Ref fees / taxed??

Okay, first off, I apologize if this has already been asked/answered.

First question: Just curious, what does a typical competitive soccer ref make in a typical year? I imagine potentially a hundred each weekend they work with multiple games. Maybe more?

2nd question: are these refs set up as contractors? And do they have to adhere to same tax income laws?

It feels weird handing these guys/gals money in an envelope. I like to act really suspicious when I do it. Looking all around me. Then telling them I slept an extra $20 in it to have calls go our way!! (Just kidding about that last part).

Joe scafone wrote:Okay, first off, I apologize if this has already been asked/answered.

First question: Just curious, what does a typical competitive soccer ref make in a typical year? I imagine potentially a hundred each weekend they work with multiple games. Maybe more?

2nd question: are these refs set up as contractors? And do they have to adhere to same tax income laws?

It feels weird handing these guys/gals money in an envelope. I like to act really suspicious when I do it. Looking all around me. Then telling them I slept an extra $20 in it to have calls go our way!! (Just kidding about that last part).

The general rule or guideline is:

If no 1099 income was reported by the payer, then the money never existed!

If you work weekdays and weekends, easily $300-500 a week. Depending on the level of game.

As far as taxes, you don't have to claim taxes because most leagues pay in cash. My first year I didn't to a lot of games for fear of tax issues. Afterwards, I found out that you don't have to pay taxes. Then I was like, "Yeah baby!"

High Schools refs submit a W-9 to every district you work with. However, they will not supply you with 1099 at the end of the year as long as you make less the $600 per district. So with UIL you have to keep track of the monies you receive a little more carefully.

unless the IRS audits and finds records that show you worked the games and recieved money. At that point you would owe the tax and back taxes. I would assume it is not enough to warrent a audit. I would assume the league has some sort of record as to who officiated the matches. Any paper trail=taxes. Oh and to anyone who hates their ref, the IRS does offer a percentage reward in case you want to tell.

go99 wrote:unless the IRS audits and finds records that show you worked the games and recieved money. At that point you would owe the tax and back taxes. I would assume it is not enough to warrent a audit. I would assume the league has some sort of record as to who officiated the matches. Any paper trail=taxes. Oh and to anyone who hates their ref, the IRS does offer a percentage reward in case you want to tell.

See... no wonder our nation has a revenue problem.

well we have a revenue problem because "too big to fail" also means "too big to pay taxes"

I was an assignor for a fairly large recreational/city league. Even with paying cash, it was our "responsibility" to keep track of what was paid to the referees (based on scheduling) and giving 1099's to anyone that made over $600 at the end of the year. I didn't do that...it was the treasurer's job so whether or not he did...I don't know. You are talking mostly 13-16 yr old refs in rec/city league. Select would be entirely different. Seasons are generally what 10 weeks...then tournaments? I do not think referees make $350 a weekend...unless they were super short of referees and someone worked all day. Most work 3 or 4 game shifts and switch between lines and centers. Centers make around $65 I think (it has been awhile) and lines $40ish? So maybe $200 - $300 if they do both Sat & Sun...that is above average I would guess. So it is probably a couple of thousand a year...maybe 3 or 4K max??? Possibly enough for our government to worry about so they can find some stupid way to squander the taxes from it I'm sure.

High school is paid by check from the district so they definitely send 1099's to anyone who made over $600 a year.

GLASA switched in the last couple of years to the RefPay system and no longer pays refs in cash. My kids ref and they heard that GLASA a) didn't want to handle lots of cash each weekend and b) didn't want to responsible for tax issues.

go99 wrote:well we have a revenue problem because "too big to fail" also means "too big to pay taxes"

p.s. I was being sarcastic about "revenue problem".

As far as I know have never really been taxed for refereeing I know in HS if you make over 600 in a district you have fill out the tax form. As far as youth, i think unless you get paid via check you dont have to declare or maybe you are i dont know all the rules on that though. All the leagues I have ever refereed in paid cash. I would say 60-100 per day is typical if you do 3 games. usually get either two lines in a middle or two middles and a line. Depending on age u11 and u12 pays 20 for a line, 28 for a middle, u13/u14 is 22 for a line and 32 ( may need to check on this ). I know when i do taxes i do turn my checks in, but never make enough with those to go over 600.

mommabear1 wrote:I was an assignor for a fairly large recreational/city league. Even with paying cash, it was our "responsibility" to keep track of what was paid to the referees (based on scheduling) and giving 1099's to anyone that made over $600 at the end of the year. I didn't do that...it was the treasurer's job so whether or not he did...I don't know. You are talking mostly 13-16 yr old refs in rec/city league. Select would be entirely different. Seasons are generally what 10 weeks...then tournaments? I do not think referees make $350 a weekend...unless they were super short of referees and someone worked all day. Most work 3 or 4 game shifts and switch between lines and centers. Centers make around $65 I think (it has been awhile) and lines $40ish? So maybe $200 - $300 if they do both Sat & Sun...that is above average I would guess. So it is probably a couple of thousand a year...maybe 3 or 4K max??? Possibly enough for our government to worry about so they can find some stupid way to squander the taxes from it I'm sure.

