93: Employees or Contractors? What Music School Owners Need to Know

On this episode of the Rock School Proprietor Podcast, John Kozicki (Michigan Rock School and RockSchoolProprietor.com) and Mandy York (Music Time of Milford) tackle whether music instructors should be classified as employees or independent contractors and why that decision is important for every studio. They break down the criteria the IRS uses to assess classification by behavioral control, financial control, and the relationship of the parties. John and Mandy also trace how our industry evolved from music-store lessons to dedicated lesson studios, and how the instructor classification may just be slower in that evolution. They also discuss practical considerations like contracts, insurance, background checks, and how employment status shapes studio culture. Topics discussed: Evolution of music studio business models from retail to education IRS criteria for classifying employees vs contractors Legal and tax considerations for music instructors The importance of consulting professionals for business setup Whether you’re starting a studio or re-evaluating your setup, this episode offers a clear framework to help you rethink instructor roles and make informed decisions.   Interested in the Building a Band Program webinar? We're planning a free live webinar to accompany the Building a Band Program series of episoders on Friday, July 24, 2026. John will go deeper on the topics and answer your questions directly. If you're interested, send an email to [email protected] with the subject line Webinar and we will be in touch with details. -------------------------------------- Your ratings and reviews on Apple Podcast and Spotify are always appreciated! Join our private Facebook group, "The Modern Music School," a community for like-minded professionals to connect and share insights. Looking for a simple and effective guitar curriculum that includes FREE instructor training and support? Consider John's book, Complete Guitar Strumming.