From HomeschoolCPA, Carol Topp discusses factors that might indicate that a homeschool band instructor is an independent contractor. The question of properly classifying workers sometimes shows in places you wouldn’t expect! Carol writes:
You did tell me 3 things that seem to imply that your band director looks like an independent contractor (IC):
1. He teaches at another business
2. He is setting himself up as a business owner (“planning on incorporating as an LLC”)
3. He is not paid by the hour (“He gets a percentage of each students monthly tuition”).
But there are many other factors to consider, mainly how much control your organization will have over him and his work. I discuss the other factors to consider in my ebook Paying Workers in a Homeschool Organization
If you determine he is an IC, then I strongly advise you to have a written contract with him and clearly spell out that he is hired as an IC and responsible for his own taxes (i.e. your organization will not be withholding any tax). Have him fill out a W-9 to collect his legal name and Social Security Number (or EIN for his business), too. This is all covered in the Paying Workers ebook.
Read the full story at Is our homeschool band director an independent contractor? | HomeschoolCPA.com