When contracted by one or more school districts, the substitute teacher is considered self-employed. In this case, the employing districts will report earnings on a Form 1099 and will not withhold or submit income taxes on the contractor's behalf.

What qualifies as self-employed?

Self-employed people are those who own their own businesses and work for themselves. According to the IRS, you are self-employed if you act as a sole proprietor or independent contractor, or if you own an unincorporated business.

Are teachers employees or independent contractors?

Teachers are independent contractors only if (a) you do not control or direct how they teach their classes, (b) if teaching yoga is outside of your yoga business, and (c) the teacher has an independent business that is the same as they work they do for you.