A sales associate employs a licensed personal assistant. The assistant will prepare CMAs, design property flyers, hold open houses, and prospect for listing appointments. The assistant will be paid a salary of $12 per hour and 20% of the commissions received by the sales associate. Which method of payment will satisfy all legal requirements?

A) the associate may pay the salary and withhold taxes, but the broker must pay commissions.

Explanation:

The sales associate works for the broker and his/her assistant works for him. Therefore the sales associate is responsible for paying the assistant's salary and withhold taxes since he is the employer. But since the assistant will also earn 20 percent of the sales associate's commissions, that should be paid by the broker directly (80% to the sales associate and 20% to the assistant).

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