Barbara wrote:

- quote -

A perfect example of such is an NOL carried forward.

- quote -

.....And what about the payroll taxes for these sub-hires?

This is much more messy than your initial question implies.

I saw this type of situation exactly once during my IRS days
- where an employee had the right to hire assistants that
were not considered employees of the company (while some
others - 50% in number - were). That turned out to be the
only employment tax audit that my INCOME tax audit group
performed that year, and doing "941 SFR's" in order to open
the issue (for the omitted employees) was an experience in
itself. [We treated him as a "statutory employee" using a
Schedule C in order to get everything processible.]

Your coach may be like a "manager" with the power to hire
and fire, but if he's an employee, then whomever he hires
and fires will most likely be employees too. The school
district is facing an adverse decision should the points in
IRS form SS-8 be considered....

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Thanks for your response Peter. "W-2" went through my brain
as I hit the "send" but no withholding was done. This is HS
swimming. The practice of paying a head coach and having
them find and "share" with any assistants they can get to
help them has been common since before my kids were
participating 15 years ago but back then the head coaches
weren't W-2. They used to get [at] $2,000 and the HC used to
"share" [at] 1/2 among his "assistants". Now the #s seem to
have almost doubled and other than the HC being W-2, the
practice appears to be the same. This coach split [at] $1,300
between a couple of former HS swimmers who came in to help.

~Barbara

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Barbara wrote:

- quote -

Some may/will disagree, but I say form 2106 and schedule a
for the payments.

Also no 1099's required, since this is not a trade or
business.

Make that my ... four cents worth, because of inflation last
year.

ChEAr$,
Harlan Lunsford, EA n LA

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"Barbara" <bvsea[at]value.net> wrote:

- quote -

Certain things can be negative there. Such as an NOL. This
is not one of those situations.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"Barbara" <bvsea[at]value.net> wrote

- quote -

Barbara:

Perhaps I'm missing something. You quote that TP is
expected to pay assistants out of this amount so "they don't
have to go through the hassle of being hired by the
district". Who told you this, the TP or someone from the
school district?

This implies that the assistants would normally be employees
of the district and receive a W-2 like the head coach.
However, you then say that 1099s will be issued. Since the
coach is paying the assistants, the coach will be issuing
the 1099s.

Who are the assistants really the employees of; the coach or
the district? Who has the right to fire them? Whose rules
do they ultimately have to follow? Etc., etc., etc.

What about legal issues? For instance, one of the
assistants goes "crazy" after a bad call and hits a referee,
or worse, a player. The assault victim discovers that the
coach is the one paying the assistant and sues the coach for
not controlling his paid "employee" or "contractor".

Are OASDI and Medicare taxes withheld from the coaches
salary? If so, and the assistants are getting paid by the
coach, I can bet that the coach is not W/Hing payroll taxes
AND matching them as would be his obligation as an employer.
So he's getting the benefit of the assistants' SS taxes
(and the employer (district) match. The same goes for state
payroll tax issues.

Now maybe someone will come in and say this is normal
practice and accepted by the IRS and state employment
agencies. But to me, this smells.

Peter C. Gatto, CPA

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Barbara <bvsea[at]value.net> wrote:

- quote -

Not a Line 21 deduction.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I have seen suggestions as to when a negative amount is
indicated for 1040 Line 21. I'm wondering if this might be
one. Perhaps someone here has experience in this area. TP
gets paid W-2 wage by school to coach team. TP is expected
to pay assistants out of this amount so "they don't have to
go through the hassle of being hired by the district".
Originally thought this expense would go on Form 2106/Sch A
but wonder if it can go on Line 21 as a negative (to reduce
W-2 wage "intended" to pay the assistants). This would make
a difference of +$100 in tax liability. Amounts are over
$600 so 1099s will have to be done in any case.

Thanks for any insight.
~ Barbara

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