What is the exam-ready answer?
| Roadmap lesson | 115 of 500 |
|---|---|
| Official syllabus topic | Employee Versus Independent Contractor Status |
| Official PSI area | Practice of Real Estate |
| Published area weight | 12% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Control factors
Instructions, training, scheduling, tools, unreimbursed expenses, opportunity for profit or loss, benefits, permanence, and whether services are central to the business can inform classification under the applicable test.
Written agreement
A written independent-contractor agreement documents intent and responsibilities but cannot override the real facts or a mandatory legal test.
Statutory nonemployee tax rule
Qualifying licensed real estate agents can be treated as statutory nonemployees for federal tax purposes when compensation is substantially sales-based and services are performed under a written contract stating they are not employees for federal tax purposes.
Broker supervision
State real estate law can require broker control over licensed activity even when the affiliated licensee is an independent contractor for tax purposes.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A salesperson is paid only by commissions under a tax independent-contractor agreement and claims the broker cannot review advertising.
Reason it through. Tax treatment and licensing supervision answer different questions. Georgia brokerage activity remains supervised.
Answer. The broker can and must exercise the supervision required by Georgia real estate law.
Common exam traps
- Letting the contract label decide everything
- Equating tax status with no supervision
- Using one legal test for every statute
- Ignoring actual work practices
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Does an independent-contractor label alone control status?
- A. Yes
- B. No
- C. Only for licensees
- D. Only if notarized
Show answer and explanation →
Answer: B. No
The applicable law and actual relationship determine classification.
Question 2Can a tax-independent Georgia salesperson ignore broker advertising review?
- A. Yes
- B. No
- C. Only online
- D. Only for personal listings
Show answer and explanation →
Answer: B. No
Broker supervision continues under license law regardless of tax status.
Question 3Which federal tax factor concerns instructions and training?
- A. Behavioral control
- B. Situs
- C. Contribution
- D. Redlining
Show answer and explanation →
Answer: A. Behavioral control
Behavioral control examines the right to direct how work is performed.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Antitrust: Price Fixing, Market Allocation, Boycotts, and Tie-Ins. Continue to roadmap lesson 116 and build on this decision rule.
Return to the Practice of Real Estate hub to see every official branch and the complete lesson sequence for this content area.