azgreg
The Tour, however, did not account for the state taxes each player would owe, or provide any tax or financial guidance about the new program. The players who did not reach $500,000 in earnings received no communication about the Tour paying state taxes on their behalf until the phone call before Christmas.
On one hand, I understand the players' frustrations. They should've been made well aware of their tax obligation so they could plan that out accordingly. On the other hand, who thinks they're going to get a pay advance without having to assume the associated tax burden?
We lived in the UK for two years (2012-2014) and part of my wife's salary during that time was diverted to our bank back in the US, but a bigger portion was dedicated to the UK. Certain tax laws have changed over the years that complicated how that all works out and the appropriated tax liabilities. Even with a qualified CPA it was a nightmare. We were still receiving (bogus) tax bills from the UK as recently as 2021. Knock on wood, we haven't received any more communications from the HMRC since, so I think it's finally squared away.
It would seem that the first order of business for a tour rookie would be to secure the services of a knowledgeable CPA. I'm guessing that most do, but probably not the younger guys just starting out.
