I need to make sure I do the correct paper work. I am starting a studio and would like to know what is the best route for fitness instructors? Employee? or Contractor? It seems it might be employee but if they get paid $30 for a class then would they get all there tax taken away from that? My state is Texas but they are very vague about the requirments here. Any advice would be great!
My first suggestion is to meet with your tax representative and ask him or her.
There are advantages to both, it depends on how you plan on running your business.
Yes as an employee their taxes are withheld from there paychecks by you, you are their boss and can implement rules and guidelines and you would also then have to provide all necessary equipment for their use.
As an independent contractor you cannot advise them or regulate what they do. They must provide all of their own equipment and supplies.