WHAM13 - Search Results
The Super Bowl 'Jock Tax'
East Rutherford, N.J. -- Win or los,e players from both Super Bowl teams will get paid for playing in the big game.
And win or lose, those players will pay taxes to the State of New Jersey.
The so-called Jock Tax impacts all players, coaches, and staff with professional sports teams that work in the state of New Jersey. The tax is assessed based on the number of days out of your work year that you work and earn money in that state.
"Many states have this Jock Tax and it's all based on the number of days, the number of football-related days that these players are in that particular state, said Bruce Zicari, an accountant at The Bonadio Group.
Zicari helped 13WHAM News break down an example of how this works.
Players on the winning Super Bowl team take home a $92,000 game check and those on the losing team take home a $46,000 check. The State of New Jerseys tax rate for these earnings is 8.97%
There are formulas based on how much each player would pay in taxes if the only work they did in New Jersey was the seven days leading up to an including the Super Bowl.
If we take the case of Peyton Manning, quarterback for the Denver Broncos, that formula would also include at least two more days of work in the Garden State because the Broncos are scheduled to play the N.Y. Jets at MetLife Stadium during the 2014 NFL Season.
Mannings salary for the 2014 season is expected to be about $15 million and the State of New Jersey would seek income taxes for the days he spent in that state earning that money.
That means that Manning can expect to pay more than $60,000 in New Jersey State income taxes whether he wins or loses the Super Bowl.
Meaning, if Manning loses the Super Bowl, his $46,000 game check wont even be enough to cover his tax bill.