As you grow your real estate business, there comes a time when you can’t grow anymore by yourself. It’s time to hire someone.
Luckily, if that first someone is a real estate agent, you don’t have to change much. Agents are “statutory non-employees” under IRS rules, which means that you won’t have to pay overtime, or withhold payroll taxes, or do much else that a regular business would need to.
However, it gets trickier when you hire the *next* person. A receptionist, or a bookkeeper, or a property manager. These employees aren’t real estate agents, so you’re in a whole new world of compliance. These rules include:
- Keep track of hours worked, and pay overtime (you can’t simply make someone “salaried” and be done; there’s much more to it)
- File payroll taxes
- Pay for Social Security and Medicare
- Buy Worker’s Compensation insurance
- Register for Unemployment Insurance
- Pay your employees (it seems basic, but saying “I’ll have the cash for your paycheck after this next closing” doesn’t really pass muster)
- Find medical insurance
Obviously, there are benefits for you as well — you can’t grow if it’s just you! Plus, you yourself can take advantages of the benefits or retirement savings plans that you create for your employees.
But if all this sounds like a lot of trouble, there’s an easier route for you. OEM America knows real estate. We are landlords, and we can help you get your business employing people at a lower cost than you can, and without the headache and hassles. Contact us to find out how!