Are hired homeschool teachers household employees?

Hello Carol!

I graduated from college in May and am currently working on my masters degree in Elementary Education. A friend put me in contact with one of her family friends for a job opportunity as a homeschool teacher while I complete my degree. I do not work for a tutoring company nor do I teach any other children besides the ones in this family.

My employer said he would send me a 1099 at the end of the year and is not withholding any income taxes from my paychecks. I am wondering if I should be paid as a household employee.

I am wondering how much I should expect to put aside for taxes.
Emma

Hi Emma,

Congratulations on your recent graduation.

Other CPAs may disagree with me, but I do not think that teachers or tutors are household employees. The IRS has a list of occupations that qualify as household employees, that is workers who do household work: “housekeepers, maids, babysitters, gardeners, and others who work in or around a private residence as an employee.” Teachers and tutors are not mentioned in that list.

The IRS explains that “Repairmen, plumbers, contractors, and other business people who provide their services as independent contractors, are not your employees. Household workers are your employees if you can control not only the work they do but also how they do it.” (emphasis added)

So since your “employer” is treating you as an Independent Contractor, you are not a household employee.

It is debatable if being treated as an Independent Contractor is the correct classification for you. You may be the family’s employee (but not a household employee), if the family directs and controls your work. I cannot determine if you are correctly classified as an Independent Contractor from what you told me.


I usually recommend that self employed workers set aside 20%-30% of their pay to federal income taxes. You will pay both federal income and and self-employment tax, which is Social Security and Medicare taxes for self-employed people. Self-employment tax is 15.3% of your net earnings (i.e., your profit from being an Independent Contractor ). Then depending on your state, you may set aside a bit more for state income taxes; I estimate about 5% for state taxes.

So that’s a total of 30-35% of your pay for federal income tax, self-employment tax and state income tax.

Ouch!

I hope the family is paying you well!


I have a helpful ebook ?Taxes for Homeschool Business Owners that will be very  helpful to you as you prepare your taxes for 2020.

Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders

Using Zoom and Giving Refunds (podcast)

During the COVID-19 pandemic many homeschool programs used Zoom to stay connected with members. Three group leaders share how they used Zoom in their programs in this podcast episode.

In June 2020, Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate.

This podcast will air the webinar highlights in small chunks over six episodes.

Join this episode and the other episodes as Carol and three panelists discuss: 

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: Dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds and other topics.

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

The webinar is available to watch on YouTube or no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour and 38 minutes!

Featured Product

Books for Homeschool Leaders

HomeschoolCPA has several books to help leaders start and run a homeschool program

  • Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out
  • Money Management for Homeschool Organizations
  • The IRS and Your Homeschool Organization
  • Paying Workers in a Homeschool Organization
  • Homeschool Board Member Manual
  • Taxes for Homeschool Business Owners

All these books can be found at https://homeschoolcpa.com/bookstore/

Communicating COVID Plans and Organizing Classrooms(podcast)

Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders in June 2020. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate.

The webinar is available to watch on YouTube at no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour 38 minutes! This podcast will air the highlights in smaller chunks over six episodes.

Join this episode and the other five episodes as Carol and three panelists discuss: 

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: How are the panelists dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members and organize a classroom
  • Part 6: Using Zoom, offering refunds and other topics.

During the podcast Carol mentioned:

Featured Product

Mentoring from HomeschoolCPA

Carol Topp, CPA, the homeschool CPA, is offering a mentoring opportunity to train mentees to assist homeschool groups and their leaders.

A potential mentee should have:

  • Love and passion for homeschooling.
  • Education and experience in accounting. A BS or BA in business or accounting. CPA license (even if currently inactive) is strongly preferred.
  • Experience in nonprofit leadership such as being on a board of a church or nonprofit organization

For more information go to https://homeschoolcpa.com/mentoring/

Do you have a concern about lawsuits related to COVID-19? (podcast)

As a homeschool group leader you may have concerns that a lawsuit could be brought against your group is someone contracts COVID-19.

