IRS auditors crackdown on independent contractors

According to CNNMoney, the IRS is going to do random audits of 6,000 companies that use independent contractors.

CNN Money: Auditors Crackdown on Indedendent Contractors

Homeschool organizations might be caught in the web if they are paying teachers as independent contractors.

Here’s what the article states:

(CNNMoney.com) — If your business uses independent contractors, get ready for new scrutiny. Hoping to boost tax revenue, the IRS and many state governments are cracking down on how companies classify their workers.

When employers report wages for independent contractors on IRS form 1099, rather than a W-2, they aren’t required to pay unemployment insurance, worker’s compensation insurance or payroll taxes for them. But the rules governing which workers are genuinely “independent” are strict — and often flouted.

The Internal Revenue Service launched a program last month that will randomly examine 6,000 companies over the next three years for employee misclassifications. The federal government estimates it will raise $7 billion over the next 10 through tighter enforcement.

Should you as a homeschool leader be concerned? Maybe, if your organization has been paying people as independent contractors when they are really employees. How can you tell the difference?

I can help.

Here are some helpful blog posts:

Is Your Hired Teacher Really an Employee?

Update on Teachers as Independent Contractors

I also have a short ebook devoted to the subject of paying workers in a homeschool organization. You can read a sample chapter and the table of contents here.

Cost $7.00

This 20 page ebook is available for immediate download.

I also did a free webinar on the topic in January.  Listen to it here.

HomeschoolCPA’s Workshops

Finally, I do phone consultations to discuss the particulars of your situation.  More information here.

http://homeschoolcpa.com/services/consultation/

You do not need to be afraid of an IRS if you have done some research, reading and are prepared correctly.

Carol Topp, CPA

Homeschool co-ops come in many sizes

Homeschool mother Beth at Learning Together blog discusses at least five different homeschool co-ops that she has been a part of.  Five co-ops! Does that sound overwhelming to you? It might be until you read Beth’s descriptions.  Many of the co-ops were very short term or very small with just a few families meeting in a home.

Multi-family Enrichment Co-op

This Co-op met for 8 weeks in the fall, and then met again in the spring with a new set of classes. It was a wonderful experience, exposing my children to a variety of skills and subjects that I might not have attempted – and lots of friendships were planted there.

Multi-Family Curriculum-based Co-op
A little over three years ago a group of friends met together to discuss starting a weekly Co-op based on the Tapestry of Grace curriculum. This Co-op started out with 13 families but has now grown to 18 families, and meets every Friday from 9:30 – 2:30 at a local church where we rent classroom space.

Yearlong Academic Co-op
I have done yearlong science co-ops with both my elementary and middle school kids. When Sarah was in 8th grade and Eric was in 6th, we did Apologia General Science. To keep us moving along and to make things a little more fun, we met with one other family every other Friday to do the experiments together.

Small Multi-Subject Co-op
Those co-op experiences led me to pursue even more similar situations, as I saw lots of good things happening both for me and for my children. A friend and I decided to get our 2 girls together twice a week for writing and Latin – I taught writing and the other mom taught Latin.

Short-term Co-ops
Years ago, when my oldest daughter was really into the American Girl books, I hosted an American Girl co-op at my house, which met once a week for 10 weeks. We read the books of one of the American Girl series.

Co-ops can come in all shapes and sizes.  If you cannot find a co-op in your area that meets your needs, why not start your own?  My book, Homeschool Co-ops: How to Start Them, Run Them and Not Burn out can get you started.

It is available at Amazon, BN.com and other on-line retailers.

Read more here.

Money Myths That Trip Up Homeschoolers

Over at Parent at the Helm, they are running my series on

Five Money Myths That Trip Up Homeschoolers

Myth #1:  Just a Little More Money Will Solve All My Problems

Truth: Problem is not lack of money, but lack of contentment

Read more here.

Carol Topp, CPA