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Joe has a valid real estate license that he put with his brother Sam, who is an active broker and owns a brokerage firm. However, Joe never signed a written employment agreement with Sam. For IRS federal income tax purposes, Joe is considered:

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Joe will be considered as an employer for the IRS federal income tax.

What is an income tax?

This refers to the tax that is paid on the amount that an individual earns per month.

Because of the computation of Tax payment, Joe will be considered as an employer for the IRS federal income tax because he is responsible for brother Sam engagement in the firm.

Read more about income tax

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