I have a few questions on independent contractor vs employee. I have read through
the 20 points the IRS has for classifying this issue, but I am having a hard time
concluding which way the IRS would view my situation.
I am a guitar teacher and work for a music store teaching lessons. 95% of the business of the studio is from lessons, there is very little retail or other services offered. They attract and manage the students and receive their payments, arrange scheduling etc. The owner interviewed me directly and set the rate for my compensation. The owner dictates when teachers get raises. The studio does not withold any taxes and I receive a 1099. I was given my own room with my name on the door and I am not allowed to teach
studio students anywhere else but at the studio. The room is furnished with a white board, guitar amp, and desk. I use my own guitar, cables, and books. I teach the same students each week and have given her a schedule of when I will be there and when I will not. The term for my work is indefinite. I am allowed to take time off when I choose, provided I give a weeks notice. However, I cannot contact the students or parents directly to schedule or for any other reason, but instead must go through the studio . Most of the teachers there do not teach outside of the studio, though I do. I have a business name, though I am the
only person associated with the business. They pay me by my name and not by my business name and we receive payment twice a month.
They have a clause in our contracts that states we cannot teach elsewhere within 5 miles of the studio. If a problem with a student occurs the owner speaks with the teachers directly. They also mandate a dress code, though nothing that the studio provides. For the most part I have a large bit of control of how I teach, and I have not been trained by the studio. However, there have been times a parent has complained about an issue to the studio (I am not generally allowed to speak with the parents), and the owner has "asked" me to do something different - generally with the idea that if I do not follow through with the owners request I won't continue to teach there. Other than this kind of behavior, we do not have periodic reviews. The teachers sign contracts which indicate that we are contract labor and not employees. There really doesn't seem to be a way for me to take a loss while working there. I don't believe I would be allowed to hire someone else to do my work for me, though this has never been addressed.
Given these conditions is it a clear case how the teachers should be classified?
Another question is about rescheduling students who miss their lessons. It has been the policy of the studio to require teachers to teach a makeup lesson for which the teacher does not get paid for. As a contract laborer, should I not be receiving payment regardless of whether or not the student shows up if my presence is required by the studio?
Is the stipulation that teachers are not allowed to teach within 5 miles of the studio an illegal one?
Lastly, does the contract labor/employee classification effect who has legal right to the students? If I were to quit teaching there and some of the students wanted to continue with me outside the studio could I be sued? Does this depend on what is in our contracts or is there an overriding law that governs this?
I know this has been a bit lengthy but I wanted to be specific as possible as to my situation. A huge thanks ahead of time to whomever responds!
the 20 points the IRS has for classifying this issue, but I am having a hard time
concluding which way the IRS would view my situation.
I am a guitar teacher and work for a music store teaching lessons. 95% of the business of the studio is from lessons, there is very little retail or other services offered. They attract and manage the students and receive their payments, arrange scheduling etc. The owner interviewed me directly and set the rate for my compensation. The owner dictates when teachers get raises. The studio does not withold any taxes and I receive a 1099. I was given my own room with my name on the door and I am not allowed to teach
studio students anywhere else but at the studio. The room is furnished with a white board, guitar amp, and desk. I use my own guitar, cables, and books. I teach the same students each week and have given her a schedule of when I will be there and when I will not. The term for my work is indefinite. I am allowed to take time off when I choose, provided I give a weeks notice. However, I cannot contact the students or parents directly to schedule or for any other reason, but instead must go through the studio . Most of the teachers there do not teach outside of the studio, though I do. I have a business name, though I am the
only person associated with the business. They pay me by my name and not by my business name and we receive payment twice a month.
They have a clause in our contracts that states we cannot teach elsewhere within 5 miles of the studio. If a problem with a student occurs the owner speaks with the teachers directly. They also mandate a dress code, though nothing that the studio provides. For the most part I have a large bit of control of how I teach, and I have not been trained by the studio. However, there have been times a parent has complained about an issue to the studio (I am not generally allowed to speak with the parents), and the owner has "asked" me to do something different - generally with the idea that if I do not follow through with the owners request I won't continue to teach there. Other than this kind of behavior, we do not have periodic reviews. The teachers sign contracts which indicate that we are contract labor and not employees. There really doesn't seem to be a way for me to take a loss while working there. I don't believe I would be allowed to hire someone else to do my work for me, though this has never been addressed.
Given these conditions is it a clear case how the teachers should be classified?
Another question is about rescheduling students who miss their lessons. It has been the policy of the studio to require teachers to teach a makeup lesson for which the teacher does not get paid for. As a contract laborer, should I not be receiving payment regardless of whether or not the student shows up if my presence is required by the studio?
Is the stipulation that teachers are not allowed to teach within 5 miles of the studio an illegal one?
Lastly, does the contract labor/employee classification effect who has legal right to the students? If I were to quit teaching there and some of the students wanted to continue with me outside the studio could I be sued? Does this depend on what is in our contracts or is there an overriding law that governs this?
I know this has been a bit lengthy but I wanted to be specific as possible as to my situation. A huge thanks ahead of time to whomever responds!
