Chapter 19

Question 1

If a sales person is an independent contractor, what is he entitled to.
A. Unemployment insurance
B. Supervision and guidance
C. Worker’s Compensation
D. Federal and state withholding

Answer 1

B

Question 2

An independent contractor is generally
A. Paid commission on sales
B. Given two weeks of paid vacation
C. Paid a regular salary
D. Reimbursed for all business expenses

Answer 2

A

Question 3

Unlike salespersons who are employees, independent contractors
A. Collect workers compensation
B. File for unemployment compensation
C. Take self employment income tax deductions

Answer 3

C

Question 4

A broker may require a salesperson who is an independent contractor to
A. Have an oral contract
B. Work established hours
C. Accept a regular salary
D. Comply with article 12A

Answer 4

D

Question 5

An employee is legally required to receive
A. Retirement plan
B. Health insurance
C. Unemployment insurance
D. Commissions in sales

Answer 5

C

Question 6

The salesperson who joins a real estate company as an independent contractor will probably have to pay for his own what?
A. Hospitalization insurance
B. Contact forms and for sale signs
C. Office space
D. Errors and omissions insurance

Answer 6

A

Question 7

Which section of real property law requires that sponsoring brokers supervise their licensees at all times?

Answer 7

175.21

Question 8

Is it up to the salesperson or the broker to choose what relationship they want to be?

Answer 8

Both

Question 9

Errors and omissions insurance will normally not cover which acts?

Answer 9

Fraud, antitrust, fair housing

Question 10

A broker may carry what insurance on all salespeople regardless of their status as employees or independent contractors?

Answer 10

Errors and omissions insurance

Question 11

Who pays for the cost of errors and omissions insurance?

Answer 11

It can either be the broker or the salesperson.

Question 12

The irs will not challenge independent contractor status where the associate
A. Is licensed as a real estate broker or salesperson
B. Has income based solely on sales output that isn’t tied in any way to hourly wage
C. Performs services pursuant to an executed written contract
D. The licensee is responsible for payment of their own income taxes
E. All of the above

Answer 12

E

Question 13

What does section 175.21 of real property law require?

Answer 13

That sponsoring brokers supervise their licensee at all times

Question 14

As an employer, a broker is required by the federal government to withhold Social Security tax and income tax from the compensation paid to employees. True or false?

Answer 14

True

Question 15

What do most salespersons act as?

Answer 15

Independent contractors

Question 16

Under New York State law, how often does the contract need to be renewed between the broker and the independent contractor salesperson?

Answer 16

Every 15 months

Question 17

Do independent contractors take self-employment income tax deductions?

Answer 17

Yes

Question 18

Whether a licensee is an independent contractor or an employee, the broker must obtain what?

Answer 18

The individuals Social Security number

Question 19

The sales person who joins a real estate company as an independent contractor will probably have to pay for his own

A. Hospitalization insurance.
B office space
C. Contract forms and for sale sign
D. Errors and omissions insurance.

Answer 19

A

Question 20

The broker whose associates are independent contractors may still insist that
A. Keep regular office hours
B. Sign a written contract for services
C. Attend sale meeting
D. Be paid by the hour.

Answer 20

B