October 18, 2010 | Permalink | Comments (0)
October 18, 2010 | Permalink | Comments (0)
The City of Dana Point, California, is one
of the latest organizations to be investigated. According to another LERN
member, the IRS ruled that the recreation instructors are employees. The City
of Dana Point is appealing the decision.
The IRS has frequently ruled that teachers in continuing education and lifelong learning programs should be classified as employees, not independent contractors, reports Julie Coates, Vice President of Information Services at LERN.
“I have worked with several programs on this issue in the past,” she notes, “and the IRS ruled against all of them. They have just tended to rule against programs classifying instructors as contractors.”
“We need to caution our members to document their processes to be prepared in the event of an audit.”
The IRS has 20 criteria for being an
Independent Contractor. Legal experts
say programs should understand those criteria and be ready to defend why and
how their instructors and presenters meet those criteria.
Increased
cost to employee status|
“There is a high cost increase and
additional time in having instructors as employees instead of independent
contractors,” notes Greg Marsello of LERN.
The added costs in taxes and benefits make teacher pay more expensive.
Marsello also says that the increased
paperwork of employee status could also delay programs in lining up instructors
as human resource departments take time in processing the paperwork.
That can translate into fewer classes and
learners served as the average class size has declined over the past decade,
meaning that classes with only a few students may now have to be
cancelled. “This could reduce classes
and registrations in lifelong learning programs by as much as 20%,” estimates
William A. Draves, LERN President.
“This is a threat to lifelong learning, professional development and personal development of citizens in our society,” he notes.
While the percentage of citizens in the U.S. taking lifelong learning courses tripled from the 1970s to the 1990s, it slowed in the 1990s and stopped dead in its tracks around 2000. “We might even be slipping backward with the registration declines in the two recessions of the past decade,” suggests Draves.
Educating fewer of our population is not a good direction for our society, he notes.
LERN does not offer legal advice. But from information gathered from programs,
it looks like programs should:
1.Review status of any and all personnel;
2.Prepare a defense for any teachers, presenters or other staff classified as Independent Contractors;
3.Develop a back up plan if Independent Contractors have to be reclassified as employees.
As Julie Coates says, “It’s time to get your ducks in a row.”
April 01, 2010 | Permalink | Comments (1)
December 02, 2009 | Permalink | Comments (0)
LERN leaders pioneered a new era in continuing education and lifelong learning. First, they identified the new era. Second, many of them are the most successful practitioners and are doing very innovative cutting edge programming. Below, Mark Mrozinski of Palatine, IL, talks with Marquetta Finley of Tulsa at the LERN Leader Retreat.
December 02, 2009 | Permalink | Comments (0)