CFI - Employee or contractor?
02-24-2016, 04:20 PM
#1
Banned
Thread Starter
Joined APC: Feb 2016
Posts: 377
CFI - Employee or contractor?
Should CFI's be employees or contractors? 
02-24-2016, 04:34 PM
#2
Gets Weekends Off
Joined APC: Oct 2008
Position: JAFO- First Observer
Posts: 997
Which side of the equation are you asking from? Employee side or Employer side? Lots of pro's and con's to each...
CFI as Direct Employee- 1099 issued, withholding taxes from paycheck required, paid benefits? Liability insurance included when instructing in company aircraft? How much does the "house" make vs how much the CFI actually gets paid (normally hourly)...
CFI as a contract employee- CFI responsible for "self employment taxes" (at a much higher tax rate).. No benefits... CFI responsible for carrying professional liability insurance (or at least renters insurance if permitted to instruct in said aircraft)... CFI may be able to make more $$ per hour, but that increase could easily be wiped out in self-employment taxes...
One accident or incident without insurance, you will wish you had it!
Honestly, you should get with an experienced aviation attorney and CPA if you are considering "free-lance" CFI and ask alot of questions.
CFI as Direct Employee- 1099 issued, withholding taxes from paycheck required, paid benefits? Liability insurance included when instructing in company aircraft? How much does the "house" make vs how much the CFI actually gets paid (normally hourly)...
CFI as a contract employee- CFI responsible for "self employment taxes" (at a much higher tax rate).. No benefits... CFI responsible for carrying professional liability insurance (or at least renters insurance if permitted to instruct in said aircraft)... CFI may be able to make more $$ per hour, but that increase could easily be wiped out in self-employment taxes...
One accident or incident without insurance, you will wish you had it!
Honestly, you should get with an experienced aviation attorney and CPA if you are considering "free-lance" CFI and ask alot of questions.
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