Quote:
Originally Posted by point432
Always do your research before going to work for a flight school. I always found it easier to be an employee than an independent contractor. Both have their benefits. See how many people are walking through the door, or how often do the instructors fly and planes go out. Nothing like sitting all day behind a counter. And how many schools are at the airport or how many instructors work at the school. Just more people to split the pie.
I will agree, where you got your CFI or did a majority of your training will paint the best picture for you. You know the aircraft, staff, and management...and maintainence. If you have your MEI, will the school let you teach in it with "X" amount of multi if they have a twin.
Just my two cents. Anyone else care to add to that list? Either way you will learn so much as a CFI. Good Luck!
The IRS has ruled that it is ILLEGAL for an established flight school to consider a flight instructor an independent contractor and provide them with a 1099 at the end of the year. The IRS has a list of questions on their website that determines whether you are an employee or contractor.
Short list: if the school is providing the airplane, the student, and the office you're an employee and they have to tax you and take out FICA.
I owned a 91 school in Michigan in 1996 for a number of years and every instructor was an employee. However, when I started working as a CFI in 1991 I received a 1099 as an independent contractor. One of the other instructors turned in the school since he didn't like the tax bill at the end of the year. The IRS gave them a warning to be followed by a fine. A lot of schools label CFIs contractors to avoid taxes and workers comp insurance; the IRS either never finds out or is too short-staffed to deal with the problem. Unlike an electrician/plumber, etc. that provides their own tools and works by the job, a CFI is "scheduled" by the school. Be weary of a school that says you're a contractor.
From the IRS website:
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
Here's the form to determine contractor or employee. When you start answering the questions you'll see the CFI is an employee.
http://www.irs.gov/pub/irs-pdf/fss8.pdf