This article from Forbes discusses independent contractors and employees.
The Department of Labor is considering requiring businesses (and that would include nonprofits) to give every IC a “Right to Know” document explaining why they are not classified as employees.
It would require giving each independent contractor a kind of written Miranda warning notifying the independent contractor about:
- The federal tax obligations of an independent contractor;
- The labor and employment law protections that do not apply to independent contractors; and
- The right each independent contractor has to ask the IRS to determine whether he or she is an employee or independent contractor.
These might affect you if your homeschool organization hires independent contractors. A lot of homeschool co-ops hire teachers as independent contractors.
I’ll keep you posted if these regulations come to pass.
Carol Topp, CPA