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- Oct 4, 2013
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Starting in calendar year 2018, 501(c)(3) organizations (I.e. the University of Miami) now has to pay a 21% excise tax on compensation in excess of $1m of certain employees. So Manny Diaz, for example, if he makes $2m, UM will have to pay 21% of the amount in excess of $1m, or $210k. However, they also have to now pay 21% of parachute payments if you are to fire one of these people, provided it meets certain criteria which we likely would. So our buyout will be 21% more expensive in addition to paying 21% on the new coach’s salary.
Here is another fun quirk to this law... it may not apply to state universities that have dual status as 501(c)(3) and government entities.
Here is another fun quirk to this law... it may not apply to state universities that have dual status as 501(c)(3) and government entities.
