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Run the Payroll Fee Auditor →Blog · Payroll Management · Real Estate
Real Estate Agencies: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for real estate brokerages starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: IRS, Reporting payments to independent contractors. 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.
Records specific to real estate brokerages
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 federal baseline every employer keeps
29 CFR 516 requires payroll records for three years and the records they were computed from, time cards, schedules and piece or commission records, for two years. Employment tax records stay four years after the return they support. Forms I-9 stay three years from hire or one year from separation, whichever is later. For real estate brokerages the practical rule is that the pay codes for commission-only agent payroll and agent contractor vs W-2 classification produce records of their own, and an audit reads those, not the summary.
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.
- 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 how to prepare for a payroll audit, and the rest of the real estate brokerage payroll library.
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Frequently Asked Questions
Real estate brokerage records: IRS, Reporting payments to independent contractors
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.
How long does a real estate brokerage keep payroll records?
Three years for payroll records and two for supporting time records under the FLSA, four years for employment tax records under the IRS rule, and longer where an industry rule cited above says so.
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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