Compensation and Payroll Taxes
What is Allowed
Compensation (wages) paid for the percentage of time spent on activities directly related to the conduct of gambling is an allowable expense.
Rate of Pay and Benefits
It’s up to each organization to determine the rate of pay, frequency of payment, and benefits for its employees.
Percentage Allowed
Some organizations have employees who spend only a portion of their work time on activities directly related to the conduct of charitable gambling.
Compensation Restrictions
Compensation may not be paid to a lessor, lessor’s immediate family, or lessor’s employees for the conduct of lawful gambling.
Workers' Comp. Insurance
General information regarding workers' compensation insurance for charitable gambling employees.
Records Required
Federal W-4 and I-9 information, payroll timesheets, and payroll register.
Pay By Check or Electronically
If a payroll processing firm prepares the payroll, the authorization for the electronic transfer to the payroll processing firm must be signed by at least two organization members.
Cash Basis
Compensation is reported on a cash basis. This means that the wages, benefits, or payroll taxes are reported in the month that they were actually paid, not in the month earned or accrued.