Often the term “salary cap” is mentioned regarding the retention on the team of a particular sports player (mostly football). What is a salary cap, and how can it affect the career of a sports player?

A salary cap is the limit set on how much a sports team can spend on players’ pay.

A team member’s salary demand or current pay can push a team’s salary total beyond the cap, forcing the team to trade him or other players to stay below the limit and avoid league penalties.

A salary cap is meant to achieve competitive balance in a professional sports league by ensuring that some teams can’t wildly outspend the others to acquire the best players.

The National Football League, the National Basketball Association and the National Hockey League all have cap restriction systems, though their details vary.

NFL salary caps since 2003, according to CBS Sports:

2003: $75 million.

2004: $80.58 million.

2005: $85.5 million.

2006: $102 million.

2007: $109 million.

2008: $116 million.

2009: $123 million.

2010: uncapped.

2011: $120 million.

2012: $120.6 million.

2013: $123 million.

2014: $133 million.

2015: 143.28 million.

2016: $150 million-$153 million (projection).

Online: www.spotrac.com

 

IRS booklet explains tax law on benefits

I am a representative payee for Social Security for one of my relatives.

When we fill out the payee report at the end of the year, if the recipient has income left over it counts against them in the following year. Why?

My husband receives Social Security benefits, and it doesn’t count against him.

“At the beginning of each year the Social Security Administration mails a Social Security Benefit Statement SSA-1099 tax form to the representative payees of beneficiaries receiving Social Security benefits,” agency spokeswoman Heather Nagy wrote in an email.

“The form shows the total amount of benefits paid to beneficiaries in the previous year. Representative payees should give the statement to the beneficiaries’ tax preparer to determine if any taxes are due on the benefits.”

Nagy referred The Informer to IRS Publication 915, as did Internal Revenue Service spokeswoman Lea Crusberg, who cited privacy laws in saying that she “must decline to comment on general questions as answers could be applied to that specific taxpayer.”

For more information on benefits, call the Social Security Administration at 877-409-8431; the TTY number is 800-325-0778. For more information on tax laws, call the IRS at 433-1362.

Online: www.socialsecurity.gov; www.irs.gov.

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The Informer answers questions from readers each Sunday, Monday and Wednesday. It is researched and written by Andrew Perzo, an American Press staff writer. To ask a question, call 494-4098 and leave voice mail, or email informer@americanpress.com.