Amateur Coach Could be Employee Subject to Payroll Tax

Amateur Coach Could be Employee Subject to Payroll Tax

Do you pay a coach for a school sports program, travel sports team, or league-sponsored sports event?
These workers may be employees and payments for their services may be subject to employment taxes. The most important factor in determining whether a worker/coach is an employee is the right of the principal to control the manner and means of accomplishing a desired result. The Information Sheet: Employment (DE 231) lists 11 factors to consider in determining whether a worker is an employee or independent contractor. The determination will depend upon a group of factors in relationship to the services being performed rather than a single controlling factor.

For information on other types of workers in the amateur sports industry such as officials, assistant coaches, trainers, directors, administrators, and administrative support, please refer to the following resources:
Information Sheet: Amateur Athletic Officials (DE 231AA)
Information Sheet: Wages (DE 231A)
Information Sheet: Nonprofit and/or Public Entities (DE 231NP)
Information Sheet: Types of Employment (DE 231TE)

For further assistance on the employment status of coaches, please contact our Taxpayer Assistance Center at 1-888-745-3886, or visit the nearest Employment Tax Office listed in the California Employer’s Guide (DE 44) and on our website at Office_Locator.

Source: EDD

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This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please contact your employment attorney in connection with any fact-specific situation in which you intend to take significant employment action. Readers agree that they will not hold Payroll Masters in indemnity and Payroll Masters assumes no liability. Payroll Masters is not engaged in rendering legal or accounting services. Therefore, Payroll Masters assumes no responsibility for claims arising from the use or implementation of the above information.