Employee or Independent Contractor Classification Under the Fair Labor Standards Act

Posted by Debra Killian
Categories Compliance, Mortgage Broker Business, Mortgage Competencies, Mortgage Education, Mortgage Employment, Mortgage Insights, Mortgage Lender, Mortgage Recruiters, Originators, Originators, Processors, Underwriters
Date December 20, 2022

On October 13, 2022 the Federal Department of Labor published findings in Vol. 87, No. 197 of the Federal Register.

The W-2/1099 controversary hits many businesses. As stated in previous posts, there is no special 1099 consideration for mortgage loan originators.

Regardless of which state you work in or which type of employer your work for, Mortgage Loan Originators are required to have their income reported on IRS Form W-2.

There are many companies that believe the states have overriding authority. I respectfully disagree. Federal tax law must be complied with no matter what the state law dictates.

If the DOL is publishing recent updates to misclassification of employees, suffice it to say, enforcement will be next.

We strongly recommend any company reporting income on a 1099 instead of a W-2, to consult with a CPA or tax attorney.

For more information contact: Debra Killian (866) 256-3766 or deb@cloes.online.

Debra Killian, a seasoned Mortgage Loan Originator, Course Developer, and Instructor combines her extensive 35-year background in residential mortgages, real estate, banking, and accounting to excel in the mortgage industry. An alumnus of Western Connecticut State University with a B.B.A. in Accounting,

Debra has been a transformative figure in residential mortgages since 1994, overseeing and managing over $1 billion in real estate loans. Her unique educational and professional journey has positioned her as a dynamic and effective trainer in the mortgage and real estate sectors, offering tailored courses that use mortgage competencies in building long-term relationships with customers and real estate professionals.

A trailblazer in mortgage education, Debra co-authored pivotal NMLS-approved courses, including the 20-hour Pre-licensing SAFE Act course in 2010 and The Mortgage Professional for the same curriculum in 2011. Her contributions continued with co-authoring the MBA's School of Loan Origination and mortgage and real estate continuing education classes.
Debra relentlessly pursues the latest industry trends and regulatory changes, ensuring her courses, both new and existing, are continuously updated and aligned with current standards and practices.

Debra's leadership extends beyond her immediate professional sphere, evidenced by her past roles in the CT Mortgage Bankers Association, the National Association of Mortgage Professionals (NAMB) and various real estate associations.

A sought-after speaker, Debra lends her expertise to various professional groups and is dedicated to developing and delivering custom courses, reflecting her passion for education and industry advancement.

She and her husband Donald DeRespinis, own Charter Oak Systems, LLC which operates Cloes.online, and online education provider for pre-licensing courses required by the Secure and Fair Enforcement ACT (SAFE) Her passion is providing mortgage loan originators competency based training and professional development courses to all elevate mortgage loan originators. In addition to NMLS required courses, Debra and Don provide an array of compliance training to help companies comply with federal and state laws.

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