Private Lesson Payments

[Isk8NYC]

At the other rinks I've worked, private lesson fees were paid to the instructor directly and the instructor paid his/her commission on a weekly or monthly basis to the rink.

The rink I'm teaching at now requires that private lesson payments be made through the cashier. The commission is deducted and the remainder is paid to the instructor by the rink.

I can see some real benefits: I can't tell you how many times I've had people hand me a $100 bill for a $35 lesson. Making change is a pain. Or run to the cash machine, leaving their child in my charge. This system is nice because if they forgot their checkbook or are short on cash, they can still pay by credit card at the desk and all I need is a desk receipt.

I always declare all my skating income, so I'm not worried about sheltering monies from taxes. Last year was my best year for skating lessons, but this year is going to be tight since I'm starting from scratch (again) with no private students. I'm already running a deficit. sigh

Are there any disadvantages to this through-the-rink system that I should know about?
How do others track these monies and ensure that they aren't shortchanged?
Any tax implications to be concerned about?

[dbny]

I have taught at one rink with that system. The only drawback that I experienced was that the rink paid me by check the following week. I like having all that cash on me; it has greatly reduced my credit card bills, and I don't have to go to the ATM so often.

[SynchroSk8r114]

At my rink we are paid individually by our students and are responsible for paying commission (hourly or monthly - coach's choice) to the rink.

Like dbny, I also like having some cash since about half my students pay me by check and the other half by cash. It's convenient to have money right there when you need it. I tend to deposit the checks and hold on to the cash.

I don't think I would mind the system you're describing, ISk8NYC. I know there's been a few times that I've accidently left the rink in a rush and have forgotten to pay my commission. I think that having students pay to the cashier who then deducts your commission would probably prevent that.

I wonder what they do if a student does not have the money to pay that week/day?

[doofsy]

Commission??? As a coach you pay commission to the club... for what? Ice time? That seems so wierd to me.... in what other profession do you pay to go to work? Unless I'm not understanding the concept..... which is possible ;)

[Clarice]

It's pretty common among music teachers, too. If you give lessons out of a music store as opposed to your own home, it's standard to pay a commission to the store for use of the studio space. Same thing at rinks.

[Isk8NYC]

Commission??? As a coach you pay commission to the club... for what? Ice time? That seems so wierd to me.... in what other profession do you pay to go to work? Unless I'm not understanding the concept..... which is possible ;)Commission payments are very common and yes, it is for using the club/rink's ice to earn money from lessons. The student's entrance fee plus commission goes to the club/rink, the remaining lesson fee goes to the coach. Usually, it's the rinks that charge commissions, moreso than the clubs.

Some Clubs in the US charge an annual flat "coaches fee" to the coach for teaching on their ice time, in lieu of a commission rate. I've also heard of rinks where they charge the instructor an admission fee, although I've never had to do that myself.

How does one track this income? Is it in your 1099 at the end of the year? Are the commissions recorded on the 1099? They're business expenses against your income.

[fsk8r]

I'm not a coach so I don't fully know how the system works from their point of view, but at my rink you pay at the counter, and collect slips of paper to give to the coach. The coach only gets a cut of what gets paid at the counter.
However, it's quite easy to lose slips of paper or forget to give them to the coaches, so most of them end up having to write the students names on them to keep track of who has paid and who hasn't.

The best system I saw was the counter having the coaches timetable and when you paid for the lesson, they signed you off in the book as having paid. Rink took their commission straight up, but the coaches could easily see who had paid and who hadn't.

Personally as a student I like paying as I go so I'm not indebted to my coach, and it's nice to be able to pay the front desk as I must admit to being a bit squeemish about the whole money transaction. It's a lot easier to hand over a slip of paper than bank notes.

[AshBugg44]

Some rinks don't have any coaches fees. That's where I'd like to teach. ;)

[jenlyon60]

Both rinks that I skate at have students pay the instructor directly for private lessons. Then the instructor pays commission to the rink.

Both rinks are privately owned, and they each run their own freestyle sessions. So these are not club sessions.

[Debbie S]

I didn't realize rinks required commissions. I guess it makes sense, although I imagine that it gets hard for coaches to track exactly how many lessons they had at particular rinks if area rinks have an open pro policy and the coach teaches at several places - and occasionally reschedules students for a different day/time and rink than the one they usually teach them at.

My club has club ice, and I think coaches have to be members of the club to teach on it, but I don't think the club requires a commission. After all, it's the presence of the coaches that brings skaters to the club and the ice time.

