From what you described your organization is an educational organization offering classes. It’s similar to a school, just not a full-service school. I know you don’t like the idea of having to treat everyone as an employee and the increased taxes and paperwork. None of us like taxes or paperwork, but it’s the law of our land and it may be what is fair to the teachers. Right now your teachers are bearing the brunt of the payroll taxes themselves.

Paying employers taxes for part-time seasonal employees with no benefits may not be all that expensive. It shouldn’t be financially impossible for families to afford if you get creative about other ways to raise money or use more volunteers. Lots of homeschool parents are happy to pay extra for excellent, quality teachers.