent contractors and the state should likewise."
- Rep. Lynn
Most real estate licensees in Alaska are independent contractors. They are licensed under a broker because that is state law, but they operate their individual business as "independent contractors."
In the real world, this means that these licensees do not receive a wage, salary or benefits. They control and decide what days and hours they will work in order to achieve the goals they set for themselves. Business expenses paid by the licensee include: licensing fees, continuing education, advertising, long-distance phone calls, and business insurance on their vehicles. They often pay for their own computer, printer, and other office equipment, and create and pay for their own individual websites. Independent Contractors pay quarterly estimated income tax and pay, not only for their own social security taxes, but that portion of the social security tax that an employer would normally pay.
In short, real estate licensees operate an independent business within a business. For these reasons, it is an unnecessary financial hardship and inappropriate for the business owner to pay workers compensation for these independent contractors.
In fact, the Federal Government IRS recognizes qualified real estate licensees as independent contractors and the state should likewise.
Your support of this bill is respectfully requested.