Trainer PaymentsUpdated Monday August 21, 2017 by POB Soccer.
Some of you know me, some don’t. My name is Marc Breier and I am the Treasurer of the soccer club. I must admit that I sometimes take it for granted that everyone understands the rules around paying trainers. As I am sure you know by now, there are quite a few policies around who can be a trainer and the various requirements for risk management, insurance and trainer compliance with the rules of our club. These “policies” and requirements are established for the benefit and safety of our Players, Club Members, Coaches and Board. The same is true for the procedures established to pay these trainers.
There is frequently confusion about the process for remitting payments to trainers as well as paying for tournament participation. This e-mail should clarify this process. The club remits payments to trainers directly in order to properly account for these funds, which we are required to report to the IRS at the end of each calendar year. In remitting payments to Trainers, the club is not accepting the financial responsibility for these obligations. The club is simply acting as a paying agent in order to collect the necessary information for this reporting requirement. Each team is responsible for establishing a team budget and collecting training and other fees directly from parents in order to cover these expenses. The preferable manner to effect this process is as follows:
1. Each Travel Team should establish their own team bank account – this can be done in the name of the coaches or I have seen some teams actually open the account in the name of the team.
2. As you are aware, teams may only use trainers that have been approved by the club. These trainers have provided the club with the necessary IRS forms (W-9 forms, etc.), evidence of Risk Management and evidence of proper/required insurance coverage. Coaches should inquire whether or not their Trainer has provided the club with a W-2 form. Most trainers have done so, but if your trainer is new to the club and has not provided a W-2 form to the club, their payments will be delayed.
3. Coaches and Trainers should agree upon the training fees, frequency of training, and payment terms. It is highly recommended that Coaches discuss these terms with the Travel VP to ensure that the terms are in line with what other teams are being charged by trainers throughout the club. This also allows the club to ensure that fees are consistent to all members of our club, it being understood that trainers do charge market rates that are consistent with their experience. Payment terms are generally monthly or at the end of each season. Each travel team coach should advise the club Treasurer by e-mail the name of their trainer and the agreed upon payment frequency. Coaches should advise the Trainer that they are responsible for sending a copy of their invoice directly to the POBSC Treasurer (easiest to cc the Treasurer when they deliver the invoice to the Coach – Treasurer e-mail is firstname.lastname@example.org). Sending the invoice directly to the Treasurer will help to make sure that Trainers payments are not delayed so long as teams are remitting payment to the club when they receive the invoice too. It is highly recommended that Coaches remit payments to the club immediately after receiving the trainer invoice, which will ensure that the trainer is paid in a timely fashion. The club will not remit payment to the trainer prior to receiving payment from the team.
4. Each team establishes a season or full year budget – this includes an estimate of training fees and tournament fees. A per player cost is derived and coaches can collect these funds on a monthly basis, season basis, or all at once. Each team should keep their own accurate records of who owes what and who has paid. Amounts collected should be deposited into the team account.
5. Based upon the agreed upon payment terms, Trainers must deliver an invoice to the Team Coach and the POBSC Treasurer – preferably by e-mail (simultaneously sent to Coach and POBSC Treasurer). Upon receipt of the training invoice, the Coach should deliver to the POBSC Treasurer a team check for the amount of the invoice (along with either a hard copy of the invoice or forwarding the invoice by e-mail indicating that the fee is correct and that a check is being remitted to the club in order to pay the trainer). The team check should be made payable to POB Soccer Club. Upon receipt of the invoice and the team payment, the club will record these receipts and disbursements into the Travel Team ledger account and remit payment to the Trainer. This payment will generally be remitted to the trainer within 2 weeks of the receipt of the team check. Frequently, this payment occurs in a short period of time. However, Trainers and Coaches should be aware that I do go on vacation from time to time and my day job requires travel and I am out of town on business with some regularity. At the end of each calendar year, the club will deliver a 1099 to each trainer.
6. For tournament participation, teams should register on their own and pay for the tournament from their team account directly. The POB Soccer Club should not have any involvement related to payments for tournaments.
There are several teams that have historically collected checks from parents that were made payable to the POB Soccer Club. These checks were remitted to the Treasurer and deposited into the club account. The Travel Team Ledger account reflects funds received from each team and payments disbursed on behalf of each team. While deposits from parents in the aggregate are recorded in that ledger, details on who has paid are not – again, each team is responsible for maintaining their own records reflecting who has paid what.
The necessity for the club to collect and remit payments for/to trainers has been established to ensure that the club is not exposed to employment tax liabilities. The soccer club does not have any “Employees”. Board members, coaches, and others act as volunteers and are not compensated for their services. Trainers function as independent contractors and are also not “Employees” of the soccer club. There is case law where trainers were paid by teams and clubs without reporting these payments to the IRS and the IRS determined that the trainers were considered employees of the club and the club was deemed responsible for the payment of substantial amounts of employment related taxes. The POB Soccer Club has clear rules established around the engagement of trainers as independent contractors and the above procedures have been established in connection with those rules. To the extent that coaches engage trainers and opt to pay them directly without following those procedures, please understand that you expose yourself to personal liability for the payment of employment taxes should this activity be discovered. Trainers that accept payment directly from teams, which are not remitted via the above procedures, will have their club approval to be a trainer revoked by the club. Coaches promulgating such activity risk permanent suspension.
If there are any questions regarding these procedures, please do not hesitate to reach out to me directly either via e-mail or by calling my cell phone.
Good luck to everyone for the upcoming season!
Plainview-Old Bethpage Soccer Club