Are youth soccer coaches independent contractors or employees? Why do some clubs have independent contractors and other clubs have employees? Shouldn't they all be doing it the same way? What is the law on this?
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If a club requires coaches to follow their curriculum/methodology, that is the kind of control that means the coach is an employee. Here is a presentation for USYS clubs in PA:
https://usys-assets.ae-admin.com/ass...Contractor.pdf -
it's not unique to soccer clubs, this independent contractor/employee skirting of the irs law is done in so many industries from uber to amazonComment
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Pretty sure Federal Way FC coaches are all independent contractors. I've heard that PacNW coaches are independent contractor as well, but how can that be verified? Seems like someone would have to actually ask the club director or board about it. If PacNW coaches are independent contractors, they may have trouble because they are definitely telling their coaches what to teach per their website - no discretion:
"Curriculum: All players receive training from the club’s deliberate, integrated, long-term plan for player development. This curriculum that offers a seamless transition for players from U-8 through U-19. While the specific skills and techniques will change as players mature, the tactical concepts and systems of play remain constant. At other clubs where coaches may have discretion in selecting training methodologies, at PacNW we provide a unified and consistent approach."
https://www.pacificnorthwestsoccercl...out/why-pacnw/Comment
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So true. Funny that you mention Uber. One of their competitors is suing them in California right now over this. They think its unfair that they treat their workers as employees and Uber treats theirs as ICs. Unfair as in Uber is skirting IRS laws and paying less for their workforce.Originally posted by Unregistered View PostComment
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What is best for coaches? Employee or IC?Comment
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If you're an employee your employer pays your payroll tax. If you're an IC you pay it. So it depends on whether you're getting any pay differential to compensate or not. Also employees have other rights in terms of work hours breaks etc that ICs do not but this doesn't really apply to coachesOriginally posted by Unregistered View PostComment
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Maple Valley Premier got busted by the IRS several years ago for this exact reason. They had to pay back taxes in the mid five figures. Definitely think this is a way Clubs keep fees and pay for coaches. Who’s paying the taxes.Comment
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Based on the amount of control coaches have and what clubs provide, I think the IRS wouldn't see most of them as an IC based on a number of things:
Does the club provide equipment, or is the coach purchasing it / using their own?
Does the club expect for the coach to wear club gear?
Does the club pay for coach training?
Does the club provide curriculum and require the coach to follow it?
Is the coach able to set their own hours and work location or does the club tell them where and when to work?
I'm guessing that for most big clubs, most or all of these things are true.Comment
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If they wear club gear, are required to follow club curriculum, use club fields, use club equipment and take orders from the DOC or club directors, then they are employees. Full stop. Their club needs to be paying taxes. Otherwise, the people in charge will get tagged personally if the club can't afford to pay all the back taxes, penalties, etc. This is a massive issue and CPAs and lawyers are constantly telling their clients not to misclassify their workers. Clubs need to get professional advice.Originally posted by Unregistered View PostComment
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Isn’t this why they play the charade of being a non profit ? Which is laughable at best .Originally posted by Unregistered View PostComment
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Ha ha! So true. If the clubs aren't paying taxes on their coaches, then they are making more money than they should and probably paying it to the guys in charge. The Council on Non Profits has really good information on misclassification. Someone in State government should be looking at the clubs to make sure they are doing things legally.Originally posted by Unregistered View Post
https://www.councilofnonprofits.org/...yees-correctlyComment
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