Pursuant to the agreement, all premiums collected by defendant are treated as in trust for Allstate. Premiums are remitted to Allstate without any deduction for commission or expenses. The accounts are owned by Allstate rather than defendant. Inc. hires and fires all defendant's employees, with Allstate approval. Defendant may hire or fire an employee only with the approval of Payroll Partners and Allstate may direct defendant to terminate an employee.
Defendant establishes the base compensation rate of some employees, such as the receptionist.
Defendant is paid by Allstate and he receives a Form W-2 from Allstate. The Ersel Seiler agency is part of Allstate's neighborhood office program. Defendant receives an allowance for expenses from Allstate which is pegged to the agency's sales. He can use the allowance in any way he chooses. Because the allowance does not cover all expenses, defendant pays the difference from his compensation.