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SOCCER GROUP FIGHTS RULING ON PAY ISSUE
State says referees and others need unemployment insurance
By Marie Rohde, Milwaukee JOURNAL SENTINEL www.jsonline.com
The Wisconsin Soccer Association has filed a lawsuit fighting a state decision that would require youth soccer clubs to have unemployment compensation for referees, coaches, and trainers, some of whom work only a few games a year.
Peter Mariahazy, president of the Wisconsin Soccer Association, said Thursday that he fears the ruling also could require clubs to deduct the whole range of taxes from an official's pay - state, local and Social Security taxes, and that many of his organization's clubs simply would not be able to comply with the requirement.
"It's extremely variable how much time they put in," Mariahazy said of the game officials. "Some work a few games a year, others work dozens of games."
Mariahazy said the ruling would affect 140 soccer clubs with more than 56,000 players in the state, it would also affect other sports clubs such as hockey, Little League baseball, and basketball leagues.
"It would be costly, but more importantly, it would detract from the mission of getting kids and their famillies involved in the sport," Mariahazy said. "For the most part, these are volunteer-run organizzations, and these requirements would detract from making it a positive experience for the players and their families."
During the season, hundreds of games are played in Wisconsin every week, and each has three or four officials, Mariahazy said. Often the official is paid by cash or check at the game site, he said.
The Wisconsin Soccer Association is the parent organization of the youth association.
Nancy Stolte, the interim executive director for the 7,000 =member Milwaukee Kickers, said officials for youth games are paid from $12 to $25 for each game.
"It would be pretty challenging, " Sotlte said of the prospect of witholding dedductions. "There are undereds of referees around the state, and trying to keep track of the appropriate taxes for them would really be an interesting procedure."
Once an official is certified, he or she can officiate at games anywhere in the state, she said. The Kickers are one of the few clubs that has a paid staff.
The Milwaukee Kickers club has had discussions with the state on the issue.
Mariahazy said the state Department of Workforce Development had conducted a routine audit of the Wisconsin Youth Soccer Association and determined that in late 2003 that the coaches, referees, and trainers met the state requirements to be considered an "employee". The Wisconsin Soccer Association argued that the individuals were "independent contractors," not employees.
In December 2006, Administrative Law Judge Daniel O. Wolter coducted a hearing on the unemployment compensation question and issued a decision the following May that concluded the referees were not employees, but that coaches and trainers were employees.
Both the soccer association and department were unhappy and appealed the decision to the state Labor and Industry Review Commission. The ruling stands, the soccer group will have to pay back unemployment contributions plus interest, and make future contributions.
Mariahazy declined to speculate on how a decision upholding the commission's decision would affect league sports but said it would be "onerous".
Mariahazy said he knew of only one other case in the country having to treat game officials as employees. In 2004, the IRS socked the Fairfield United Soccer Association of Connecticut with a $334,441 bill for back taxes and fines. Two years later, federal officials reduced the bill to $11,600 for the back taxes, and the club agreed to start witholding taxes for those coaches not employed by a professional coaching association.
In the lawsuit that will be heart by Milwaukee County Circuit Court Judge
Christopher Foley, the soccer group is asking that the administrative decision be reversed.
State says referees and others need unemployment insurance
By Marie Rohde, Milwaukee JOURNAL SENTINEL www.jsonline.com
The Wisconsin Soccer Association has filed a lawsuit fighting a state decision that would require youth soccer clubs to have unemployment compensation for referees, coaches, and trainers, some of whom work only a few games a year.
Peter Mariahazy, president of the Wisconsin Soccer Association, said Thursday that he fears the ruling also could require clubs to deduct the whole range of taxes from an official's pay - state, local and Social Security taxes, and that many of his organization's clubs simply would not be able to comply with the requirement.
"It's extremely variable how much time they put in," Mariahazy said of the game officials. "Some work a few games a year, others work dozens of games."
Mariahazy said the ruling would affect 140 soccer clubs with more than 56,000 players in the state, it would also affect other sports clubs such as hockey, Little League baseball, and basketball leagues.
"It would be costly, but more importantly, it would detract from the mission of getting kids and their famillies involved in the sport," Mariahazy said. "For the most part, these are volunteer-run organizzations, and these requirements would detract from making it a positive experience for the players and their families."
During the season, hundreds of games are played in Wisconsin every week, and each has three or four officials, Mariahazy said. Often the official is paid by cash or check at the game site, he said.
The Wisconsin Soccer Association is the parent organization of the youth association.
Nancy Stolte, the interim executive director for the 7,000 =member Milwaukee Kickers, said officials for youth games are paid from $12 to $25 for each game.
"It would be pretty challenging, " Sotlte said of the prospect of witholding dedductions. "There are undereds of referees around the state, and trying to keep track of the appropriate taxes for them would really be an interesting procedure."
Once an official is certified, he or she can officiate at games anywhere in the state, she said. The Kickers are one of the few clubs that has a paid staff.
The Milwaukee Kickers club has had discussions with the state on the issue.
Mariahazy said the state Department of Workforce Development had conducted a routine audit of the Wisconsin Youth Soccer Association and determined that in late 2003 that the coaches, referees, and trainers met the state requirements to be considered an "employee". The Wisconsin Soccer Association argued that the individuals were "independent contractors," not employees.
In December 2006, Administrative Law Judge Daniel O. Wolter coducted a hearing on the unemployment compensation question and issued a decision the following May that concluded the referees were not employees, but that coaches and trainers were employees.
Both the soccer association and department were unhappy and appealed the decision to the state Labor and Industry Review Commission. The ruling stands, the soccer group will have to pay back unemployment contributions plus interest, and make future contributions.
Mariahazy declined to speculate on how a decision upholding the commission's decision would affect league sports but said it would be "onerous".
Mariahazy said he knew of only one other case in the country having to treat game officials as employees. In 2004, the IRS socked the Fairfield United Soccer Association of Connecticut with a $334,441 bill for back taxes and fines. Two years later, federal officials reduced the bill to $11,600 for the back taxes, and the club agreed to start witholding taxes for those coaches not employed by a professional coaching association.
In the lawsuit that will be heart by Milwaukee County Circuit Court Judge
Christopher Foley, the soccer group is asking that the administrative decision be reversed.