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16 Cards in this Set
- Front
- Back
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The factors that determine whether the relationship is contract or employee are:
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the amount of control, direction, and supervision the broker has over the services being performed.
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Licensees working for a broker can be classified in one of four ways:
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1. Statutory Employee
2. Statutory non-employee 3. Independent Contractor 4. Employee |
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Statutory Employee
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Independent contractors specifically classified as employees by statute for SS and Medicare taxes
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Statutory Non-Employee
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Direct sellers and licensed real estate agents; treated as independent contractors for all tax purposes if certain conditions are met.
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Independent contractor
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individual who is self employeed.
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Employee
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someone who works under the direction and control of another
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Three catagories of common law rules determined the relationship between a worker and business is that of an employee or independent contractor:
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1. Behavioral Control
2. Financial Control 3. Type of relationship of the parties |
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Independent contractors must make sure they meet criteria for claiming independent contractor or
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The business & licensee could face fines & penalties from the IRS
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What are the two specific codes in NY law directing the operation of independent contractor relationship
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1. Section 175.21
2. Section 175.23 |
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Section 175.21
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Enforces the supervision of a salesperson by a broker and enumerates the specific controls granted to the broker. The broker must provide ongoing personal guidance, instruction, and oversight to the sales person.
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Section 175.23
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Details recordkeeping reqmts. the broker must maintain 3 years of records of all sales of 1-4 family dwellings.
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Sec 175.23 (9)Information need to maintain records must contain:
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1. Name/address of seller
2. Name of buyer 3. Mortage, if applicable 4. Purchase price 5. Resale price, if applicable 6. the amount of deposit pd on contract 7. amt of commission pd to broker 8. expenses regarding procuring a mortgage loan 9. Net commission or net profit realized by the broker. |
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What is not reqd by NY law to be included in the records a broker maintains about a sales transaction
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Number of hrs worked by the agent.
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What is a REALTOR
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A member of The National Association of REALTORS, a PVT trade Associaton
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RE Salesppl, who are employed by a RE broker, will be categorized by the IRS in two ways. They are
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Employees or independent contractors.
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Salespersons activites involving real property
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include list and sell, rent and manage,exchange, auction, or relocat
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