On June 1, 2020, Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate.

The webinar is available to watch on YouTube at no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour 38 minutes! This podcast will air the highlights in smaller chunks over five episodes.

Join this episode and the other five episodes as Carol and three panelists discuss: 

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: How are the panelists dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, insurance, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds, and other topics.

Insurance providers for homeschool groups https://homeschoolcpa.com/insurance-providers-for-homeschool-groups/

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

Featured Product

Phone Consultation with Carol Topp, CPA

Phone Consultation: A pre-arranged phone call to discuss your questions. My most popular service for homeschool leaders. It’s like having your own homeschool expert CPA on the phone!

Cost: $85/hour to nonprofit organizations. $100/hour to for-profit businesses. $60 minimum.

Contact HomeschoolCPA, Carol Topp, CPA, to arrange a telephone consultation.

Click Here to request more information!

Social Distancing in a Homeschool Group (podcast)

Three homeschool leaders discuss the challenges of social distancing during the COVID-19 pandemic.

 In June 2020, Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate. This podcast will air the highlights in small chunks over six episodes.

Join this episode and the other episodes as Carol and three panelists discuss: 

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: Dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds and other topics.

The webinar is available to watch on YouTube at no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour 38 minutes! This podcast will air the highlights in smaller chunks over six episodes.

During the podcast Carol mentioned:

Featured Product

Books for Homeschool Leaders

HomeschoolCPA has several books to help leaders start and run a homeschool program

  • Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out
  • Money Management for Homeschool Organizations
  • The IRS and Your Homeschool Organization
  • Paying Workers in a Homeschool Organization
  • Homeschool Board Member Manual
  • Taxes for Homeschool Business Owners

All these books can be found at https://homeschoolcpa.com/bookstore/

Tools for Planning an Uncertain Future for Homeschool Groups (podcast)

Tools for Planning an Uncertain Future

Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders in June 2020. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate.

The webinar is available to watch on YouTube at no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour 38 minutes! This podcast will air the highlights in smaller chunks over six episodes.

Join this podcast episode on using a decision matrix and the other five episodes as Carol and three panelists discuss:

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: How are the panelists dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds and other topics.

Download the Decision Matrix spreadsheet at HomeschoolCPA.com/DecisionMatrix

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

Featured Product

Webinars for Homeschool Leaders

HomeschoolCPA offers several recorded webinars for homeschool leaders. Most are 60-90 minutes and come with handouts and other resources. Prices range from free to $25 each.

Create a Nonprofit for Your Homeschool Community The first steps in starting a nonprofit: a board, bylaws and nonprofit incorporation

501c3 Application for Homeschool Nonprofit How to apply for 501c3 tax exempt status

IRS and State Filings What you need to do after 501c3 status

Tax Preparation for Homeschool Businesses How to prepare your tax return for homeschool business owners

Financial Reports How to present financial reports that are clear and easy to understand to board members  FREE

ABCs of an Academic Homeschool Program How to start an academic, classical homeschool program

Planning an Uncertain Future for Homeschool Groups (podcast)

On June 1, 2020, Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain if they could operate.

The webinar is available to watch on YouTube at no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour 38 minutes! This podcast will air the highlights in smaller chunks over six episodes.

Join this episode and the next five episodes as Carol and three panelists discuss:

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: How are the panelists dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds and other topics.

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

Featured Product

Board Manual

The  Board Manual for homeschool organizations will be very helpful to organize your board and run your homeschool organization successfully!

Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder. It has:

  • A list of important documents to keep in your binder
  • Section dividers so you can organize the important papers
  • Tools to help you run your meetings smoothly including
  • A sample agenda that you can use over and over again
  • A calendar of board meetings

But this is more than just a few cover sheets for your binder. It is also a 55-page board training manual with helpful articles on:

  • Suggested Board Meeting Topic List
  • Board Duties
  • Job Descriptions for Board of Directors
  • What Belongs in the Bylaws?
  • Compensation and Benefits for Board Members
  • Best Financial Practices Checklist
  • How to Read and Understand Financial Statements
  • Developing a Child Protection Policy

Click Here to request more information!

