Chapter 7 Review Flashcards
A broker must withhold federal income tax from
An employee’s pay.
When negotiating an independent contractor agreement, which question should NOT be asked?
How many hours am I required to work each week?
A broker must pay unemployment taxes, workers’ compensation, and disability insurance for any employee earning
any amount per week.
Which of the following is NOT part of the safe harbor test?
Income tax withheld from wages
Which of these statements about an independent contractor is true?
He or she is paid commission on all sales.
Which of the following situations would cause the IRS to think that a contractor is really an employee?
The licensee takes paid sick days.
What is the suggested length of time for a contractor’s agreement?
12 months
A broker must file an IRS Form 1099-MISC for an independent contractor who earns more than
$600
Which of the following can be required of an independent contractor?
Maintain proper licensing
How often should the broker review the written agreement with the independent contractor?
Every year
DOS Regulation 175.23 requires that a broker do what?
Keep written records of all real estate listings any salesperson obtains.
What can a broker require of his independent contractors?
They must have a signed a written work agreement.
Participation is defined to include active service for how many weeks in a year?
50
