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 are kept under the broker’s supervision to perform non-licensing, administrative tasks, and their tax treatment follows worker classification rules. Because they are paid as employees under the broker, payroll taxes are withheld from their wages (Social Security, Medicare, income tax), and the broker provides a W-2. Independent contractor status would mean no tax withholding and a 1099, which isn’t the typical arrangement for unlicensed assistants who operate under the broker’s control and direction. So the statement that they cannot be independent contractors and must pay withholding taxes aligns with how these workers are usually treated in real estate offices.