What’s the Difference Between Pod Schools and Homeschools?

Have you heard of pod schools? They are groups of parents who gather together to educate their children outside of their public school system. They became very popular as in-person schools closed due to the COVID-19 pandemic in the fall of 2020.

In the previous episode (#195) of the HomeschoolCPA podcast, host Carol Topp, the Homeschool CPA, discussed with guest Julie Schiffman two distinct differences between pod schools and homeschools

  • Who does the educating, the pod teacher or the parent?
  • Where does the education take place: In the pod space (a home or rented facility) or everywhere?

In today’s episode, Julie explains two more important differences between “pandemic pods” and homeschooling.

  • How is the curriculum chosen and delivered: Set by the school or chosen by the parent and customizable for the child’s needs?
  • Why? What is the motivation to educate this way: a pandemic or something deeper?

Julie Schiffman is owner of TenToad.com a website dedicated to helping parents transition from school to homeschooling though Virtual Homeschool Fairs

During the podcast Carol mentioned Julie’s Learning Pods Checklist and Considerations

Featured Product

Phone Consultation with Carol Topp, CPA

Phone Consultation: A pre-arranged phone call to discuss your questions about starting and running a homeschool organization, co-op or tutorial program. This is my most popular service for homeschool leaders. It’s like having your own homeschool expert CPA on the phone!

Cost: $85/hour to nonprofit organizations.  $100/hour to for-profit businesses.

Contact HomeschoolCPA, Carol Topp, CPA, to arrange a telephone consultation.

Click Here to request more information!

Pandemic Podschooling: Is It Homeschooling?

Have you heard of “pandemic pods”? They are groups of parents who gather together to teach or hire a teacher to educate 3-6 students outside of their public school system. They became very popular as in-person schools closed due to the COVID-19 pandemic in the fall of 2020.

In this episode of the HomeschoolCPA podcast, host Carol Topp, the Homeschool CPA discusses with guest Julie Schiffman four distinct differences between pod schools and homeschools.

  • Who does the educating, the pod teacher or the parent?
  • Where does the education take place: In the pod space (a home or rented facility) or everywhere?
  • How is the curriculum chosen and delivered: Set by the school or chosen by the parent and customizable for the child’s needs?
  • Why? What is the motivation to educate this way: a pandemic or something deeper?

Julie Schiffman is owner of TenToad.com a website dedicated to helping parents transition from school to homeschooling though Virtual Homeschool Fairs

During the podcast Carol mentioned Julie’s Learning Pods Checklist and Considerations

Featured Product

Homeschool Co-ops:
How to Start Them, Run Them and not Burn Out

Have you ever thought about starting a homeschool co-op? Are you afraid it will be too much work? Do you think you’ll have to do it all by yourself? Starting a homeschool co-op can be easy! This book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out will give you ideas, inspiration, tips, wisdom and the tools you need to start a homeschool co-op, run it and not burn out!

Click Here to request more information!

Do you have a passion to help homeschool leaders?

 

Do you have a passion to help homeschool leaders?

Does a consulting business helping homeschool leaders sound appealing to you?

I have enjoyed being “the HomeschoolCPA” and advising homeschool leaders for 20 years and I’m ready to start slowly handing over my consulting business to another person(s) via a mentoring program.

Potential mentees should have:

  • an interest in homeschooling,
  • education in accounting (CPA preferred) and
  • experience in nonprofit leadership

Homeschooling is a growing niche that could serve as a great sideline business or a perfect opportunity for a parent who want to homeschool and keep using his or her accounting education and experience.

If this sounds appealing to you, visit HomeschoolCPA.com/Mentoring for details.

Carol Topp, CPA

HomeschoolCPA.com

Helping Homeschool Leaders