CFI Independent Contractor

[BYUFlyr]

I am currently working as an independent contractor flight instructor because it is the only time building opportunity I have been offered in six months of sitting on the ground. Today I spoke with the owner of a flight school who is an acquaintance of mine and when he heard I was doing conract work as a CFI he brought some things to my attention that caused me to reconsider the desperate path I'm taking.

What are the pros and cons of being an independent contractor in the instructing business? What things should I be aware of?

Thanks for your input

 

[Capn Lucky]

The most important thing to do is be insured. Since you are independent, focus on doing instrument instruction as the student will be PIC and there is more money in it. I was an independent for a while and it worked out well for me.

 

[midlifeflyer]

What are the pros and cons of being an independent contractor in the instructing business? What things should I be aware of?

Generally the pros and cons are those that apply to almost any situation in which you are faced with the choice of being a contractor or an employee. Just some of them:

Employee: W-2 reporting by the company, generally easier tax reporting (for you), health benefits (maybe), unemployment insurance benefits, liability insurance paid for by the employer (maybe), greater employer control, your business belongs to your employer.

Contractor: 1099 reporting by the company, Schedule C reporting, more deducibility of business expenses, greater record keeping requirements, larger social security/medicate chunk, more independence in business development, need for your own liability insurance

 

[DC9stick]

Does the place you work provide you with students?

Are you required to be on premisis certain days or times?

Does your student pay you directly or pay the business?


If you answered yes to any of the above you are an EMPLOYEE, NOT acontractor and the employer is is violation of IRS rules.

Most employers do the contractor 1099 thing only to avoid payroll taxes and shift that burden to the employee.

 

[Weasil]

also you need to check any local airport ordnances. Often the local airport authority will have a standards of practice as to who can instruct on their airport and what kind of insurance coverage you have to maintain.

 

[avbug]

Some very good points all around. Weasil's last comments regard through the fence operations, and almost all airports have ordinancs or policies regarding through the fence operations. These are often not very visible ordinances, but they can still bite you. Where these usually become a problem is when other instructors feel that you're taking business from them, and they report you or prosecute.

Finding work as an independent instructor is very difficult any more; few places will permit it, and many insurance policies won't touch it. Most still want a cut for use of their facilities, which as others noted, puts you into a grey area regarding who is really contracting and who is under an agreement of employment.

One of my jobs involves contract flying; I fly for a government agency in a civillian aircraft, and am paid by the civiliian operator, not the government. I am not an employee of that operator, however. I am recognized as an independent contractor. The operator is hired to provide the services, and I am subcontracted to fly the airplane. Taxes are not taken out of my pay, and no workers comp or other arrangements are made for me. It's all my responsibility.

The same may be applied to independ instructing, even if the money is paid to the flying club. Merely because the student doesn't pay you directly, doesn't make you an employee of the flying club or FBO.

The biggest concern for you should be your own liability, and coverage in the event of a mishap. If you're independently instructing, then you're independently liable and responsible for both your actions, those of the student, and the aircraft. Conversely, if you're in the employ of a club or FBO, then the FBO absorbs a great deal of that liability. You're still the first line of responsibility in your duty to provide proper instruction and a safe environment, but most of the time the FBO has the bigger pockets and you are therefore somewhat shielded.

All that goes away if you're instructing independently. The same for future liability. When yours is the last signature in the student's book and two years later the student balls the airplane up, they'll come back looking for you. I've experienced that first hand, nothing I did personally, but I had made a short check-out flight with a student (from the same airport where you're flying, incidentally), and years later the student crashed sans current flight review and current medical. Mine was the last signature in his book, and the masses came knocking for their cut.

I won out...but I hadn't been acting independently at the time, or entirely so. Had I been, I'd have had a heck of a losing fight.

If your'e instructing indendently, then providing the insurance you'll need may be a lot more expensive than becoming a rider on someone else's policy. In other words, you'll be a lot more insurable and protected if you're part of a group of pilots seeking insurance...than just you.

What counsel did your friend give you rearding independent instruction?

I'm a little concerned, personally, by your reference to time building. I hate that expression, passionately. If you want to build time, then falsify it. Write it in your logbook and go get hired somewhere. Lie. Do it fraudulently. That's all time building is worth.

If instead you're going to build flight experience by learning, aiding the student, and devouring your work, you'll find it's invalueable time in your logbook and in your memory. Timebuilding is cheating yourself and cheating your student or employer. Experience building is another matter completely. Build experience, not time.

You may fly the same hour and it may be either an hour of time to be logged, or a wealth of experience. The difference is up to you. Build experience.

 

[urflyingme?!]

av,
I like your view on building flight experience.

 

[PC12Cowboy]

<hands BYUflyer a shaffer P51 pen.....write it in the book you flew a P51...lmao
Avbug is right...dont come to instruction of student to build time...I've already encountered enough of those fools...and had to Fix their students basic flight skills, just to get past the checkride.
you always could go the PFT route....but then you'll be veiwed badly there to....

 

[snowman]

THE 1ST PROBLEM IS THAT YOU WENT/GO TO BYFREAKINU. Holy Fetch, got down sat on a bench and some of it itches!!!!!! How weak is BYFRICKINU! UGH...
Can't type BP is rising....


GO UTES!

 

[BYUFlyr]

I'm a little concerned, personally, by your reference to time building. I hate that expression, passionately. If you want to build time, then falsify it. Write it in your logbook and go get hired somewhere. Lie. Do it fraudulently. That's all time building is worth.

If instead you're going to build flight experience by learning, aiding the student, and devouring your work, you'll find it's invalueable time in your logbook and in your memory. Timebuilding is cheating yourself and cheating your student or employer. Experience building is another matter completely. Build experience, not time.

You may fly the same hour and it may be either an hour of time to be logged, or a wealth of experience. The difference is up to you. Build experience.

Thank you for the valuable information.

I understand what you mean about the "building time" language I used in reference to instructing. It was a poor choice of words on my part, I am not that type of instructor, and I am fortunate to never have experienced instruction from "time builders". I had great examples and good advice from my own instructors warning me against that type of attitude; it was simply a poor choice of words. I am instructing because I like training; I like sharing the gift of flight with others. I'm a Marine and currently in a commissioning program with a guaranteed flight slot (slated for flight school in 2007); therefore, I do not need to "build time", but the experience I've gained and will continue to gain will be invaluable to me in Pensacola. Again, I enjoy training wether it's combat training with my junior Marines or teaching others what makes an airplane fly.

Thanks again for the advice; my frined counseled me against independent contracting because he said it is "illegal" and very risky. I think I should talk with the owner of the flight school and get further clarification on wether or not I am meeting the legal requirements of an independent contractor.

I apologize for my choice of words, hope I didn't offend anyone.