[jenlyon60]

I wouldn't say that all privately-owned rinks charge commission, but the 2 I skate at do. The coach was responsible for keeping track of lessons and reporting accordingly.

These 2 rinks generally keep pretty good track of who's on each freestyle session and the one rink wants the skater to mark off on the sign-in sheet if they are having a lesson on that session. So they would technically be able to cross-check between the sign-in rosters and the commissions turned in by coaches, if they had suspicion that a coach was cheating on their commissions (substantially or repeatedly cheating, that is).

[Helen88]

I just have to turn up at my lesson with the money for the lesson in my pocket, plus pay for the public session. I don't know what my coach does about paying the rink though.

[Summerkid710]

At my rink, there are no commisssions but you have to be on staff to teach private lessons or pay a fee each time you teach. Our group lesson rates paid by the recreation department are only 30% of my private lesson rate and we have to teach a minimum of three classes each session. (I mean teach the every class of the three you are signed up to do not just show up three times in a ten week session). You are also required to choreograph and assist with on our ice show which we get even less money for.

SOOOOOO, as far as I am concerned, I have paid my dues for the privelege of coaching at my rink even though I don't pay a commission.

[Isk8NYC]

At my rink, there are no commisssions but you have to be on staff to teach private lessons or pay a fee each time you teach. Our group lesson rates paid by the recreation department are only 30% of my private lesson rate and we have to teach a minimum of three classes each session. (I mean teach the every class of the three you are signed up to do not just show up three times in a ten week session). You are also required to choreograph and assist with on our ice show which we get even less money for.
At my last rink, the Staff coaches paid 10% on the private lessons, Guest coaches paid 20%. Group lessons paid a lot more though, about 2/3 the private lesson lesson rate. Oh, and if you neglected to keep up with your commission payments on a timely basis, there was an additional charge or your coaching privileges were suspended.

I found out something that I should have known, but I didn't remember. Coaches who teach on the Club ice time don't have to pay a commission and receive the lesson fee directly; if you teach on the public, freestyle, or group ice the student pays through the rink and the commission is already deducted.

Thanks to whoever for the tip on writing the student name on the slip - I used that today when I paid the twins' coach.
I can see how that would be confusing at the end of a long day, especially if the kids were dropped off without $$ in error.

Can I ask if anyone knows the specifics behind how these payments hit my taxes? Are they included on my 1099 with my group lesson revenues? What about the commission rate?

[NoVa Sk8r]

And some rinks use commissions as a levy to compel instructors to teach the highly profitable LTS classes. That is, if you teach LTS, your commission might be 10%; if you don't teach, then the commission is something like 25%.

I've noticed that in some areas, coaches change their lesson fees depending on the commission rate at each rink.

[Isk8NYC]

I've noticed that in some areas, coaches change their lesson fees depending on the commission rate at each rink.
I charged more when I taught in northern NJ for a season. It was to offset my travel expenses because of the distance. I think that varied rates are pretty common when there are rinks that charge high commissions or where a coach has to be a "guest coach" because of situations. Happens a lot during the summer when rinks shut down for the season or need ice melt/maintenance time. The coaches and skaters are forced to leave their "home rinks" and pay higher fees elsewhere.

As for the commission rate reduction - it's absolutely to encourage coaches to be "on staff" for LTS. It was cited as the easiest way to get QUALITY LTS instructors for those programs at several coaches' seminars. If a skater has a great teacher in LTS, it's more likely they'll stick with skating and go on to become a private student anyway. This just increases the pool of likely private candidates later on.

[Tramp]

Why would the coach pay a commission to the rink if the skater is paying for the ice and the coach for the lesson. The coach is bringing the students to the rink to pay the ice rates. That is like double dipping.

[dbny]

Why would the coach pay a commission to the rink if the skater is paying for the ice and the coach for the lesson. The coach is bringing the students to the rink to pay the ice rates. That is like double dipping.

Greed. OTOH, the rink is providing the venue for the coach's business.

[sk8nlizard]

I think that we live in the same state (you were at that conference in Raleigh) and I think we teach in the same system of rinks. I keep track of who has paid by making sure parents put the skaters name on the slip. I also ask that my slips are put in my box no later than 1PM on Saturdays when I leave the rink. This is so that people that have multiple lessons with me in one week can just pay for it all at one time.

As far as what it means for your taxes. The money I made through the rink was put on my 1099, my comission was not included on the form. I really wish they would include this, because I know where I work it is substantial. When I went to the accountant she asked how much my comission was (the percentage) and she somehow deducted it. Hope this helps!

