Salesperson Independent contractor

If a real estate salesperson is working as an independent contractor then she will have:

  1.  income tax witheld from her salary
  2.  Social Security tax witheld from her salary
  3.  unemployment insurance
  4.  worker’s compensation coverage

The answer is D.  Even though a salesperson is treated as an independent contractor for tax and other purposes, the California Labor and Workforce Development Agency considers them to be employees for worker’s compensation purposes.  This means that the employing broker must obtain worker’s compensation insurance for the salespeople under him or her.