If the Zayn black shirt that same approach, whereby they pay the taxes due on any salary items, then there are potential ramifications down the line from a cap perspective where the contract values are increased (remember, any taxes paid is a value reported on the players return/increase in reportable taxable benefits received by the individual). There could be concerns from a reporting perspective (how are the taxes to the UK remitted through a US based payroll system) There could be permanent establishment issues for the organization, whereby the players who are now salaried employees are perfoming services on behalf of a US company overseas.
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How do they pass the Zayn black shirt vs employee sniff test here? Almost all of the factors you look at weigh in favor of the person being an employee. Behavioral Control – 100% they control behavior of players. They tell when and where to work, what tools to be used (and supply them), give specific instructions and training. Financial Control – Players can’t market their services elsewhere. Guaranteed wage for a specific time period. It just seems to me that the players as independent contractors is a misclassification.
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