[Isk8NYC]

Thanks for the reply.

Did the 1099 include the gross lesson total, let's say $30 or the net amount, say $27?
If it's the latter, you wouldn't need the commission amount since the earnings are after commission.

[isakswings]

Personally as a student I like paying as I go so I'm not indebted to my coach, and it's nice to be able to pay the front desk as I must admit to being a bit squeemish about the whole money transaction. It's a lot easier to hand over a slip of paper than bank notes.

This is how I feel too. I am not a student, but my daughter is and I pay her coach directly. I pay for her ice time at the desk(5.00 fee for freestyle time) and then I pay her coach after her lesson. I'm actually planning on paying her every other week, because those are my pay days. My daughter's friend's mom, pays her coach monthly. Myself, I find it easier to pay as I go.

[ice_godess]

Just curious - since my coaches bill me monthly for private lessons and I skate at a club and training centre where coaches don't have to pay commissions or anything - what level of skater are coaches who teach on these public or non-club sessions? Are most of the skaters who do these 'pick up' lessons and public sessions in the low-level preliminary or high learn-to-skate badge group, or are you coaching higher level skaters?

On training centre ice, any coach with credentials and insurance, can teach their students without paying any commmission, and on club ice coaches have to be staff coaches, or else have permission to guest teach their own students on that session - but they don't pay anything.

However, I do know that some clubs charge guest coaches for the priviledge of coaching their own students (who pay guest fees for skating at the club)....the Skating Club of Boston charged my coach $20 per session to coach me (and I wasn't being charged a lesson fee btw because we were in town for a competition) and Lake Arrowhead charged a lesson commission per session or per week as well but ended up not making us pay.

Charging a commission means the lesson prices are steeper - doesn't it? The coaches pass that cost on to the skater/parent, I would assume.

As for keeping track of lessons - don't all coaches have a daybook where they record the name and length of lesson in it after each session and then use that record to tally up how many lessons and how much money they are owed/have made during the year.

[techskater]

Not necessarily low level or high level specifically. In our state, the clubs are spread out and very few have "club" ice. Rinks are privately owned and don't necessarily belong to a club. Each rink sets their own charges to the coach for commision. One rink I skate at is nothing, one is nothing if you are on staff (teach at least one LTS class a week) and one is $2/lesson

[ice_godess]

Do coaches get paid to teach that LTS class or is it considered to be pro bono?

At our rink, coaches are paid a lot less than their private fee for teaching LTS classes, but it is implied that this is a way to give back to the club for letting you teach there... Same with volunteering with ice shows, club competitions etc. (however, it is always the same small group of coaches that do all that -- the rest turn up their noses at actually contributing to the life of the club that pays their mortgage!!!)

[Mrs Redboots]

We pay our coaches both for our lessons and for the use of the practice ice. They, in turn, pay rent to the rink which includes a fee for the ice. I believe a portion of their rent is remitted if they do schools or LTS classes, but by no means all of it.

[littlekateskate]

At both rinks we skate at they have both.

They have higher level coaches that you pay directly to the coaches. THen as well they have some of the lower level coaches with less experience that you pay directly through the rink.

Both our rinks have this system. So depeneding on who is coaching my kids depends on who i pay. :)

[fsk8r]

One of the big gripes about the front desk paying system at my rink, is that there is no distinction between coaching experience. A level 2 coach (lowest teaching level) earns the same as the level 3 and level 4 (most experienced). I know it's a gripe amongst the coaches. Doesn't help that the rink is oversubscribed, so it's not as if the more experienced coaches attract more students, there's too many to start with so all coaches are generally solidly booked if they want to be.

[techskater]

Do coaches get paid to teach that LTS class or is it considered to be pro bono?

At our rink, coaches are paid a lot less than their private fee for teaching LTS classes, but it is implied that this is a way to give back to the club for letting you teach there... Same with volunteering with ice shows, club competitions etc. (however, it is always the same small group of coaches that do all that -- the rest turn up their noses at actually contributing to the life of the club that pays their mortgage!!!)

LTS is paid $10 for 40 minutes (or some such pitance compared to private lesson fees). Some people take their LTS in ice time. :D

[Thin-Ice]

Why would the coach pay a commission to the rink if the skater is paying for the ice and the coach for the lesson. The coach is bringing the students to the rink to pay the ice rates. That is like double dipping.

It's like a hairdresser or manicurist renting a station in a hair or nail salon. The business owner provides the space, the electricity, the setting for the clients, the maintenance of the facility and all of that costs money, whether it's an ice rink or salon.