I am looking into working at the school my sons attend in lieu of paying their tuition – what are the ramifications, law/tax wise?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 12 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption