19. Independent Contractor/Employee Flashcards Preview

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Flashcards in 19. Independent Contractor/Employee Deck (12)
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1
Q

True or False?

All licensed salesperson and associate broker are required by law to work under the supervision of a sponsoring broker.

A

True, license law does not excuse brokers from the responsibility of supervision over their sales staff at all times.

2
Q

True or False?

As an independent contractor, a sponsoring broker does not need to supervise their activities.

A

False, Real Property Law requires that sponsoring brokers supervise their licensees at all times.

3
Q

What percentage does tax law require every taxpayer to pay annually?

A

15.3%

4
Q

Who is covered by unemployment insurance and workers’ compensation?

A

Employees of the broker. This does not apply to Independent contractors.

5
Q

In these increasingly litigious times, it has become common for more companies to turn to errors and omissions insurance. Errors and omissions insurance will normally not cover the following acts:

A

Errors and omissions will normally not cover
Fraud
Antitrust
Fair housing violations

6
Q

Unlike salespersons who are employees, independent contractors

a) take self employment income tax deductions
b) qualify for paid vacations.
c) collect workers’ compensation.
d) file for unemployment compensation.

A

Unlike salesperson who are employees, independent contractor take self employment income tax deductions.

7
Q

A broker may require a salesperson who is an independent contractor to

a) accept a regular salary.
b) have an oral contract.
c) comply with Article 12-A of Real Property Law.
d) work established hours.

A

A broker may require a salesperson who is an independent contractor to comply with Article 12-A of Real Property Law.

8
Q

A salesperson who is an independent contractor is entitled to

a) federal and state withholdings.
b) supervision and guidance.
c) workers’s compensation.
d) unemployment insurance.

A

A salesperson who is an independent contractor is entitled to supervision and guidance.

9
Q

An independent contractor is generally

a) paid a regular salary, with commissions as a bonus.
b) reimbursed for all business expenses.
c) paid commissions on sales.
d) given two weeks paid vacation each year.

A

An independent contractor is generally paid commissions on sales.

10
Q

How often should the contract between the broker and the independent contractor salesperson be renewed?

a) Every quarter.
b) Every six months.
c) Every 15 months.
d) Only when the agreement changes.

A

Every 15 months.

11
Q

An employee is legally required to receive

a) an employer-sponsored retirement plan.
b) unemployment insurance.
c) health insurance.
d) commissions on sales.

A

unemployment insurance

12
Q

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

a) pay for the individual’s automobile expenses.
b) pay the individual for hours spent in the office.
c) obtain the individual’s Social Security number.
d) require the individual to fill out a W-4 form.

A

Whether a licensee is an independent contractor or an employee, the broker must obtain the individual’s Social Security number.