Tax Implications for Athletic Trainers and Interstate Compact

Athletic Training Tax Implications and the Interstate Work

A lot of ATs likely think about the interstate compact as:

“Now I can legally work in multiple states easier.”

But they may not realize:

“Working in multiple states can also create payroll, tax filing, and recordkeeping obligations.”

This becomes especially problematic because many PRN/event-based AT jobs are:

▪️ Short duration,

▪️Last minute,

▪️Part-time,

▪️Contractor-based,

▪️and spread across many states over a year.

An AT might:

➡️ cover a tournament in Nevada,

➡️ a camp in California,

➡️ a showcase in Texas,

➡️ and a championship in Florida,

without realizing:

⚠️ some of those states may require nonresident tax filings,

⚠️ some may require employer withholding from the first dollar earned,

⚠️ and some have thresholds that are very low.

Many healthcare professionals never receive education on:

⛔ multi-state taxation,

⛔nexus,

⛔nonresident filing,

⛔contractor tax liability,

⛔or payroll withholding laws.

That creates several risks for the AT:

💥unexpected tax bills,

💥penalties/interest,

💥underpayment issues,

💥confusion over 1099 vs W-2 classification,

💥inability to properly deduct travel expenses,

💥or failure to file in required states.

For staffing/event companies

Companies staffing nationwide events may also unknowingly create:

☣️ payroll withholding violations,

☣️ workers compensation issues,

☣️ unemployment insurance issues,

☣️ state labor law exposure,

☣️ and permanent business nexus in states they repeatedly operate in.

This is especially relevant in athletic training because the industry historically evolved more like:

▪️ Per diem staffing,

▪️ Relationship-based contracting,

▪️ and event medicine,

❌ rather than highly structured national healthcare systems.

The interstate compact may unintentionally accelerate the collision between:

▪️ healthcare regulation,

▪️ gig economy practices,

▪️ labor law,

▪️ and tax compliance.

One of the biggest blind spots is that many ATs assume:

“I’m only there for a weekend, so it doesn’t matter.”

But some states technically tax income earned from the first day worked there.

For example:

🌎 New York is known for aggressive nonresident income sourcing.

🌎 California also closely tracks nonresident work income.

Meanwhile states like:

TX, FL, AK, NV, NH, SD, TN, WA, and WY ➡️ have no state income tax.

So the compact could eventually force the profession to have more conversations about:

▪️ employment classification

▪️ standardized payroll practices

▪️ travel documentation

▪️ compliance education

▪️ and operational infrastructure for multi-state healthcare staffing.

That is something many professions discovered only after interstate mobility became common.

DISCLAIMER - Not legal or tax advice. Every state has different laws and requirements. Please seek a tax professional for more support and information.