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Practice Of Real EstateBrokerage_operationsEASY

A brokerage requires a worker to keep set office hours, closely directs how she performs her daily tasks, and pays her a salary with income tax, Social Security and Medicare withheld from each check. What status best describes that worker?

Correct Answer

D) Employee

Worker status turns on the degree of control the firm exercises over how the work is done, not on what the parties call the relationship. Set hours, direction of daily methods and payroll withholding are the classic marks of employment, so the firm owes payroll taxes and must supervise accordingly. A written label of 'independent contractor' does not survive facts like these.

Answer Options
A
Independent contractor
B
Statutory nonemployee
C
Broker-associate
D
Employee

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Related Topics & Key Terms

Key Terms:

brokerage_operationspracticeemployee

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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