Hiring 109: Determining if Tutors will Be Employees or Independent Contractors

In deciding the right tutor for your essential needs, you should understand the legality of the situation. Tutors can come in two types of employment status, as official employees or independent contractors. When hiring tutors, you should determine which form suits your needs, especially in terms of how you will utilize their services. Make sure that you make the right decision as there are liabilities in place that can be quite tedious to deal with if you decide on your tutor’s job status wrongly.

Employees

Employees are more permanent, as employers have more tax dues and other financial dues that pertain to the service and other measures (usually insurance and medical care). Moreover, the employer has control over the work hours the employee can engage in, which makes the tutorial session more frequent when needed. Equipment is usually supplied by the employer, which includes tutorial supplies.

Independent Contractors

Independent contractors on the other hand are more flexible in work hours, and tax liabilities are not necessarily imposed. Furthermore, the tutor provides his or her materials for the tutorial session, and he or she has say on where to handle the tutoring session. The independent contractor can decline work and set his or her own hours because he or she is not liable to the one hiring him or her.

Establishing the Employment Status

Fundamentally, it depends on work permanence and necessity. If you need a tutor for a periodic basis and you would like to specify hours of employment, then hiring them as an employee will help you a lot. This, however, calls for more tax liability and you must provide materials for the tutoring service, usually. On the other hand of the spectrum, independent contractors provide their own materials and you can hire them when you specifically need them. Less tax liability make independent contractors an effective choice for clients on a strict budget.

Knowing what employment status your tutor is can help you determine the right functionality he or she has, which takes care of the legal situations and the liabilities he or she has to provide you tutoring services. If you wish for a more permanent availability of your tutor, then treat him or her as an employee, with the necessary benefits due. If you only want a tutor when needed, then treating him or her as an independent contractor will be the right course of action to take.

Disclaimer***Please check with a certified tax professional on your particular tax situation. This blog posting is to help educate you that there is a difference in how tutors can be hired for your private tutoring practice.