Are your tutors employees or subcontractors?

Are your tutors employees or subcontractors?

Steps to determine if your tutors are employees or subcontractors The IRS test often is termed the “right-to-control test” because each factor is designed to evaluate who controls how work is performed. Under IRS rules and common-law doctrine, independent contractors control the manner and means by which contracted services, products, or results are achieved. The more control a company exercises over how, when, where, and by whom work is performed, the more likely the workers are employees, not independent contractors.  There are 20 criteria the IRS uses to make a determination. A worker does not have to meet all 20 criteria to qualify as an employee or independent contractor, and no single factor is decisive in determining a worker's status. The individual circumstances of each case determine the weight IRS assigns different factors. NOTE: Employers uncertain about how to classify a worker can request an IRS determination by filing Form SS-8, “Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” However, some tax specialists caution that IRS usually classifies workers as employees whenever their status is not clear-cut. In addition, employers that request an IRS determination lose certain protections against liability for misclassification. The common law test  The common law test: IRS examiners use the 20-factor common law test to measure how much control you have over the worker. These factors are reflected on IRS Form SS-8, (this form can be downloaded at www.irs.gov)“Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” You can fill out the SS-8, including the facts of your relationship with the worker, and submit it to the IRS to get a determination of whether the worker is your employee or not. The reasonable basis test  The reasonable basis test is considered a “safe harbor.” That is, if you can show you had a reasonable basis for treating a worker as an independent contractor, the IRS is prohibited from reclassifying the worker as your employee either prospectively or retroactively. You have a reasonable basis for treating a worker as an independent if one or more of the following conditions exist: -A court ruling in favor of treating workers in similar circumstances as non-employees; -A ruling by the IRS (usually a Revenue Ruling) stating that similar workers are not employees subject to employment taxes; -An IRS Technical Advice Memorandum or Private Letter Ruling issued to your company, indicating that the particular worker isn't an employee; -A past IRS payroll audit that didn't find workers in similar positions at your company to be employees; or -A longstanding, widely recognized practice in your industry of treating similar workers as independent contractors. NOTE: The Treasury Inspector General for Tax Administration has recommended that IRS pursue legislative proposals that would mandate withholding of income taxes on payments made to independent contractors and require monthly estimated tax payments. TIGTA made these recommendations in order to curtail estimated tax payment To learn more visit www.testprepprofessionals.com

Managing Tutor No-Shows

Emergency tutor and teacher recruitment in as little as 48 hours (seriously).  Visit testprepprofessionals.com for information Email not displaying correctly? View it in your browser.

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Managing Tutor No Shows...in the moment Step 1:  Call the client in advance of an impending missed appointment whenever possible (Good organizations are unafraid to admit mistakes and eager to provide resolution). Step 2:  Assuming that the no-show is unexpected, remember that the tutor's well being and the client's concerns are not mutually exclusive.  Support your tutor and attempt contact.  At the same time, validate the client's concerns by letting them know you will immediately work to reach a resolution.  A phrase like"this is not typical for David nor for our company, let me do some quick research and get back to you in XX minutes."   This practice will afford time to both check on the tutor and to consider client alternatives. Step 3:  Attempt to reach the original tutor to determine if he is alright.  At this point it would be wise to call back up tutors as well and set the expectation for meeting location, duration and subject matter.  When possible, defer to a Icon Tutor. Step 4:  Work to create a make up meeting with your absolute best tutor (Icon Tutor) but make it clear that this is only because of the unusual circumstance and is unlikely to be a regular option.  Ideally,  this meeting occurs at the same time as the original appointment.  If it does not, work to redirect the client to a make up session with said Icon Tutor.   The bottom line here is that you want to protect your brand and your reputation by turning an obstacle into an opportunity. One has more control when one schedules a known quantity.    Weaker organizations will find anyone they can to fill the original session which often backfires.   Step 5:   Follow up with the client before and after the eventual meeting.  *Note*  this is a good practice to employ for all regular meeting times as well--not just a crisis.  The key to the relationship between a tutoring organization and a client is transparency.   Step 6:  If the client is intransigent, be prepared to find a reasonable middle ground for what we call a make good.  This is often a request for some sort of refund.  Ultimately, the key here is to let the client talk so that one can uncover the true need they are expressing.  For example,  a client may ask for a refund because they do not know or understand their options.  Things like extra time, free-work shops, even work-books can be suggested and are typically more relevant to the root concern of the client. Because word of mouth is ultimately the best advertising, protecting your brand equity cannot be overstated; if a refund is demanded, be prepared to part with the money.  That having been said, if you stand behind your service consistently during good and bad situations, you should be able to help redirect the client to a more relevant and agreeable make good more often than not. *Email to learn more about  Managing No - Shows .    We'll cover " Minimizing and avoiding,"  " Human resource follow-up," and "Tools and tactics to strengthen your culture."

