As an e-sports athlete, you may already belong to a professional team or may be considering joining a team. If so, you may benefit from understanding the role Battle Royale Esports PUBG athlete bookkeeping, accounting, and tax planning play in the money you may earn.
Battle Royale Esports PUBG Athletes Tax Planning for Team Salaries
The money you may earn from contracts with major e-sports organizations could be in addition to what you earn playing tournaments or from endorsements. Your Battle Royale Esports PUBG bookkeeping style may vary, depending on if you are classified as an employee of the team or if you are an independent contractor.
If you are an independent contractor, you may have the responsibility for paying all taxes. So your bookkeeping may include withholdings for federal and state taxes. If tournaments take you outside of the United States, your CPA may need to factor in the tax laws of the countries you play in.
If you are an employee, it may fall upon the team that employs you to withhold federal, state, and international taxes. At the end of the calendar year, you will receive a W-2 form outlining the money you earned and the taxes that were withheld. This information can be passed on to your CPA and used as a part of your tax planning.
Properly categorizing diverse sources of income and planning a tax strategy for these earnings can be challenging. Fusion CPA has a team of Battle Royale Esports PUBG accountants who understand the unique taxation issues e-sports athletes face. We can help clarify these issues for you.
Are You an Employee or an Independent Contractor?
The IRS uses three general criteria to determine if a person is an employee or if they are an independent contractor.
1) Behavioral control. This is the amount of control you have over the work you do, the number of hours you spend working, and how the work is completed. If your team owner dictates these things, you are likely an employee. However, if you have control over these things, you are likely an independent contractor.
2) Financial control. If you have a guaranteed salary or a regular wage from your team, you are likely an employee. However, if you get paid per tournament or per project, you may be an independent contractor.
3) Type of relationship. If your team gives you sick days, health insurance, or other services, you may be an employee. Independent contractors are usually brought on for the short term to do a particular project and may be re-contracted when similar work arises.
It’s important that you clearly understand the nature of your relationship with your team and clearly transmit this information to your Battle Royale Esports PUBG accountant. This may impact your tax planning.
Tax Planning Insight from Financial Advisers
When you became a Battle Royale Esports PUBG athlete, you may not have realized the amount of work that went into bookkeeping, tax planning, and accounting. Fortunately, Fusion CPA offers Battle Royale Esports PUBG athletes CFO business advisory services. Our goal is to take the headache out of bookkeeping and accounting and give you more time to focus on improving your craft.
We offer to oversee your bookkeeping, help you stay organized, layout tax prep strategies to save you money on your taxes, and provide sales tax expertise, regardless of how many states your career has you earning money in. Our Battle Royale Esports PUBG athlete CFO business advisory service offers an integrated, disciplined approach to tax planning. You may benefit from partnering with financial advisers who strive to help you keep more of your winnings in your pocket. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.