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Golf Course Volunteers

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Golf Course Volunteers

Postby Heng » Sun Dec 04, 2016 3:19 pm

Can volunteer golf course marshals receive free golf in lieu of payments and not be taxed?  If not, can they volunteer for a non-profit foundation that, in-part, offers golf marshal services for publicly-owned golf courses?

ANSWER: Seehttp://viewer.zoho.com/docs/lcYOt or which is a newspaper story describing a situation when the State

determined that organizations that promised "volunteers" gifts

over the value of $50 per quarter were subject to state wage

regulations for employees. That was an Oregon case but other

state laws are similar. That case was about a sports foundation's

"volunteers" being promised a season pass if they work roughly

two dozen days helping put on races at the ski area.

As to the IRS and State, if the golf event is run by a governmental entity or agency, the value may not be taxed, but otherwise would.  If it is run by a government agency let me know the state and I will respond further. I am asking, as the second part of your question mentioned "publicly-owned golf courses". Harvey Mechanic, Attorney at Law - [email protected]

---------- FOLLOW-UP ----------

Thanks so much for your quick response.  The state is California and we operate a municipal golf course owned by a public agency.
Heng
 
Posts: 50
Joined: Wed Feb 26, 2014 12:50 am

Golf Course Volunteers

Postby FIannan » Mon Dec 05, 2016 8:19 pm

Can volunteer golf course marshals receive free golf in lieu of payments and not be taxed?  If not, can they volunteer for a non-profit foundation that, in-part, offers golf marshal services for publicly-owned golf courses?

ANSWER: Seehttp://viewer.zoho.com/docs/lcYOt or which is a newspaper story describing a situation when the State

determined that organizations that promised "volunteers" gifts

over the value of $50 per quarter were subject to state wage

regulations for employees. That was an Oregon case but other

state laws are similar. That case was about a sports foundation's

"volunteers" being promised a season pass if they work roughly

two dozen days helping put on races at the ski area.

As to the IRS and State, if the golf event is run by a governmental entity or agency, the value may not be taxed, but otherwise would.  If it is run by a government agency let me know the state and I will respond further. I am asking, as the second part of your question mentioned "publicly-owned golf courses". Harvey Mechanic, Attorney at Law - [email protected]

---------- FOLLOW-UP ----------

Thanks so much for your quick response.  The state is California and we operate a municipal golf course owned by a public agency.
FIannan
 
Posts: 44
Joined: Fri Feb 21, 2014 9:44 am

Golf Course Volunteers

Postby Meredydd » Wed Dec 07, 2016 4:12 am

You are welcome.

See 29 C.F.R. § 553.106 for the Application of the Fair Labor Standards Act to Employees of State

and Local Governments    "(a) Volunteers may be paid expenses, reasonable benefits, a

nominal fee, or any combination thereof, for their service

without losing their status as volunteers [for purposes of the

minimum wage law]"

www.dol.gov/dol/allcfr/esa/title_29/Part_553/29CFR553.106.htm

Therefore, your marshalls may not be subject to minimum wage laws(if they are receiving only "reasonable benefits". ...Wage and Hour Opinion Letter FLSA2005-51 contains a discussion

of what constitutes a nominal fee for determining an individual's

volunteer status.  That opinion letter discusses the "economic

realities" test in the context of school systems and those

volunteering by assisting with activities, such as coaching

sports or sponsoring various clubs.  Specifically, that letter

states that when a public agency employee volunteers as a coach

or extracurricular advisor, the Department will presume the fee

paid is nominal as long as it does not exceed 20 percent of

what the public agency would otherwise pay to hire a full-time

coach or advisor for the same services.  This 20 percent rule is

derived from the FLSA and its implementing regulations.  See

Wage and Hour Opinion Letter FLSA2005-51(The FLSA uses a 20

percent test to assess whether something is insubstantial with

regard to prohibited driving on public roadways by employees who

are 17 years of age.).  A willingness to volunteer for 20 percent

of the prevailing wage for the job is also a likely indication of

the spirit of volunteerism contemplated."

www.dol.gov/DOL/allcfr/ESA/Title_29/Part_553/29CFR553.106.htm However, the value of the benefits received would be taxable as compensation if the marshalls expected the benefits in exchange for their work. http://snipurl.com/toms4  explains that "de minimis" benefits need not be accounted for under the IRS employment tax provisions as long as the marshalls are employees and not independent contractors. As the IRS writes at:

www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf on page 72-73

(takes a while to load as it is a 91 page pdf file):

--start of excerpt  ---

The use of the term "volunteer" generally has no significance in

applying the tax law....

A volunteer is an employee if an entity has the right to direct

and control the volunteer's performance, not only as to the

results to be accomplished, but also as to the methods by which

the results are accomplished.  It is the "right" to control, even

if the entity does not exercise the right, that is important.

Many factors in an employment relationship have to be considered

before a decision can be made as to whether the entity has the

right to direct and  control.

If an entity does not retain the right to direct and control the

details and means of performing the work, the volunteer worker is

not an employee.

--end of excerpt  ---

On pdf page 13 you will see the IRS discussion as to de minimus(the ballpark estimate would be around $100). Harvey Mechanic, Attorney at Law - [email protected]  
Meredydd
 
Posts: 39
Joined: Thu Mar 20, 2014 5:50 pm


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