Ch. 58 - Independent Contractor Agreements - Quiz Quesitons

In this type of program, an agent may start out at a lower percentage rate and then graduate to higher rate as his or her production increases. 1. Advancement payment plan 2. Step plan 3. Graduated payment plan 4. Progressive plan

Graduated payment plan

Which of the following must a broker legally provide to an employee? 1. Pension plan 2. Unemployment insurance 3. Health insurance 4. Sales commission

Unemployment insurance

Which of these guidelines is not part of the IRS safe harbor test? 1. Income must be based on sales input. 2. Contractors must have access to workers compensation benefits. 3. The contractor must be licensed as a real estate salesperson or broker. 4. There must be a written contract in place.

Contractors must have access to workers compensation benefits.

Which of the following must be included in an employment agreement? 1. Duty Assignment and Compensation 2. Management Structure and Benefits 3. Health Insurance and Expense Reporting 4. Travel Expenses and Sick Leave Policy

Duty Assignment and Compensation

Which of these statements about an independent contractor is true? 1. He or she gets a regular salary with bonuses. 2. He or she is reimbursed for all business expenses. 3. He or she is paid commission on all sales. 4. He or she will get three weeks of paid vacation every year.

He or she is paid commission on all sales.

If a licensee joins a company as an independent contractor, which of these will he probably have to pay for on his own? 1. Health insurance 2. Listing Ads 3. For Sale signs 4. Contract Form

Health insurance

Who established "safe harbor rules?" 1. IRS 2. MLS 3. IDFS 4. HUD

IRS

For an independent contractor, how is the issue of withholding tax dealt with by the managing broker? 1. Managing Broker withholds tax monies 2. Managing Broker pays all withholding tax monies 3. Managing Broker does not withhold tax monies 4. Managing Broker escrows all withholding tax monies

Managing Broker does not withhold tax monies

In an IRS audit, which of the following situations would cause the IRS to think that a contractor might really be an employee? 1. The license attends sales meetings. 2. The licensee gets a commission. 3. The licensee takes unpaid sick days. 4. The licensee receives an hourly wage.

The licensee receives an hourly wage.

What can a broker require of his independent contractors? 1. They must work at the office. 2. They must receive a salary. 3. They must attend weekly sales meetings. 4. They must sign a written agreement.

They must sign a written agreement.