As independent contractors, caddies must pay self-employment taxes and health care costs, even if it’s subsidized by the PGA Tour. What do top caddies make? Steve Williams is one of the most famous caddies in recent memory. He caddied for Greg Norman before spending 12 years caddying for Tiger Woods
Eldrick Tont "Tiger" Woods is an American professional golfer. He ranks second all-time in both men's major championships and PGA Tour wins and also holds numerous golf records. Woods is widely regarded as one of the greatest golfers in the history of the sport, and as one of t…
Do PGA Tour caddies pay their own expenses? Minister: In 99 percent of caddie cases, we pay all of our expenses. On a normal week, we have to fly to the event, get to the airport and rent a car. We stay in hotels or rented condos/ homes. We have daily meals and we normally pay for two of them. We usually eat one meal at the course.
The highest paid golf caddie is currently Jimmy Johnson, the caddie of Justin Thomas. Justin Thomas is one of those golfers who almost always finds his way to the top ten of an event. This helps to increase Johnson’s pay. If Johnson stays on this golf bag, he will likely end up a very wealthy man.
Well, their tax preparers do, anyway. Golf pros compete for prize money in multiple states, and those states expect to take their cut in taxes. This means that, in addition to their federal 1040s, players are supposed to file tax returns in each state where they play.
His caddie, Ricky Elliott, likely received about $200,000 of that amount — more than what 98% of Americans earn in a year, let alone a week. Golf is a lucrative sport for the top players on the PGA Tour.
Professionals' caddies, just like the golfers for whom they work, are self-employed, independent contractors responsible for paying their own expenses. This year, the PGA Tour began providing caddies with a health insurance subsidy for the first time.
A caddie on the PGA Tour receives a base salary — usually around $1,000 to $2,000 — to cover travel expenses. He will earn 5% of the winnings if his golfer finishes outside of the top 10 and 7% of the winnings for a top-10 finish. The caddie earns 10% of winnings when his golfer wins a tournament.
According to Golf Week, a caddie earns five to 10 percent of a professional golfer's winnings on top of his base salary. A caddie makes between $1,500 and $2,500 in base pay per week during golf tournaments, Forbes reports.
Caddies are frequently classified as independent contractors and not any wages when they are legally entitled to it. This usually violates the minimum wage and overtime laws. If you believe your employment rights at a golf club have been violated, you may have a valid wage and hour claim.
1. Jimmy Johnson. What is this? Jimmy Johnson is currently caddying for Justin Thomas, but he has a successful history on tour.
"If the player misses the cut, the caddie still has to get a paycheck because the caddie pays for all of his own expenses — airfare, hotel, car, food, all of it." "If the guy makes the cut, the standard is 10-7-5 — 10% for a win, 7% for a top 10, 5% for everything else," Collins said.
Rory SabbatiniRory Sabbatini Rather, he is almost universally reviled. He was not well-liked prior to a nasty split with his ex-wife, and her revelations about Sabbatini have done further damage to his reputation (a feat few thought possible). Consider this, via Golf Today: "Rory Sabbatini is the most hated man in golf.
With Phil taking home $2.16 million, that means his caddie - Phil's brother Tim - is likely in line for a $216,000 payout. As Collins explained, caddies also get a weekly salary negotiated with their player. Caddies can range from $1,500-$3,000 a week.
The exact reason for the split is unknown. But according to a few reports, there was a reason behind this incident. As Tiger was recovering from an injury in 2011, Steve Williams caddied for Adam Scott at the U.S. Open and Open Championship. Hence, probably Woods got upset about it and fired Steve from his job.
If you are caddy and an independent contractor, any money or tips that could be considered caddy wages which you earn from working at the golf club are taxed as self-employment income.
For an individual filer in this tax bracket, you would have an estimated average federal tax in 2018 of 12%. After a federal tax rate of 12% has been taken out, Golf Caddies could expect to have a take-home pay of $18,332/year, with each paycheck equaling approximately $764 *. * assuming bi-monthly pay period.
The caddie earning the largest payout at the 2022 Masters was Ted Scott, Scottie Scheffler's caddie. With the win, Scott stands to take home $270,000 of the nearly $1 million pot available to caddies that made the cut over the weekend.
Experienced players who take it upon themselves to calm down when the going gets tough or analyze each shot with a cool head, caddies become an invaluable part of the team they make up alongside the golfer.
