Final answer:
A broker who employs salespeople as independent contractors has the benefit of not having to pay employee benefits or incur payroll taxes. Independent contractors are responsible for their own taxes and other expenses. This arrangement also provides flexibility and potential performance incentives for the salespeople.
Step-by-step explanation:
A broker who employs salespeople as independent contractors rather than employees has the benefit of not having to pay employee benefits or incur payroll taxes.
Independent contractors are responsible for their own taxes and other expenses.
Furthermore, employing salespeople as independent contractors gives the broker more flexibility in managing their workforce.
They can set their own schedules and work on a commission basis, which can incentivize salespeople to perform better.
However, it's important to note that there are legal distinctions between employees and independent contractors, and it's essential for the broker to adhere to the laws and regulations regarding independent contractors.