Agency
The 'right to control' test in determining employment versus independent contractor status in real estate focuses on whether:
AThe worker is paid on commission
BThe brokerage controls the manner and means by which the licensee performs their work✓ Correct
CThe worker has a written contract
DThe worker provides their own equipment
Explanation
The primary test for employment vs. independent contractor status is the right to control. If the brokerage controls how (not just the end result) the licensee works, the IRS may treat the relationship as employment. Most real estate licensees are independent contractors under written agreements.
Related Tennessee Agency Questions
- In Tennessee, 'designated agency' allows a brokerage to:
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