Commercial Trainee Pay

[AirstreamCO]

We recently started a commercial trainee at 35%. Will go to 40% after 6 months. 1099. I'm also of the mind that's illegal but real estate folks think that's par for the course. Agents and brokers consider us in the same industry so 1099 is legal.

I'm also a trainee - 15 months in with 2500 hours so I'll be testing for CG in 3 months on course for my 3000. I'm at 40% but a W2 which I figure is worth about 10-12% due to payroll taxes and health insurance. Had to fight for W2 but I'm handling all the bids and generally managing the department. Should go to 50% as a CG with infinitely more options...hopefully.

Our place is more of a sweatshop with the supervisor never ever writing or researching. He typically visits, advises, and reviews final. Full immersion but I'm learning a lot

 

[Deleted member 126639]

We recently started a commercial trainee at 35%. Will go to 40% after 6 months. 1099. I'm also of the mind that's illegal but real estate folks think that's par for the course. Agents and brokers consider us in the same industry so 1099 is legal.

I'm also a trainee - 15 months in with 2500 hours so I'll be testing for CG in 3 months on course for my 3000. I'm at 40% but a W2 which I figure is worth about 10-12% due to payroll taxes and health insurance. Had to fight for W2 but I'm handling all the bids and generally managing the department. Should go to 50% as a CG with infinitely more options...hopefully.

Our place is more of a sweatshop with the supervisor never ever writing or researching. He typically visits, advises, and reviews final. Full immersion but I'm learning a lot

It doesn't matter what brokers think. You cannot make executive decisions by law as you are not licensed. Hence, you are not exempt.

 

[Zephyr999]

It doesn't matter what brokers think. You cannot make executive decisions by law as you are not licensed. Hence, you are not exempt.

It's really not that hard...but until caught some will still do as please.

 

[Michael S]

I made $30k/year as a trainee about 12-13 years ago in LCOL/MCOL city. Basically, doubled as soon as I was licensed and on full commission. I'm pretty sure they've raised the trainee pay to at least $40k by now with inflation. It definitely felt like indentured servitude at the time. No overtime but certainly more than 40-hour weeks.

 

[Terrel L. Shields]

I made $30k/year as a trainee about 12-13 years ago in LCOL/MCOL city.

Good to see you post occasionally Michael.

 

[Michigan CG]

How can someone live on that? That's one $3,000 job a month you can do in a day. You can't gamble more
Than three days of work over three months to see if someone can add value to your workflow?

Most CG appraisers cannot do a $3,000 commercial report in a day especially those of us in small communities. $750/week is a good fee in some areas and not good in some areas.

 

[Michigan CG]

He is telling him he will be an independent contractor for about 4 months (a trial basis) if it all works out for both of them then become and employee. He has his trainee license.

He can be a 1099 as long as he is not a trainee gaining experience hours. Once that (getting experience hours) starts the IRS says he is an employee and the penalties can be significant.

 

[Deleted member 126639]

He can be a 1099 as long as he is not a trainee gaining experience hours. Once that (getting experience hours) starts the IRS says he is an employee and the penalties can be significant.

Never heard of that, especially as the IRS has pretty explicitly stated contractors must be professionals, but hey. Risk it. Nurses and accountants out of college make $60k plus in third tier low cost of living places like Birmingham, Alabama. If you think competing with Starbucks and Amazon warehouse jobs for talent is the way to go, I think it's absurd, but that is what this so-called profession has become for the old guard.

 

[The Warrior Monk]

Never heard of that, especially as the IRS has pretty explicitly stated contractors must be professionals, but hey. Risk it. Nurses and accountants out of college make $60k plus in third tier low cost of living places like Birmingham, Alabama. If you think competing with Starbucks and Amazon warehouse jobs for talent is the way to go, I think it's absurd, but that is what this so-called profession has become for the old guard.

His wording was important. Basically, the person it not performing activity that falls under licensed activity, and the person is not gaining experience for their license. Such a person would not be working as a trainee, so they can perform other duties as an IC. If the started doing anything valuation related (analysis, picking comps, etc. ) then they could not be considered ICs, and would have to be classified as an employee.

 

[Michigan CG]

Never heard of that, especially as the IRS has pretty explicitly stated contractors must be professionals, but hey. Risk it. Nurses and accountants out of college make $60k plus in third tier low cost of living places like Birmingham, Alabama. If you think competing with Starbucks and Amazon warehouse jobs for talent is the way to go, I think it's absurd, but that is what this so-called profession has become for the old guard.

You have never heard of what? I can pay a person to fill out forms with no experience and pay them as a 1099. There are a ton of "services" that sell they fill out the forms in the residential world and they are all 1099.

You brought up nurses and accountants but did not expand further. My wife is an NP for 21 years and was an RN for ten before that. What is your point? Some nurses make $400,000 now working as travel nurses as 1099 employees.