HTML NYS Salesperson Practice Exam

Chapter 3 Independent Contractor Quiz

NYS Salesperson Practice Exam

1. What is the primary characteristic of an independent contractor in the real estate profession?
a) The broker controls the hours the contractor must work
b) The contractor determines their work schedule and pays their own taxes
c) The contractor receives health benefits from the broker
d) The contractor receives a salary from the broker
2. For a real estate salesperson to qualify as an independent contractor under New York State law, what must the broker provide?
a) A 401(k) plan
b) A weekly salary
c) A written independent contractor agreement
d) Paid vacation and sick days
3. Which IRS form is typically used to report income for an independent contractor in real estate?
a) W-2
b) 1099-MISC
c) W-4
d) 1040-EZ
4. A real estate salesperson who is an independent contractor must have their contract updated at least every:
a) 6–12 months
b) 12–15 months
c) 2–3 years
d) 5–10 years
5. According to IRS Code Section 3508 and New York Independent Contractor Law, which of the following is a requirement for a licensee to be treated as an independent contractor rather than an employee?
a) The broker must provide a company car and health insurance.
b) There must be a written contract between the broker and the licensee.
c) The broker must supervise the licensee's daily working hours.
d) The licensee must be paid an hourly wage regardless of sales volume.
6. What is the key difference between an employee and an independent contractor in real estate?
a) Employees are licensed, while independent contractors are not.
b) Independent contractors are supervised, while employees are not.
c) Employees have taxes withheld, while independent contractors are responsible for their own taxes.
d) Independent contractors can work for multiple brokers, while employees cannot.
7. Which of the following is NOT a requirement for independent contractor status under IRS guidelines?
a) Being licensed as a real estate agent
b) Having income based solely on sales output
c) Working under a written contract specifying independent contractor status
d) Attending mandatory sales meetings
8. Which of the following is a requirement for independent contractor status under New York State law?
a) The licensee must be paid a salary.
b) The licensee must work set hours.
c) The licensee must have a written contract with the broker.
d) The licensee cannot engage in outside employment.
9. Which of the following factors might indicate an employer-employee relationship rather than an independent contractor relationship?
a) The broker requires the salesperson to attend staff meetings.
b) The salesperson is paid a commission based on sales.
c) The salesperson has a written contract with the broker.
d) The salesperson works out of their own home.
10. What are the potential consequences for a broker if a salesperson is misclassified as an independent contractor?
a) Liability for unpaid taxes and insurance premiums
b) Loss of license
c) Fines and penalties
d) All of the above
11. Which of the following is a benefit of independent contractor status for a salesperson?
a) The ability to deduct business expenses on their tax return
b) Having taxes withheld from their commission
c) Being covered by unemployment insurance
d) Having a set work schedule
12. Which of the following would NOT be a condition you would find in an independent contractor agreement?
a. the broker will withhold taxes from the licensee's commission
b. the licensee can work from home
c. the broker and the licensee will follow New York Real Property Law
d. the licensee may hold an outside job