Should I be considered self-employed since I work at the YMCA?

Should I be considered self-employed since I work at the YMCA?

by William R. Lazor, CPA | Oct 13, 2017

I work at the YMCA as a yoga teacher. The Y takes out taxes, but I was wondering if I should be considered a self-employed contractor?

It depends on the extent of your other yoga-teaching income.

From a personal perspective, you should be aware that if self-employed, you would be responsible for both halves of your Social Security taxes. Also, as an employee, you are probably covered by the liability insurance policy of the YMCA.
The IRS provides guidance on how companies classify employees and contractors and fines are steep if businesses misclassify an employee. This is outlined in this business-to-business blog, along with a brief explanation of the risks and benefits of being an employee.
You should consult a CPA to talk about the various requirements, risks, and benefits of considering yourself a self-employed person.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: William R. Lazor, CPA, is a partner/shareholder with Kronick Kalada Berdy & Company PC in Kingston, Pa.
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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