High school is paid by check from the district so they definitely send 1099's to anyone who made over $600 a year.

You do have referees that work through the week. Just doing 2 games a night with H.S. You'll make $300 a week. That's three nights a week. Then I know guys on weekends that will do Classic/Lake Highlands in the mornings and avg $120. Afterwards they'll take a 3 hour break and then do Arlington/Plano and do 3 games and make $120. This is Saturday only and don't forget they can do the same on Sunday. So yes, $500 per week is possible. It's hard work but possible. Especially when you're trying to save for ski trip over spring break.

So who's responsible for the tax liability? League who hires these refs...I assume as contractors. Or the individual club who dishes out the cash for the payment. Our team alone paid out just in league play $630 annual. 30 in this age group that's $18,900. I know the older teams have larger ref fees so let's say with 9 total age groups in this league you have well over $170,000 changing hands through out the year.

I think it was about 6-8 years ago under the Bush Admin the IRS notified NTSSA and other youth organizations that they were going to start looking at the paid employees/contractors of such groups. NTSSA then notified the individual associations that they had to start tracking referee pay and issueing 1099s to anyone paid over $600 per year. I believe most associations do these days. That is one reason you see refs move from league to league or association to association; to stay under the $600 cap.

Joe scafone wrote:So who's responsible for the tax liability? League who hires these refs...I assume as contractors. Or the individual club who dishes out the cash for the payment. Our team alone paid out just in league play $630 annual. 30 in this age group that's $18,900. I know the older teams have larger ref fees so let's say with 9 total age groups in this league you have well over $170,000 changing hands through out the year.

The ref is going to be an independent contractor, and responsible for his own taxes. See p.30. "Fees for Services", and p.28 "Bribes" for the tax treatment of ref fees and the extra $20 you submitted.

It is typically not reported by individuals, as there are no 1099s issued. Different teams pay different refs, so no team is going to be paying more than $600 to any one ref, even if someone was tracking it, where as the schools pay the refs for high school games, and probably use fewer refs, they are more likely to pay someone $600+.

See the second paragraph under "Introduction" for the bottom line on taxability.

http://www.irs.gov/pub/irs-pdf/p525.pdf

I believe that since the league is scheduling (hiring) the refs (contracters) and setting the pay and method of payment ( telling teams that X amount for refs is part of the league cost) then thsy are responsible for issueing 1099s not the teams.
After all the refs are hired by the league not by the home team.

So who actually pays the refs, the league, or the teams? I haven't done it in awhile, I know at least at times the teams had to pay the refs pregame. I think the 1099 responsiblilty lies with who actually pays.

Good question. Any accountants?

Some questions are better left not asked... Some doors are better kept shut.

I recommend moderators delete this thread ASAP!

The payer normally issues and files the 1099 unless they are paying on behalf of another organization. I suppose it could be argued that since the league hires and assigns the refs, the team or club is paying on behalf of the league. I'm not sure and it's not worth researching because the team almost certainly won't pay the same ref over $600 in a year. I guess the club might.

Regardless, a 1099 has very little meaning to the recipient except to inform them that the income has been reported to the IRS. It is the taxpayer's responsibility to report all of the income they receive whether or not they received a 1099.

The IRS has various ways to identify underreported income but as one poster said earlier, it would take an audit for them to find the cash payments.

Circular 230 disclosure: This information is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

I learned in tax 1=1 that the difference between tax avoidance and tax evasion is jail time.

geno105 wrote:The payer normally issues and files the 1099 unless they are paying on behalf of another organization. I suppose it could be argued that since the league hires and assigns the refs, the team or club is paying on behalf of the league. I'm not sure and it's not worth researching because the team almost certainly won't pay the same ref over $600 in a year. I guess the club might.

Regardless, a 1099 has very little meaning to the recipient except to inform them that the income has been reported to the IRS. It is the taxpayer's responsibility to report all of the income they receive whether or not they received a 1099.

The IRS has various ways to identify underreported income but as one poster said earlier, it would take an audit for them to find the cash payments.

Circular 230 disclosure: This information is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

When you see this, it is authoritative.