What should a Classical Conversations tutor do if she thinks she’s misclassified?

 

How should Classical Conversations’ tutors handle their employment situation? They are required to use a specific curriculum, during a specific time and attend training.

In light of Landry Academy switching to employees but still not being able to stay in business, I am wondering what your thoughts are.

-KT

 

KT,

The closing of Landry Academy in late December 2016 was certainly sad and an eye opener. I don’t know the details of what happened to them, but it does seem they underwent an IRS audit and had to reclassify their teachers as employees.

I usually advise the business owners such as a Director of a CC community, but you are asking what should the CC tutor (i.e. the worker classified as an independent contractor) do if she thinks she is misclassified and should be treated as an employee.

1. Always report in full ALL your earned income received from CC on your tax return, even if you do not receive a 1099-MISC or W-2.

2.  Discuss your classification with your CC Director. Express your concern for her potential liability if she is misclassifying workers. Tell her about this IRS website and my book Paying Workers in a Homeschool Organization. I also offer a service for business owners like CC Directors or nonprofit leaders to help them correctly classify and compensate their workers.

3.  Discuss your classification with your tax preparer. Seek his or her opinion on whether you wish to take advantage of the IRS reporting program. Visit this IRS page for details. If you do not have a tax preparer, you can arrange a phone consultation with me to discuss your particular situation.

Most important is for you to follow #1: Report all your earned income on your tax return even if you do not receive a 1099-MISC from your CC Director.

Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders (and tutors!)

 

 

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Comments

  1. KinPhilly says:

    So if you are employed on a 1099 basis as a tutor, but claim 100% of the income on your tax return (and claim appropriate expenses against it – the tin whistle for the tutor, paper, dry erase markers, etc), could the TUTOR be in trouble? Is there a duty to report to the IRS? Or just opportunity?

  2. Carol Topp says:

    The responsibility of any hired contractor is to report all their income to the IRS (even if the contractor did not receive a 1099-MISC) and pay their taxes.
    The responsibility of properly classifying the worker as an employee or independent contractor is on the shoulders of the employer, not the worker. It is the employer who will pay penalties and taxes if they misclassified an employee as an independent contractor. I discuss those penalties in this blog post: What are the consequences of misclassifying a worker?

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