[{"data":1,"prerenderedAt":95},["ShallowReactive",2],{"guide-question-maryland-contractor-simulator-worker-classification":3},{"site":4,"simulation":15,"topic":23,"question":26,"siblings":52,"prev":93,"next":94},{"name":5,"tagline":6,"title":7,"description":8,"guideTitle":9,"guideDescription":10,"ogImage":11,"disclaimer":12,"practicePitch":13,"citationsTitle":14},"Free MHIC Training","Maryland home improvement exam prep","Free MHIC Exam Prep: Maryland Home Improvement Contractor Practice","Free, narrated MHIC exam prep: 147 real Maryland contractor scenarios, every choice explained, with the law cited where it applies.","MHIC Exam Study Guide","Every scenario in the free Maryland Contractor Simulator, written out as a practice question: the situation, your options, how each choice plays out, and the Maryland law where it applies.","/og/free-mhic-training.png","Free MHIC Training is free study material for the Maryland home improvement contractor exam. It is not affiliated with the Maryland Home Improvement Commission and is not legal advice.","The free Maryland Contractor Simulator puts you in situations like these across a 40-day contracting career, narrated, with your license on the line. No account needed.","Law and codes cited",{"slug":16,"title":17,"subtitle":18,"description":19,"maxTurns":20,"characterCount":21,"scenarioCount":22},"maryland-contractor-simulator","Maryland Contractor Simulator","Learn the law by living it.","You just got your MHIC license application approved and you're starting your home improvement business in Maryland. Navigate real contractor scenarios — contracts, permits, clients, subcontractors, and inspectors. Every choice teaches you the law through consequence, not memorization. Master all five exam areas to pass.",40,20,147,{"slug":24,"title":25},"subcontractors-employees","Subcontractors, Liens & Workers",{"slug":27,"title":28,"description":29,"takeaway":30,"situation":31,"speaker":34,"speakerDescription":34,"speakerAvatar":34,"audioUrl":35,"choices":36,"citations":51},"worker-classification","Are your regular workers employees or 1099 contractors?","Employees, if you control when, where, and how they work, provide the tools, and set their schedule.","Employees, if you control when, where, and how they work, provide the tools, and set their schedule. Maryland follows IRS guidelines, and misclassification brings back taxes, penalties, and workers' compensation liability.",[32,33],"Tax season is approaching. You have three guys who work for you regularly — they use your tools, follow your schedule, and you direct their work daily. You've been paying them as 1099 independent contractors.","Your accountant raises an eyebrow. \"These guys aren't contractors. They're employees.\"",null,"/media/voices/worker_classification.mp3",[37,42,47],{"text":38,"verdict":39,"label":40,"explanation":41},"Listen to the accountant. Reclassify them as W-2 employees, set up payroll withholding, workers comp, and unemployment insurance","best","Correct","Maryland follows IRS guidelines for worker classification. If you control when, where, and how they work, provide tools, and set their schedule — they're employees, not independent contractors. Misclassification violates Maryland labor law, exposes you to back taxes, penalties, and workers comp liability. The MHIC exam tests labor law knowledge — this is one of the 3 labor law questions on the exam.",{"text":43,"verdict":44,"label":45,"explanation":46},"Keep them as 1099 — it's cheaper and they prefer it too","wrong","Illegal","Worker preference doesn't determine classification. The IRS behavioral, financial, and relationship tests determine employee vs. contractor status. If you control their work, they're employees. Misclassification penalties include: back payroll taxes + interest, state unemployment fund penalties, workers comp violations, and potential criminal tax fraud. Maryland actively investigates worker misclassification in construction.",{"text":48,"verdict":44,"label":49,"explanation":50},"Have them form their own LLCs so they're technically businesses, not employees","Doesn't work","Creating shell LLCs to disguise an employment relationship is a well-known scheme that the IRS and Maryland Department of Labor see through immediately. 'Economic reality' tests look at the actual working relationship, not the paperwork structure. This actually makes it worse — it shows intentional avoidance rather than honest misunderstanding.",[],[53,56,59,62,65,68,71,74,77,80,83,84,87,90],{"slug":54,"title":55,"topic":24},"subcontractor-payment","Must you pay subcontractors when the homeowner pays late?",{"slug":57,"title":58,"topic":24},"tony-files-lien","What happens when an unpaid subcontractor files a mechanics lien?",{"slug":60,"title":61,"topic":24},"lien-rights-education","Can a subcontractor put a lien on a house the owner paid in full?",{"slug":63,"title":64,"topic":24},"client-wants-to-pay-sub-directly","Should a homeowner pay your subcontractor directly?",{"slug":66,"title":67,"topic":24},"mike-unlicensed-electrical","What if your electrician's license expired mid-job?",{"slug":69,"title":70,"topic":24},"subcontractor-not-licensed","Can you hire a plumber who is still getting licensed?",{"slug":72,"title":73,"topic":24},"homeowner-does-own-electrical","Can a homeowner do their own electrical work on your job?",{"slug":75,"title":76,"topic":24},"multiple-subs-coordination","Who coordinates subcontractors working in the same space?",{"slug":78,"title":79,"topic":24},"subcontractor-damages-property","Who is liable when a subcontractor damages the home?",{"slug":81,"title":82,"topic":24},"cousin-ray-no-show","How do you handle a subcontractor who stops showing up?",{"slug":27,"title":28,"topic":24},{"slug":85,"title":86,"topic":24},"workers-comp-claim","What must you do when an employee is hurt on the job?",{"slug":88,"title":89,"topic":24},"worker-injury-no-comp","What happens when an off-the-books worker is injured?",{"slug":91,"title":92,"topic":24},"hiring-day-laborers","What are the risks of hiring day laborers for cash?",{"slug":81,"title":82,"topic":24},{"slug":85,"title":86,"topic":24},1792184485362]