scrummymustard":3degjhys said:
... for professional athletes, California is unfortunately still going to get their income tax as they go on the duty days method for income allocation, not the weekly pay check they receive.
This is not a performance bonus, which falls under the "duty day method." As long as the bonus is 100% guaranteed, then he won't have to pay the California tax. If any portion of the bonus is contingent upon him playing games in California, then they get their taxes.
Since he gets this money even if he retires, or is traded, the day after the check is cut, this money does not fall under the "duty day method."
Point I'm making though, is that this costs Russ exactly nothing, and may actually pay him slightly more.
Scorpion05":3degjhys said:
The only caveat to that, if I'm not mistaken is that he gets less in "take home pay." Since NFL players are paid on a 17 week basis, based on their base salary. So Russell gets more withheld in taxes and will have to sort all that out come tax time
As a high income earner, we can safely assume that he has essentially 39.6% withheld from every pay check. We can also safely assume that they will withhold 39.6% of this bonus.
For this bonus, he will get a check for $3.624 million, with the rest going to the IRS. We can quickly calculate the break even point, as his takehome pay, after withholding, is $402,666.87 each week (ignoring state income tax obligations). $3.624 million divided by $402,666.87 gives us exactly 9 weeks, as expected.
So, it would take 9 weeks of weekly pay to make what he will take home with the one check.