Income Verification

Accounting Support is currently developing ways to assist agents with providing status and proof of earnings as they are considered to be Self-Employed individuals.

Here in Accounting Support, we are developing ways to assist an agent to provide proof of earnings in lieu of HR as Licensed Agents with eXp Realty, LLC are considered to be Self-Employed.

We have created an Income Verification on letterhead with a signature that can state the Sales Volume, GCI, and/or the Net Commission of the individual; based upon request and the needs of the agent.

Our agents do have access to the data, however, it is not in formal formatting as they are again considered to be Self-Employed / Independent Contractors who are responsible for reporting their own earnings.

To assist in these requests, we would like to explain how we keep record, report, and what we can state on a letterhead. Here in the Accounting dept, we keep record of the following categories of payments. These records can be used to provide proof or verification of earnings:

Sales Volume, which is the total Transactional Value of a file brought into the Brokerage by the individual. This can include the Companies Commission, Co-Agents Commissions, as well as other transactional fees including but not limited to the Cap Fee. This number does not represent monies earned by the individual.

The GCI Gross Commission Income, which is the initial dollar value brought into the company by the Sales Agent; before the Company Split and Transactional Fees are deducted

The Net Commission, which is after the Company Commission and Transactional Fees are deducted from GCI; but can include the Stock Contribution and Transaction Coordinator / Assistant Fees; if applicable as they are considered to be commission earned by the Sales Agent until distributed

The Net Payment, which is the Take Home Pay; this is after Stock Contributions and Transaction Coordinator Fees / Assistant Fees are deducted or have been distributed

Note: All eXp Realty, LLC Sales Agents are 1099-NEC Contractors which are reported as follows on the 1099-NEC forms. eXp calculates the Net Commission by adding the Take Home and any Stock Contributions and / or TC Fees; which are considered to be a form of commission. This can also include the GRT Tax depending on the state in which they operate, and any Outstanding Receivables or Commission Overpayments; if applicable. Then the Transactional based Fees such as: (Mentor, Broker Review, and Risk Management) are totaled to sum up the 1099 income.

The 1099-NEC forms for 2023 were sent to the eXp email on file no later than January 31st of 2024.

If you should need assistance with a letterhead verifying your Status, Join Dates, and/or Proof of Income, please send an email into: Accounting@eXprealty.net.