Why it matters
Many insurance agents work this way. They pay self-employment tax, track expenses, and often make estimated tax payments. The IRS looks at behavior, finances, and the relationship to decide worker status. Agents should talk to a tax professional about their own situation. Because the agent is not an employee, benefits like health coverage and retirement plans are the agent's own responsibility.
Source: irs.gov
Read next, for agentsHow do life insurance agents get paid? An honest breakdown