Disclaimer: I'm not an attorney, not trying to impersonate one, not trying to give legal advice.

That said, there may be some restrictions on hiring of tutors, due to employment laws and income tax reporting.

Unable to find the link I was thinking of, here is something else entirely... it is a link from social security administration and does not apply to tutoring. http://www.ssa.gov/OP_Home/cfr20/404/404-1057.htm