I am looking into working at the school my sons attend in lieu of paying their tuition – what are the ramifications, law/tax wise?
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I am looking into working at the school my sons attend in lieu of paying their tuition – what are the ramifications, law/tax wise?
Both of my sons are gifted, therefore they have special needs. The public schools could not meet their needs so my husband and I have put them in a school for gifted children. We are having a hard time affording this school but it is crucial they stay in this school because they would be at risk in public schools. In order to keep our sons in this private school, I am looking into working at the school in lieu of paying their tuition – a barter. The school thinks this is not legal. I think it is. Please advise. P.S.Would the school have to pay employment tax and would I have to pay income tax?
Asked on May 17, 2009 under Employment Labor Law, California
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
If you are receiving something of value -- your sons' tuition -- in return for your work, you are being paid, and that is income under the law. The school is right.
However, one way to make this work at least a little more easily would be if the school were willing to give you an employee discount on the tuition, and you in turn worked for less than the market rate for whatever work you did there, as long as the minimum wage law was not being broken. Of course, the school would have to agree with this, and you would have to do enough work to cover the tuition and all your taxes on the earnings. If this is an option, a CPA could figure out the numbers for you.
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