Although every player/caddie agreement is different, high-level caddies’ salaries generally range between $1,500 and $3,000 per week of play. This is something that is negotiated between a caddy and a golfer.
The most money caddies can earn does not come from their fixed salary but their bonuses. The average of what the caddy receives on the course is distributed as follows:
Most caddies pay for their travel expenses; that is, they pay for their tickets themselves. And although this seems an injustice, the situation is favorable when compared to a few years ago.
Many people think that the caddy only serves to bring the golf clubs to the golfer. Still, in reality, on many occasions, this is practically the same person who protects the golfer from the public and is an important part of their equipment.
Their top bracket is 6 percent for earners making at least $10,000 in the state in a given year, meaning each player has to pay a 6 percent tax on their earnings as Augusta National pays $10,000 even to players missing the 36-hole cut.
The 2018 Masters winner will get $1,980,000 in prize money, and they'll have to pay $118,800 in state taxes to Georgia. However, they'll have an opportunity to write of the expenses of doing their job in Georgia, which would include transportation, accommodations and the like.
The only states without a state income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. The PGA Tour and its major tours under its umbrella do not have tournaments in Alaska, South Dakota or Wyoming.
Residents of New Hampshire and Tennessee do not pay state income tax but do have to pay on dividends and income from investments. At the federal level, prize money earned is treated like taxable income, meaning pro golfers are getting taxed at the normal income rates for their earnings, not against different rates like for capital gains.
Most states these days make tournaments withhold state taxes from players' winnings, says Jim Palsa, a CPA who handles taxes for a PGA Tour professional. Palsa gets a notice from the PGA Tour every month telling him how much the player made, and where.
Pros like Dustin Johnson (Florida), Jordan Spieth (Texas) and Ryan Moore (Nevada) can keep that state tax money for themselves. Most of us don't have the luxury of moving to another state or country to save on taxes, at least in mid-career.
Result: If you're mainly living off your retirement accounts, you're not paying a lot of state income tax. In Georgia, you won't owe tax on your Social Security income. And if you're 65 or older, you get an exemption on your first $65,000 of most other types of retirement income. That's $130,000 per married couple.
Alaska, Wyoming and Nevada do well across the board. But you'll notice that many other states get good marks for some taxpayers and terrible marks for others. Washington state, for example, is No. 11 for those making $150,000 a year.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming don't have state income taxes. Two more—Tennessee and New Hampshire—tax interest and dividends but not paychecks. Retirement advisers say it's fine to consider income taxes when deciding where to live. Just don't go crazy with it.
Still, no one should move anywhere for tax reasons without consulting a qualified expert first. "So much of this depends on what type of income you have and what you're going to be spending it on," Mengle says. "We recommend you go to a tax professional and have them work up an analysis for you specifically.".
Well, their tax preparers do, anyway. Golf pros compete for prize money in multiple states, and those states expect to take their cut in taxes. This means that, in addition to their federal 1040s, players are supposed to file tax returns in each state where they play.
Minister: In 99 percent of caddie cases, we pay all of our expenses. On a normal week, we have to fly to the event, get to the airport and rent a car. We stay in hotels or rented condos/ homes. We have daily meals and we normally pay for two of them. We usually eat one meal at the course.
What about international trips? That seems like a huge expense for caddie if a MC comes into play.
A golf caddy on the PGA Tour will make a weekly base salary and then a percentage of the player’s wins. If a golfer is able to win the tournament, the caddie will usually make 10% of the winnings. Certainly, this is some motivation for a golf caddie to help get their player to the winner’s circle.
There are so many different types of private golf courses and country club styles across the country. Caddying at one club could guarantee $150 per round, and at another, it may only be $75. Caddies need to find a spot that works for them and work to get to know the membership.
The highest-paid golf caddies are continually changing. Players that make a lot of money will end up paying their caddies, and therefore the list is ever changing. The highest paid golf caddie is currently Jimmy Johnson, the caddie of Justin Thomas.
Many caddies will pay their own expenses. When you watch golf on television, it’s easy to get caught up in all the money players make. However, there are so many players that you don’t see that are struggling week in and week out.
You can make a living as a caddie, and many are able to do so. The great thing about this is that you can make a living at a country club or on the PGA Tour. Obviously, the golfers on the PGA Tour will make quite a bit more money than those at a country club; however, the country club rates are often very fair.