Software Development Terms and Conditions V2.0 January 2013 Elysium Ltd Milton House Whitehill Road Crowborough East Sussex TN6 1LB Tel: 01892 667411 Fax: 01829667433 Email: email@example.com No, the qualification of independent legal contractor in accordance with IRS rules only applies to federal income taxes. Whether State income taxes should be withheld from the income of a real estate professional is a matter of national law. Brokers should review the existing national legislation in which they operate. The Independent Contractor Agreement for Sales Associate (TAR 2301) describes the rights of the broker and agents with respect to fees earned upon termination of agent sponsorship. Pursuant to paragraph 16C of the Contract, an agent`s fees are earned at the time a broker`s fees are earned under the agreement in effect for brokerage services, unless the fees are subject to arbitration or litigation. Each brokerage contract defines when a broker`s fees are earned. An agreement with an independent contractor is a very important element in setting up an independent contractor relationship with a real estate seller, but the existence of an agreement is not enough to avoid misclassification. Courts and supervisory authorities will look at the reality of the relationship, how the parties have interfered and the control exercised by a broker over the real estate seller in order to determine the true nature of the relationship between the parties. . . .