45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 2 Unit 3 Exam

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Question #1
Real estate licensees may be classified as ______ for tax purposes, even though they're subject to supervision from a more experienced broker.
A.   Employees
B.   Employment agency employees
C.   Unlicensed assistants
D.   Independent contractors
Question #2
Which type of worker, though an independent contractor, is defined as an employee by statute for certain employment tax purposes? A food delivery driver who is paid on commission is an example.
A.   Statutory non-employee
B.   Common law employee
C.   Independent contractor
D.   Statutory employee
Question #3
What happens if an independent contractor earns $600 or more during the tax year?
A.   Nothing, but the worker must still pay self-employment taxes.
B.   The independent contractor must change his worker classification to employee and have taxes taken out of his pay.
C.   The worker's brokerage firm must prepare and submit forms 1096 and 1099 to the IRS and distribute form 1099 to the worker.
D.   The broker must withhold income taxes and FICA from the worker's pay.
Question #4
Andrew just received a compensation check from his brokerage firm. Since Andrew is an independent contractor, what determines how he's paid?
A.   Andrew's sales
B.   The number of hours that Andrew worked
C.   Andrew's date of hire
D.   The number of sales agents at the brokerage

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