While all-star athletes compete for championships on the field, their franchises’ HR teams deal with intense tax challenges behind the scenes.
Talent, coaching and performance play a part in building a dynasty. But it also needs another vital component: professional sports tax compliance. Without it, even legendary teams limit their success and forfeit profits to preventable issues.
So how do pro sports franchises avoid noncompliance and its steep penalties? HR pros need reliable tools to keep costs down and ensure accuracy. For them, success depends on a reliable, single HR software like Paycom to simplify tax management and boost their company’s bottom line.
Here are just 10 ways Paycom equips pro sports franchises with what they need to ensure tax compliance.
1. Automated tax calculations
Think of Paycom as the ultimate compliance resource for HR. It automates calculations and takes the guesswork out of federal, state and local taxes for:
- players
- coaches
- staff
- temp workers
- contractors
- and more
Paycom’s tax management tools ensure timely and accurate filings — no matter the employee.
2. Multistate tax management
National sports teams never stay in one place. Sure, they have a stadium to call home, but the business they conduct on the road is just as important from a compliance perspective. And each state the franchise plays in has its own taxes for:
- income
- purchases
- operations
- and more
In fact, the jock tax of certain cities specifically applies to nonresidents who earn money there — such as pro sports teams. Paycom makes multistate compliance with this and other taxes easier by:
- staying up to date with tax codes
- minimizing the risk of errors with a seamless data flow
- using clear dashboards and reporting for agile reviews and responses
3. Contract and bonus taxation
A player’s contract can be wrapped up in intricate variables — all posing unique compliance challenges. And between bonuses, endorsements and fiercely negotiated salaries, state tax departments have plenty of reasons to hone in on pro athletes’ earnings.
Paycom easily addresses the tax implications of these contracts with concise reporting tools and automated withholding. After all, securing a future icon is a big enough ordeal. Paycom ensures franchises thrive with spotless compliance.
4. Compliance reporting
Regardless of how well a team plays, tax season inevitably raises its own headaches — at least without tech to simplify it. Paycom streamlines compliance management and reporting by autopopulating and filing certain tax documents, like:
- W-2s
- 1099s
- I-9
- and more
Plus, Paycom accomplishes this in a truly single software. This means a franchise’s HR team doesn’t have to log into separate systems — each with their own passwords — to monitor and manage taxes. While their athletes focus on victory, HR knocks off data errors and redundant tasks.
5. Tax credits and incentives
Like other industries, pro sports teams can earn tax credits and other state and federal incentives. Unfortunately, locking down something like the Employee Retention Credit doesn’t happen automatically. Franchises’ HR teams must apply and follow up despite all their other duties.
But Paycom’s reporting and analytics tools automatically identify these opportunities, securing crucial savings for a franchise’s bottom line.
6. Employee Self-Service® for tax forms
It can be challenging to stay organized on the road to victory. That’s why Paycom’s Employee Self-Service tool empowers players and staff to easily access the tax documents that matter most anytime, anywhere.
And your people don’t have to needlessly ask HR for documents. This reduces administrative tasks and assures everyone in the organization has exactly what they need to correctly file their taxes. It’s a rare win-win HR pros can celebrate year after year.
7. Electronic filing
Let’s face it: No one aces tax season with paper-based submissions. Paycom addresses an error-prone process with completely electronic filing. This streamlines tax management for employers and employees alike by:
- simplifying the process
- eliminating data reentry
- reducing errors
- ensuring tax documents quickly reach the IRS and local tax agencies
8. Real-time tax updates
The tax world always evolves. Paycom helps franchises navigate it by automatically updating based on the latest tax regulations.
And it doesn’t end with taxes. Paycom’s Government and Compliance tool monitors changes to most relevant employment legislation, including:
9. Mobile accessibility
We understand compliance demands agility. Paycom’s mobile app allows teams to manage tax-related tasks wherever they are. It lets players and staff view, update and verify their tax info quickly, conveniently and securely.
And if they do encounter an issue, they can pose questions just as fast. Paycom’s Ask Here tool takes the guesswork out of organizing and routing employee concerns. It even directs those inquiries to the ideal person to answer them in your organization.
10. Data security and privacy
For Paycom, your success is our success. We know your team’s tax data is important — and we don’t cut corners when it comes to security. This is proven by the security certifications we maintain, including:
- ISO 9001
- ISO 22301
- ISO 27001
- SOC 2
We also protect your data with our 24/7 security command center and multilevel user logins with customized access and audit trails. Paycom keeps employee data confidential, so franchises like yours can focus on their legacy — not setbacks spurred by breaches.
Professional sports tax compliance can be a tall order, but it’s easier to overcome with Paycom in your corner. We take care of the heavy lifting by:
- automating tax calculations
- simplifying compliance reporting
- offering real-time updates
This allows your franchise to focus on what it does best: winning championships, electrifying fans and growing its legacy.
Learn how Paycom helps professional sports franchises win by engaging employees and overcoming complex compliance challenges.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.