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Melbeez14
December 27, 2022
Question

Paying art instructors

  • December 27, 2022
  • 1 reply
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We have an event room where we hold different classes. I have people come in to teach art, knitting, cookie decorating, etc. They choose what they want to charge per person as a registration fee. I take care of collecting the registration payments and then pay the instructor one lump sum after the class. How do I categorize that lump sum payment made to the instructor for teaching the class? It's not contract labor because the customers are paying the instructor to take the class. The payment is just getting paid to us first (because we keep a portion of the sale) and then we pay the instructor.

1 reply

Rainflurry
Rainflurry
December 27, 2022

@Melbeez14 

 

It sure sounds like contract labor to me.  If the instructors are not employees, they are independent contractors and, as such, their pay is considered contract labor.  The customers aren't paying the instructor, they're paying the business which, in turn, is paying the instructors.  Therefore, IMO, this should be recorded as contract labor and you should issue the instructors a 1099 at year-end. 

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