It seems like an ideal deal: teachers who work as independent contractors gain flexibility through their schedules and improve their cash flow. Studio owners add expertise and variety to schedules, as interest and registration are justified by stopping ICs. Homeowners also significantly reduce their costs, since they don`t pay for Social Security, Medicare, federal or state payroll taxes, unemployment insurance, workers` compensation, health insurance, or for sick leave and sick leave, as they would for employees. That`s a good thing, isn`t it? Not exactly, according to the IRS, state tax authorities, workers` committees and the Ministry of Labor. Like most things that sound too good to be true, using ICs isn`t always what it seems. Indeed, the often incorrect use of ICs is a direct violation of federal and state tax and labor laws. If you decide to add a full-time employee to your studio or opt for a CI, keep in mind that independent contractors are treated differently from employees from a tax perspective. With ICs, employers pay less tax, an aspect that can seem very attractive to a small entrepreneur. Be aware, however, that if you incorrectly categorize an employee as an independent contractor, you must pay high fees and reimburse them for salaries that should have been paid in accordance with the Fair Labor Standards Act. They must also reimburse the government for all taxes owed at the federal and regional level, as well as Social Security, Medicare, and unemployment. However, when teachers are visiting – teaching workshops or participating in a short-term project and their main attraction is their expertise – IC status is acceptable.
In such situations of guest artists, the content of the class would be determined independently of the studio, and the reputation of that guest artist would be the main attraction of the class. However, independence would be difficult to defend with a substitute professor who follows the curriculum guidelines established by the studio. Who are you? Before following the IC route, contact your tax advisors to inquire about the requirements of your country and how best to structure these relationships. Since agencies may not share these definitions, owners may be required to treat the same worker as a CIC for one government authority and as an employee for another authority to comply with the rules. For example, if the studio withholds federal taxes as if the teacher were an employee, but no public taxes, the teacher should be sure to pay the estimated taxes owed to the state. For the teacher, the primary responsibility is to ensure that taxes are paid on time. The administrative structure of a studio should be as individual as a fingerprint. While collaboration with a franchised brand offers a turnkey solution with an integrated business model, the independent owner of the boutique studio rewrites its own management framework. There`s no one-size-fits-all approach and fortunately, you don`t need an MBA to write a business plan or determine how you`re going to manage your team. Start by understanding your personal leadership style and creating a system that complements you.
Originally from Norwalk, Ct, Steve excelled in athletics and football. He visited the University of Tennessee at Martin on a sports scholarship. He decided to change and make a career in the world of dance, first studied with Mikki Williams, then in New York with Charles Kelley and Frank Hatchett. He has performed in a series of theatrical productions such as Damn Yankees, Guys and Dolls and Mame in New York City and throughout the country, as well as in industrial and television shows. He was commissioned to play the role of principal dancer in the Valerie Peters Special, a television show filmed in Tampa, Florida.