Exempt EE as Exercise Instructor
Ok, here is a good one...
We have an exempt EE that would like to provide weekly fitness classes (i.e. yoga) to our employees after work hours. The previous practice was the company provides the advertisement at no charge (via email), provides the facilities at no charge, and notes that the participating employees directly provide the instructor a fee of $5 per class. The $ goes directly to the instructor and no $ is collected or paid by the company. None of these transactions go through payroll. The company advises the instructor that it [8-|]is their responsibility to file a 1099. The exempt EE that is providing this service is doing this out of their own free-will and it has no associated with their current role. Any input is appreciated. Thanks!