Module 5 Quiz
At the end of the year, what form will a real estate salesperson who files as an independent contractor receive that details his or her compensation for the year?
1099 MISC, which details any commission-based income.
What expenses may licensees who have an employee status deduct from their income taxes?
Nothing. For an employee licensee, all compensation is considered wages, and no deductions are allowed.
Walter works for XYZ Brokerage. He sets his own hours, but broker BOB requires Walter to use specific forms and follow certain procedures. Walter is most likely classified by the IRS as
a statutory non-employee. Because he maintains independence in his work schedule.
Of these options, which is not required by New York law to be included in the records a broker maintains about a sales transaction? a) amount of deposit paid b) amount of commission paid c) number of hours worked by the agent d) purchase price
c) number of hours worked by the agent
An employer is responsible for withholding each of these from an employee's paycheck except a) income tax b) medicare tax c) property tax d) social security tax
c) property tax
Which IRS classification would not be applicable to a real estate agent? a) employee b) independent contractor c) statutory employee d) statutory non-employee
c) statutory employee. a real estate licensee would never be a statutory employee.
An important part of the relationship between a broker and an independent contractor salesperson is that the salesperson
earns commission based on the results of his work efforts.
Which is not one of the factors used by the IRS to determine that a real estate agent qualifies as a statutory non-employee? a) has a fiduciary relationship with clients b) paid for output, not hours worked c) properly licensed d) written and signed contract with broker
has a fiduciary relationship with clients.
A common law independent contractor
is not subject to withholding requirements.
Which is not a control granted by New York law to brokers over agents?
scheduling.