When it comes to the question of whether board members are employees or independent contractors, there is no one-size-fits-all answer. The classification of board members varies from organization to organization and depends on a number of factors.
In general, board members are considered volunteers and are not considered employees. This is because they do not receive regular wages or benefits from the organization they serve. They are also not subject to payroll taxes or entitled to workers` compensation.
However, board members can still receive compensation in the form of expense reimbursements, honorariums, or other payments. If a board member receives compensation that is significant enough to be considered income, they may be classified as an independent contractor instead of a volunteer.
The classification of board members also depends on the level of control they have over the organization. If a board member is actively involved in the day-to-day operations of the organization, they may be considered an employee. However, if they are only involved in high-level decision-making and strategic planning, they are more likely to be considered independent contractors.
It is important for organizations to properly classify board members to avoid legal issues and potential liability. The classification of board members can affect their tax liability, eligibility for benefits, and their ability to sue the organization for discrimination.
In summary, board members are generally considered volunteers rather than employees. However, if they receive significant compensation or are heavily involved in the operations of the organization, they may be classified as independent contractors or employees. It is essential for organizations to properly classify board members to avoid legal issues and protect themselves from potential liability.