Music lessons

[nccchurch]

We use a payroll company and have a music director that gives private lessons. We collect the money from the parents and let the payroll company know how much has come in each week on his timesheet.
The payroll company makes sure that this is treated as taxable income for the music director.

So, how do I handle the payment? Set up an income account for "lessons" and then an expense account for "lessons" in an account near his salary account?

Thank you,
Kathy

[JohnDMeyers]

The income part I agree with. It would seem to me that the money for lessons is part of his pay, not an expense.