This is an excerpt from my update book, Paying Workers in a Homeschool Organization
Avoid Controlling Your Independent Contractor
If your homeschool group would like to exert some control over teachers such as choosing curriculum or class content, requiring teachers to attend training sessions, or evaluating their performance, then you should pay them as employees.
One homeschool co-op was very particular about what method of teaching and content was taught to their students. They picked the curriculum and required training in their methods and their view of instruction. Then they evaluated the teachers on their teaching style, control of the classroom, and engagement with the students. They may be too controlling for their teachers to be accurately classified as independent contractors. They could increase the likelihood of properly treating the teachers as independent contractors by hiring teachers who are already trained in their methods and views of instruction, not require training (i.e., make it optional), and change their evaluation to focus on the completion of the tasks listed in their agreement and not focus on the teacher’s style of teaching. Or they could hire the teacher as an employee.
How Much Control is Too Much? The Plumber Test
How much you can control an independent contractor is a very difficult question to answer, because every situation is unique. Consider the model of a plumber when thinking about control and independent contractors. A plumber is an independent contractor who is hired for a specific, temporary job: to fix your plumbing. You usually have an informal, verbal agreement and may get an estimate of the cost before he begins work. He comes to your house at an agreed-upon time and brings his own tools. You may show him the problem and be in the room while he works, but you do not tell him how to do his job. You assume he knows what tools to use. He may return for additional work and will invoice you.
Now compare the plumber model to your relationship with your homeschool program’s independent contractors. Does it look like the plumber model? Then you are treating your independent contractors properly. If instead you exert more control over your workers than you do a plumber, then consider reclassifying them as employees.
If you need more information about your homeschool organization teachers, order Paying Workers in a Homeschool Organization.
Paying Workers in a Homeschool Organization covers paying workers as employees or independent contractors. There are also chapters on paying volunteers and board members. It includes sample forms, tips and advice to help you pay workers in accordance with the IRS laws to help your organization pay their workers correctly. Written specifically for homeschool organizations.
Carol Topp, CPA
HomeschoolCPA.com
