It's the law: Athletic officials need a license to call

[BillyMac]

"Officials make anywhere from $46 (girls varsity water polo)".

Do you have to know how to swim to officiate? I'm not a great swimmer. I'm not drowning for $46.

[Mark Padgett]

Actually, it doesn't bother me at all. I have an S-corp and all my referee income is paid to the corporation. I pay a state corporations tax and a city home occupation permit fee. It's well worth it. If you have quite a bit of referee income, I suggest you speak with your tax professional.

[bob jenkins]

Originally Posted by Mark Padgett

Actually, it doesn't bother me at all. I have an S-corp and all my referee income is paid to the corporation. I pay a state corporations tax and a city home occupation permit fee. It's well worth it. If you have quite a bit of referee income, I suggest you speak with your tax professional.

Can you provide some more details? What income can you defer / expenses can you take under the S-Corp that you can't take on schedule C?

[Skarecrow]

I have had a S Corp for years, and really the only real benefit I find is maybe some protection via the corporation from personal losses should there be a suit of any kind....I have to pay employer's share of W-2 taxes, Withholdings, Medicare, FICA...all of the normal....as a Schedule C, you have to pay your SE taxes....my accountant tells me there is a substantial savings to the S Corp, but I really haven't seen it....I THINK!

You need a good interview with your tax man to decide what to do...I keep thinking of going back to the Schedule C, but I do like it that he does my books....

[jdw3018]

Originally Posted by Skarecrow

I have had a S Corp for years, and really the only real benefit I find is maybe some protection via the corporation from personal losses should there be a suit of any kind....I have to pay employer's share of W-2 taxes, Withholdings, Medicare, FICA...all of the normal....as a Schedule C, you have to pay your SE taxes....my accountant tells me there is a substantial savings to the S Corp, but I really haven't seen it....I THINK!

You need a good interview with your tax man to decide what to do...I keep thinking of going back to the Schedule C, but I do like it that he does my books....

With an S-Corp you have to pay yourself a salary, and the taxes on that is no different than the taxes for a sole proprietorship (I mean, they're different, but they add up to the same amount in bottom line terms to you).

However, with an S-Corp you don't have to take your entire income as salary, and any income taken at the end of the year beyond that salary is treated as a dividend and taxed as such. That's where the savings come in.

In my opinion, to take advantage of the S-Corp (which includes additional fees and is a more complicated filing process) you have to have a decent amount of income. But it definitely pays to consult your accountant.

[bob jenkins]

Originally Posted by jdw3018

With an S-Corp you have to pay yourself a salary, and the taxes on that is no different than the taxes for a sole proprietorship (I mean, they're different, but they add up to the same amount in bottom line terms to you).

However, with an S-Corp you don't have to take your entire income as salary, and any income taken at the end of the year beyond that salary is treated as a dividend and taxed as such. That's where the savings come in.

In my opinion, to take advantage of the S-Corp (which includes additional fees and is a more complicated filing process) you have to have a decent amount of income. But it definitely pays to consult your accountant.

But, dividends are taxed at the same rate as earned income, I think.

[BillyMac]

Originally Posted by bob jenkins

But, dividends are taxed at the same rate as earned income, I think.

Are your referring to federal, state, county, or city, or borough taxes?

[jdw3018]

Originally Posted by bob jenkins

But, dividends are taxed at the same rate as earned income, I think.

Aside from the current advantage of a lower tax rate, the other advantage is that you won't owe self employment taxes on that portion of the income.

That's where the big savings come in.

[Skarecrow]

Originally Posted by jdw3018

With an S-Corp you have to pay yourself a salary, and the taxes on that is no different than the taxes for a sole proprietorship (I mean, they're different, but they add up to the same amount in bottom line terms to you).

However, with an S-Corp you don't have to take your entire income as salary, and any income taken at the end of the year beyond that salary is treated as a dividend and taxed as such. That's where the savings come in.

In my opinion, to take advantage of the S-Corp (which includes additional fees and is a more complicated filing process) you have to have a decent amount of income. But it definitely pays to consult your accountant.

Agreed.....I take about 60 as a salary and the other 40 as a dividend.....works out ok, I hope

[jdw3018]

Originally Posted by Skarecrow

Agreed.....I take about 60 as a salary and the other 40 as a dividend.....works out ok, I hope

I operate my own business in my "regular" profession as well, so the S-Corp is the best way for me to go...I can't imagine it would be worth it for me to do it only for my officiating income.

Now, if I were officiating multiple sports all year round, high school, youth leagues, adult leagues, etc., or was heavy into college officiating where the income became substantial, then I could see it.

But, for the $2-3,000 minus expenses I currently make from officiating, it alone wouldn't be worth the extra bookkeeping hassles and fees.

[BillyMac]

Originally Posted by Skarecrow

Agreed.....I take about 60 as a salary and the other 40 as a dividend.....works out ok, I hope

Just basketball? $100,00.00? You must work some schedule.

[w_sohl]

Originally Posted by BillyMac

"Officials make anywhere from $46 (girls varsity water polo)".

Do you have to know how to swim to officiate? I'm not a great swimmer. I'm not drowning for $46.

Don't officiate it but know people who do. You walk along the edge of the pool.

Didn't you watch any Water Polo in the Olympics?

[BillyMac]

Originally Posted by w_sohl

Didn't you watch any Water Polo in the Olympics?

A friend of mine is a big supporter of the ASPCA, the Humane Society, and PETA, and asked me not to watch water polo. He claims that too many horses drown during these contests.

[26 Year Gap]

Originally Posted by w_sohl

Don't officiate it but know people who do. You walk along the edge of the pool.

Didn't you watch any Water Polo in the Olympics?

Billy is afraid someone will push him in after a 'no-call'.

[JugglingReferee]

Originally Posted by 26 Year Gap

Billy is afraid someone will push him in after a 'no-call'.

That would have to be a flagrant technical foul.

Unless he deserved it, of course!