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Because nearly all online English teachers are classified as Independent Contractors and therefor get no taxes taken out of our paychecks as employees would, we're in charge of making payments to the IRS ourselves, usually quarterly.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
In order to be legally classified as an independent contractor, a yoga instructor must: Be free from control and direction of the fitness studio as to how they perform their services. Perform their work outside of the fitness studio's usual business.
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. If you are an independent contractor, then you are self-employed.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
Are adjunct professors independent contractors (1099 workers) or W2 employees? Adjuncts are typically contracted to teach on a course-by-course basis but are considered W2 employees for tax purposes.
A worker, personal trainer, or fitness instructor can be classified as an independent contractor if: (a) the worker is free from control and direction in the performance of services; and. (b) the worker is performing work outside the usual course of the business of the hiring company; and.
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.
Remember that an independent contractor is considered to be self-employed, so in effect, you are running your own one-person business. Any income that you earn as an independent contractor must be reported on Schedule C. You'll then pay income taxes on the total profit.