Why We Pay Yoga Teachers as W-2 Employees — And Why It Matters
Over the years, we’ve loved connecting with and supporting other studios especially local, independently owned studios navigating the very real challenges of running a sustainable wellness business.
One conversation that comes up often in the yoga world is:
Should teachers be paid as 1099 contractors or W-2 employees?
Every studio is different, and every teaching relationship is different. This also isn’t legal or tax advice. But we do think it’s an important conversation especially as more local brands & the teachers that support them, want clarity around taxes, stability, protections, and what actually makes sense long term.
What’s the Difference?
1099 = Independent Contractor
A 1099 contractor is considered self-employed and running their own independent business.
Usually that means they:
control their own pricing and schedule
market themselves directly to clients
manage their own taxes
work independently from the business hiring them
W-2 = Employee
A W-2 employee is considered part of the business itself.
In many yoga studios:
the studio sets the class schedule
the studio handles booking and payments
the studio markets the classes
the studio provides the space and equipment
the teacher is part of the studio’s main offerings
Why This Matters in Yoga
A yoga studio’s primary business is teaching yoga classes.
So when teachers are regularly teaching scheduled weekly classes inside a studio’s systems and under the studio’s brand, many labor standards including factors commonly considered in DC and other states lean toward employee classification.
Again, every situation is different. But these are important things for both teachers and studio owners to understand.
If You’re a Teacher, Here Are Some Things to Consider
You may function more like a W-2 employee if:
the studio sets your schedule
you teach recurring weekly classes
the studio controls pricing
you use the studio’s booking systems
the studio markets the classes
you are asked to follow studio procedures, teaching standards, or policies
students view you as part of the studio staff
you are teaching the studio’s main service offering
For example, a plumber hired to repair a sink at the studio is clearly providing a separate outside service. Plumbing is not the studio’s primary business. That type of relationship is very different from a teacher regularly teaching yoga classes on the schedule each week.
A true independent contractor setup may make more sense if:
you run your own business and brand
you market directly to your own clients
you control your own pricing and scheduling
you rent studio space independently
you teach occasional workshops or pop-ups
you work project-to-project instead of as ongoing staff
you provide services outside the studio’s core operations
One Thing Many People Don’t Realize
Paying teachers as W-2 employees costs studios significantly more.
Studios often take on:
employer payroll taxes
unemployment insurance
workers compensation insurance
payroll processing
additional administrative and compliance costs
In many cases, this adds roughly:
8–15% or more per teacher.
For some studios, though, it feels worth it.
Not because it’s the cheapest option, usually it’s the opposite, but because it can create more clarity, consistency, and support for teachers long term.
Why Many Teachers Prefer W-2
1099 can sound appealing at first because of flexibility or potential write-offs.
But many teachers are surprised by:
self-employment taxes
quarterly tax payments
lack of unemployment protection
inconsistent income documentation
needing to manage everything themselves
W-2 employment can make life simpler in a lot of ways:
taxes are withheld automatically
income is easier to document for apartments or loans
unemployment protections may apply
workers compensation coverage may exist
pay feels more stable and predictable
And honestly, many teachers simply like feeling part of a team instead of feeling like gig workers floating from place to place.
Can Teachers Still Have Independent Income?
Absolutely. Many teachers also:
teach private clients
lead retreats
run workshops
create online offerings
coach clients
sell trainings or products
That independent work can often exist alongside W-2 studio teaching. For many teachers, the sweet spot becomes stable studio income & independent side offerings.
The yoga industry is still figuring a lot of this out.
Teachers and studios are trying to build more sustainable systems. And many people are simply trying to do right by their communities while navigating a complicated industry. If you’re a teacher, it’s worth understanding how you’re classified, why, and what structure actually supports your life best.
And if you’re a studio owner and you’re unsure about your setup, it’s always worth checking your local labor laws and speaking with a qualified accountant or employment attorney in your state.
We also genuinely love coaching other independently owned studios and sharing what we’ve learned over the past 20 years. We’re all figuring this out together, and supporting local wellness communities matters to us deeply.