Which statement about unlicensed personal assistants is true?

Which statement about unlicensed personal assistants is true?

• A. They can be classified as independent contractors for tax purposes.
• B. They are not required to pay any taxes.
• C. They are automatically licensed professionals.
• D. They cannot be independent contractors and must pay withholding taxes.

Answer: (D)

Unlicensed personal assistants perform only clerical tasks under the licensee’s supervision and cannot engage in activities that require a real estate license. Because their work is directed by the licensee and they operate under the licensee’s control, they are treated as employees for tax purposes rather than independent contractors. This means the broker must withhold Social Security, Medicare, and income taxes from their wages. They are not automatically licensed professionals, and they are not exempt from taxes. While some workers can be independent contractors in different contexts, unlicensed personal assistants in this role are typically employees, which is why withholding taxes apply.

Unlicensed personal assistants perform only clerical tasks under the licensee’s supervision and cannot engage in activities that require a real estate license. Because their work is directed by the licensee and they operate under the licensee’s control, they are treated as employees for tax purposes rather than independent contractors. This means the broker must withhold Social Security, Medicare, and income taxes from their wages. They are not automatically licensed professionals, and they are not exempt from taxes. While some workers can be independent contractors in different contexts, unlicensed personal assistants in this role are typically employees, which is why withholding taxes apply.