Old 07-25-2012, 09:50 AM
  #16  
Std Deviation
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Joined APC: May 2009
Position: Square root of the variance and average of the variation
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I've argued this point many times and have direct experience with it both as an incorrectly labelled "contractor CFI" and as a Part 61 flight school owner.

Someone dropped a dime on my employer when I was a newly minted CFI, the IRS came out, and determined that we were employees not contractors as listed.

When I owned my own school everyone was an employee. Previous posters are correct in that considering someone a contractor avoids the necessity of the Employer to pay worker's comp insurance, FUTA (federal unemployment tax) and their share of FICA (social security).

If an instructor showed up with his own airplane, had complete control over his/her schedule and syllabus, and simply used the office he could be designated as a contractor (even if the school provided students).
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