We handle 1099 agent vs. W-2 staff classification, broker commission splits, multi-state licensing, and health benefits that help you compete with other brokerages. One specialist handles your account.
$220K
Median brokerage exposure per misclassified agent arrangement
Audit exposure100%
IRC §3508 classification defensibility on the bench
100% pass11 days
Fastest classification audit reconstruction on the HR bench. 28-person brokerage
TurnaroundAgent vs. Staff Classification Risk
Licensed agents are documented as statutory non-employees while transaction coordinators and property managers are onboarded as W-2 staff. Both groups are documented for a DOL or IRS audit.
100% defensible classification documentation built from scratch for every new office.
What it can cost IRC §3508 statutory exemption failure = back payroll tax × 3 years + penalty. Median brokerage exposure: $220K for a 25-agent shop.
Benefits Gap vs. Large Brokerages
We shop medical, dental, vision, life, and 401(k) with employer match across all carriers. Your offer letter can compete with national brokerages.
100% of medical, dental, vision, life, and 401(k) enrollment administered, with national carriers shopped on your behalf.
What it can cost Office staff attrition vs. larger brokerages costs $8K–$15K per departure. At 30% office-staff turnover on 15 staff: $45K/year.
Multi-State Expansion Complexity
State payroll registration, employment-law compliance, and workers' comp for every new office happen on your existing platform. Open in Nevada, Arizona, or Colorado without adding HR staff.
Every state payroll registration, employment-law rule, and WC jurisdiction handled on your existing platform. All 50 states supported.
What it can cost State penalty for unregistered employment averages $5K–$50K per state per year. A 4-state brokerage missing one registration = $150K+ exposure.
Property Manager Workers' Comp Exposure
Maintenance technicians get rated inside our master PEO policy with correct class codes. Single-claim impact spreads across thousands of co-employed workers instead of raising your modifier on its own.
Every maintenance technician rated inside the master PEO policy with the correct class code. Claims walked intake-to-closure by one specialist.
What it can cost Property-management WC class codes run $3–$12 per $100 of payroll. One on-site manager claim can push your EMR, triggering 12–25% premium surcharges for three years.
Office Staff Retention
Group health, dental, 401(k) match, HSA, and voluntary disability help you keep your operational staff, and new hires start with a polished HRIS onboarding.
100% of group health, dental, 401(k) match, HSA, and voluntary disability enrollment administered in-house. Polished HRIS onboarding from day one.
What it can cost Cost of replacing one transaction coordinator: $8K–$15K fully loaded. At 25% office-staff turnover on 12 admins: $35K+/year in replacement cost.
From single-office residential teams to multi-state property management operations, our PEO is built for the classification complexity and multi-entity structure of real estate employment.
Independent and franchise residential brokerages with W2 office staff, such as transaction coordinators, marketing, office managers, and administrative support. We handle payroll, benefits, and HR for the staff side while keeping 1099 agent structure clean and defensible.
Property management companies with maintenance staff, leasing agents, and property managers, all W2 employees. We handle the multi-class workers' comp, payroll, and benefits for the full team plus licensing tracking across every state where you operate.
Brokerages with offices in 2+ states handling different licensing regimes, varied wage and hour laws, and multi-jurisdiction payroll. One specialist owns the compliance calendar across every office instead of your operations team juggling state-by-state rule changes.
The regulations we handle for you. Open any topic to read more.
Licensed agents on commission have a clear IRC 3508 statutory exception, but office managers, transaction coordinators, and unlicensed support staff do not. Misclassifying W2 employees as agents or contractors creates IRS audit exposure that can unwind years of returns.
How we solve this →Large national brokerages and property management companies offer full medical, dental, and 401(k) packages to attract top administrative talent. Independent and regional brokerages can't access those rates, and lose transaction coordinators, office managers, and licensing-ready recruits to the brokerage with better benefits.
How we solve this →Opening an office in a new state means new payroll tax registrations, different wage and hour laws, varying paid leave requirements, and new workers' comp policies. Without a PEO, each new state market adds its own compliance work and can delay launch by months.
How we solve this →Maintenance workers and property managers carry higher workers' comp class codes than office staff. Without proper classification and a PEO's pooled risk structure, property management companies often pay rates that significantly exceed what the loss experience alone would justify.
How we solve this →The most common questions we get from broker/owners, managing brokers, and property management principals.
Yes. PEO co-employment applies to your W-2 employees, such as office managers, transaction coordinators, marketing staff, and compliance officers. Your 1099 agents stay on their IRC 3508 statutory classification, unaffected by the PEO relationship. VertiSource handles payroll, benefits, and HR for the W-2 side while preserving clean 1099 structure for agents.
Our payroll system processes graduated commission splits, capped plans, 100% commission with desk fees, and transaction-based bonuses. Each closed transaction generates the correct split disbursement automatically. No manual spreadsheet reconciliation per closing. Records export clean for trust accounting and broker reconciliation.
Property managers, maintenance technicians, and leasing agents carry different workers' comp class codes. We assign the correct class code per role, audit annually, and run your claims through our pooled master policy, usually at rates well below what standalone property management companies access on the open market.
Yes. We handle multi-state payroll, state withholding, unemployment insurance registration, and paid leave compliance in all 50 states. When you open an office in a new state, we handle the new registrations, payroll tax setup, and WC coverage extension. Your part is usually a couple of conversations.
Our benefits team shops all carriers for your W-2 staff, brings back quotes side by side, runs open enrollment, and handles compliance filings (ACA 1095-C, ERISA). A 10-person brokerage office ends up with a benefits package that competes with a large national franchise, which helps you keep your office staff.
We handle agent classification, benefits that keep producers, multi-state compliance, and workers' comp for boutique brokerages and multi-state property managers. Send us your roster and a specialist will point out any classification gaps.
Talk to a Real Estate HR Specialist → 855-565-8747