We do live in the real world and they’re not employees. In what screwed up universe does the employee say I’m not going to Vegas for the job? You just lost on behavioral. As far as financial my nephew who plays a big ten sport got paid a 1099 from the big ten as a royalty not his school. I’m going with that’s how revenue share works. Is he a big ten employee, not a chance. This is pretty gigantic. It’s not some small business under the radar from the irs. Within 3 months the irs was looking into collectives as non profits. Why wouldn’t they move on this? Also if employees your seton hall basketball tickets would be a minimum of $75 per ticket per game more in order to pay an employee.You may be correct that they get 1099's but in the real world they are actually W2 employees since the coach (school) has total control over when they work (play) how much they work, hours of work etc... Then there is the medical aspect. The school provides medical care when a player is injured. Provides room and board.
1099 contract workers and W-2 employees are classified per the IRS based on how you work with and compensate them. The IRS lists three dimensions to be aware of when you’re classifying workers:
The IRS explicitly points out that a contract stating the worker is an independent contractor and responsible for their own taxes isn’t sufficient to consider the worker a contractor. Instead, the agency looks at the reality of your working relationship to determine the classification if it’s in question.
- Behavioral: Does the company control how the worker does the job? The more you control things, such as a worker’s work schedule and location, which tools they use and the methods they use to complete tasks, the more likely they are to be classified as an employee.
- Financial: Does the company control business aspects of the worker’s job, such as how they’re paid and whether they can seek other work in the market? If the answer is yes, it’s more likely the worker should be considered an employee rather than a contractor.
- Type of relationship: Does the employer provide benefits, such as insurance or paid time off? Is the job expected to last indefinitely? Are the provided services a key aspect of the business? If any of these are true, it’s possible a worker should be classified as an employee.
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