Specializing in high quality short timeline Tutor recruiting--in as little as 48 hours (seriously).  Call 617-285-4036 or email info@testprepprofessionals.com  Email not displaying correctly? View it in your browser.

Cross-selling and its impact on tutoring profitability

Key terms Cross-selling:  an extra product or service offered to an existing client.  Also known as "Add-ons" in tutor parlance. Profit Margin:   Revenue - Expenses / Revenue Consultative selling:  the practice of recommending products or services to meet a client's true goals.   Cross-selling and its impact on profitability Tutoring firms can benefit in a predictable and measurable way by cross-selling products to current clients.  One of the nice things about cross-selling is that it implies an high level of engagement between tutor and client.  Most folks reading this now have probably engaged in add-ons (or cross selling)  just to provide excellent client service without actually understanding the inherent benefit to their business.  As the Test Prep & Tutoring world becomes more commoditized  this client-centric approach allows smaller firms to differentiate from larger concerns.   Said differently, Tutoring is generally customized for a particular purpose to suit a particular need.  The closer we get to understanding and addressing those needs, the more unique and individualized our offerings.  This tends to make cross-selling both credible and consultative. How then does one leverage cross-selling to positively impact the business?    It comes down to discipline and consistency.  While some parents or students will ask directly for help in a subject outside of their primary focus  (  think about how often you have heard "my son needs to prepare for the SAT---oh--and do you tutor Physics as well?), other parents may not be as well informed nor as strategic.     Ask yourself "has every client from the past asked for additional hours or services?"  Most often the answer is no which simply means there is an opportunity for you  to start the dialog.  Now ask yourself "of the clients that have asked for additional hours or services, have the outcomes benefited my top line?"  Most often the answer is a resoundingyes.  Assuming this is true, the simple answer is to offer everyone of your clients something more; something valuable...and something directly relates to the client's need.  This is where discipline and consistency come in:  in order to create the most value from the practice of cross-selling, one should approach every client at some point with the idea of adding on hours, services, or both. But some folks feel uncomfortable suggesting additional products or services because it feels less like teaching and more like sales.  The reality is, however, that parents or tutoring clients themselves often need and want more.  The reasons may vary from wanting a competitive edge on a test, to needing to have a better understanding of an admissions time line,  to needing to improve a GPA.   If one can shift frames from "salesperson" to "consultant," a liberating and impactful change can and often does follow.    Profitability and providing excellent tutoring services are not mutually exclusive. Okay, so assuming you have shifted frames from a sales mentality to a learning consultant, you simply need to surface opportunities to help, or to recognize when someone needs help--and then, well,  help them.  But how do you know what and when to broach the subject?    Although this is a complex question I have two fairly good suggestions: 1)   Start by truly understanding your client's needs by spending a good deal of time on the front end of the relationship.   If someone is signing up for SAT tutoring you can think "great, I'll schedule a great tutor and we'll set up sessions for Tuesday and Saturdays,"  or you can seek to learn a bit more about the student's goals, target schools, high school transcript, and   GPA profile.  Surfacing some additional information generally helps one uncover the true need behind the initial request.  Once these needs are understood, recommendations can be made. 2)    Focus on cross-selling  right now.  This point in the year is typically the high point for all manner of high school standardized tests (ACT, SAT, AP) including subject tests.  Moreover, the timing to have a final impact on one's high school GPA is coincidental as well.    Even if you have not spent a great deal of time on the front end, the college admissions time line is working in your favor. The Business Implications of Cross Selling Cross-selling is profitable, primarily because one does not need to spend additional $ to market to a lead base.  In this regard, the ROI is much higher than the ROI from a new client.  Additionally, the back end processes are less difficult to navigate because a rapport has been built with the client, tutors have been delivering service, the location has been determined etc. Lastly, although the impact to revenue may be small at times, for example when someone adds one or two incremental hours of prep, the impact to profit margin is extremely high.  Why?  Essentially, with cross-selling the primary and sometimes the only expense is labor which means more of the service revenue travels directly to the bottom line. If you haven't begun cross-selling, now is the perfect time.  If you are a veteran of the tutoring field, challenge yourself to surface these opportunities with every client.   You won't be disappointed. To learn more about cross-selling or to learn what additional services are prime opportunities to cross sell contact Kevin Organisciak at 617-285-4036 or email info@testprepprofessionals.com