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Real Estate Agencies: Payroll Compliance Guide (2026)
Payroll compliance for real estate brokerages rests on the federal rules that reach this industry specifically, 3 of which are cited on this page, plus the deposit and filing duties every employer carries. BEG runs real estate brokerage payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
The rules that reach real estate brokerages specifically
The outside sales exemption from minimum wage and overtime requires that the employee's primary duty be making sales or obtaining orders or contracts, and that the employee be customarily and regularly engaged away from the employer's place of business. The salary requirements of the regulation do not apply to this exemption.
Any fixed site, including a home office, that a salesperson uses as a headquarters or for telephone solicitation is treated as one of the employer's places of business. Sales made by mail, telephone, or the Internet do not count as outside sales unless that contact is only an adjunct to personal calls.
Administrative and office staff who do not meet an exemption must receive overtime at one and one-half times the regular rate for hours over 40 in a workweek. The standard salary level for the executive, administrative, and professional exemptions is $684 per week ($35,568 per year).
The duties every employer carries
Federal income tax withholding, Social Security and Medicare, FUTA, deposits on the monthly or semiweekly schedule the lookback period sets, quarterly Form 941, annual W-2s and, for real estate brokerages paying contractors, 1099-NEC at the $2,000 threshold in force for tax years after 2025. A late deposit starts at a 2 percent failure-to-deposit penalty and climbs to 15 percent.
Paper Forms 1099-NEC must be submitted with Form 1096, with a separate Form 1096 for each type of information return. Form 1096 is not required when filing electronically.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- The outside sales exemption from minimum wage and overtime requires that the employee's primary duty be making sales or obtaining orders or contracts, and that the employee be customarily and regularly engaged away from the employer's place of business. The salary requirements of the regulation do not apply to this exemption. [DOL Fact Sheet #17F]
- Any fixed site, including a home office, that a salesperson uses as a headquarters or for telephone solicitation is treated as one of the employer's places of business. Sales made by mail, telephone, or the Internet do not count as outside sales unless that contact is only an adjunct to personal calls. [DOL Fact Sheet #17F]
- Administrative and office staff who do not meet an exemption must receive overtime at one and one-half times the regular rate for hours over 40 in a workweek. The standard salary level for the executive, administrative, and professional exemptions is $684 per week ($35,568 per year). [DOL WHD, Earnings thresholds for the EAP exemption (29 CFR 541.600)]
- Paper Forms 1099-NEC must be submitted with Form 1096, with a separate Form 1096 for each type of information return. Form 1096 is not required when filing electronically. [IRS, Reporting payments to independent contractors]
Read the full guide to the payroll compliance library, and the rest of the real estate brokerage payroll library.
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Frequently Asked Questions
Real estate brokerage compliance: DOL Fact Sheet #17F
The outside sales exemption from minimum wage and overtime requires that the employee's primary duty be making sales or obtaining orders or contracts, and that the employee be customarily and regularly engaged away from the employer's place of business. The salary requirements of the regulation do not apply to this exemption.
Real estate brokerage compliance: DOL Fact Sheet #17F
Any fixed site, including a home office, that a salesperson uses as a headquarters or for telephone solicitation is treated as one of the employer's places of business. Sales made by mail, telephone, or the Internet do not count as outside sales unless that contact is only an adjunct to personal calls.
Real estate brokerage compliance: DOL WHD, Earnings thresholds for the EAP exemption (29 CFR 541.600)
Administrative and office staff who do not meet an exemption must receive overtime at one and one-half times the regular rate for hours over 40 in a workweek. The standard salary level for the executive, administrative, and professional exemptions is $684 per week ($35,568 per year).
What does managed payroll cost for a real estate brokerage?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Commission-only agent payroll, agent contractor vs W-2 classification and split commission processing are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Real Estate Agencies. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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