News

Last Update :9/6/2018

Independent Contractors Are You in Compliance?

Ronnie Miles

Sep 5, 2018 10:13 AM

Ronnie Miles

NGCOA Members,

As you all know the golf industry has long relied on using contract employees to deliver unique and special services offered to our customers. The scope of these services vary widely from one golf course to another and as such there are no standard agreements. This has left the golf industry vulnerable to state regulators who perform labor and tax audits.

Recently a golf course in Michigan underwent an audit from the Department of Treasury and they found the course to be in violation of the Fair Labor Standards Act (FLSA) governing employer-employee relationship. They found the contract agreement with the teaching golf professionals did not meet the test for determining whether an individual was an independent contractor or an employee. Because this test has been determined to be subjective, the golf course owner has challenged this finding and feels confident the finding will be overturned.

Golf course owners and operators are encouraged to review all your existing service arrangements with contract employees. NGCOA addressed this critical issue in a paper released earlier this year.  The most important question an owner or operator must ask when considering this options is, "will this person work for my business or simply provide a service?" This sounds like an easy question to answer, but the Department of Labor and IRS have added a new litmus test for these positions. It's called the "economic realities test". The PGA Employment Services Department also published guidance to their members addressing this important labor issue.

Auditors are finding that it is immaterial in determining there is an employment relationship based on the place where work is performed, an absence of a formal agreement, or whether an alleged independent contractor is licensed by the State or local government. Owners and operators that choose to hire contractors to perform specialty services need to closely review this guidance. Also, review your state labor laws to make sure you are not found to have violated the FLSA which will result in fines and payments to recover unpaid payroll taxes and social security payments. These fines can go as far back as the date of the initial agreement with the independent contractor began.

NGCOA also encourages its members to review all existing independent contracts in place, perform your own analysis and take appropriate steps to ensure full compliance. Members may contact Ronnie Miles, rmiles@ngcoa.org  for additional information or assistance with any compliance questions.

------------------------------
Ronnie Miles
Director of Advocacy
NGCOA
Daniel Island SC
[843-471-2714]
------------------------------



[ More News ]


Join NGCOA Mid-Atlantic - Great Membership Benefits!

Summer Issue of Mid-Atlantic Golf Business Newsletter Joint with North Carolina GCOA - Click Here to Read!

Golf Property Analysts - Private Club Planning, Golf as it was meant to be, Is It Time to Sell?

A Consumer/Culture Based Approach to Private Club Planning

Transparency at Private Clubs

The Golf Pro Crisis & Its Impact on Clubs

Golf Property Analysts - Your Club's Tax Assessment

Hilda Allen - the source for golf course sales and advising owners

NGCOA Mid-Atlantic Annual Meeting Set for Nov. 2 at Independence GC in Richmond

Fairfax County Park Authority seeks Golf Course General Manager

Announcing Facility BMP Virtual Workshop and Prize Contest

Another Beautiful Listing by Hilda Allen Real Estate!

Just Listed by Hilda Allen - The Frog GC in Georgia, a Fazio Design

National Golf Day 2022 - Information and Registration

Mattaponi Springs Golf Club in Ruther Glen, VA Seeks General Manager

Larry's Interview on TurfNet Renovation report Podcast

Golf Leagues - A Lightspeed Guide to Growing Business

Register your course for Women's Golf Day - June 7th

Download the Pellucid Presentation at the Annual Meeting

Golf Property Analysts - Time to Sell?

New Listings and Recent Sales from Hilda Allen Real Estate

Hanover Golf Club sold to unidentified local buyer

Club Master Planning - A Market Based Approach

January Abstract OtR: '21 Sol Scorecard is 6 birdies, 2 pars!

Damon DeVito Named the 2021 Mid-Atlantic Golf Leader

Golf Course Acquisition Opportunity - Maryland - For Sale By Auction

Sep Weather, Aug Util; steady, solid results against strong "20 comps"

Employee Retention Tax Credit May Save You Thousands $

Glenwood Golf Course redevelopment gets planning commission approval

Google's New "Local" Ads Provide Big Advantages to Golf Courses

The Appraisal Journal - Valuation of Private Clubs for Tax Assessments

Morning Read and Sports Illustrated Announce Editorial Partnership

Partner News: Richard Mandell Architecture "Form and Function" Summer 2021

Women's Golf Day 2021 Sets New Global Records

Is it Time to Review Your Golf Property Tax Assessment?

 



Join Our Email List