@Empirical Cane is pretty much right, but those thresholds vary state to state. I’ll use Georgia as an example. State taxes are about 6% starting at $7k for singles. But as mentioned, this is contingent on income being reported. I’d guess a lot of these guys will be 1099 independent contractors so it’s going to largely be on them, though what they report will have to link to the companies filings.
I hope these schools have good procedures and systems in place to make sure kids are withholding or saving for taxes or they can wind up getting themselves in trouble. These sponsorships are going to be pretty **** public and are going to somewhat pull the curtain back on the under the table payments not being reported. I’ve said this before and I’ll say it again - this is going to be a MESS.
This reminds me of an old Miami story. Years back the maitre d at Joe’s was getting absurd amounts from people for their preferred table, waiter, skip the line, etc. in handshakes when people would put their names down. He wasn’t reporting any of it. The IRS wound up sending in agents to put their names down and wait, and come up with an estimate for the amount he was getting in gladhands, then assessed him taxes going years back.