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

[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.

[Mark Padgett]

Originally Posted by jdw3018

I operate my own business in my "regular" profession as well, so the S-Corp is the best way for me to go...

Me too.

[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.

[Camron Rust]

Originally Posted by BillyMac

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

He was talking in Yen.

[JugglingReferee]

As you know, hockey in King in Canada, and Toronto is a huge market. I've heard of some leagues that play until 2am - because ice time is so sought after. I had a tax friend tell me that Revenue Canada is having a trial program this winter where they're tracking how much money people make officiating hockey in the GTA. While I've never cared to see anything official on the topic, and it'd be silly for my friend to lie about it, it is scary ground for the rest of us here in Canada. Maybe I should pay attention to this topic.

[Skarecrow]

Originally Posted by BillyMac

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

100%....60% and 40%....In the last posting, I was lazy and couldn't find the % button.....I would love to make $100K reffing......but my other business is Security Consulting....I am doing a Schedule C for the reffing, because I can't mix my two different skill sets in my Sub S......