Three Musketeers Payment Plan
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efon...@gmail.com
Jan 7, 2008, 9:10:30 PM1/7/08
to Android Challenge
Thank you for putting this on and investing real dollars in the
community. Our team has 4 people and we have decided to split the
destined prize money equally. Struggling with math, I get a net of
about $3000 after federal taxes and a taxed even distribution to other
members at the 28% rate. If Google encouraged an even split between
members by allowing 'even split' as a payment option, the people doing
the work would recieve a 50% pay raise or $4,500 each. [This assumes a
flat tax rate on income with no deductions.]
Adding the simple even split payment selection option to the form has
an equivalent value of 5 million Google dollars of incentive to the
Android challenge. That is 50% more prize money for the people doing
the work at no substantial cost to Google.
If there are secrets to getting more of the money to folks doing the
work, I would like to do that, but I cannot violate tax law in any
way.
PS: The math may not be spot on, but it is directionally correct.
community. Our team has 4 people and we have decided to split the
destined prize money equally. Struggling with math, I get a net of
about $3000 after federal taxes and a taxed even distribution to other
members at the 28% rate. If Google encouraged an even split between
members by allowing 'even split' as a payment option, the people doing
the work would recieve a 50% pay raise or $4,500 each. [This assumes a
flat tax rate on income with no deductions.]
Adding the simple even split payment selection option to the form has
an equivalent value of 5 million Google dollars of incentive to the
Android challenge. That is 50% more prize money for the people doing
the work at no substantial cost to Google.
If there are secrets to getting more of the money to folks doing the
work, I would like to do that, but I cannot violate tax law in any
way.
PS: The math may not be spot on, but it is directionally correct.
Shane Isbell
Jan 7, 2008, 10:01:29 PM1/7/08
to android-...@googlegroups.com
+1
Shane
Peli
Jan 8, 2008, 4:41:55 AM1/8/08
to Android Challenge
Hi,
as suggested elsewhere (
http://groups.google.com/group/android-challenge/browse_frm/thread/c48a4b84076a6e61/4dd4babae353e078?lnk=gst&q=llc#4dd4babae353e078
) if you are US resident, you could take into consideration forming an
LLC.
This would allow pass-through taxation, as I understand (avoid double
taxation), but I am far from being a lawyer.
Additionally, as far as I understand, you have complete freedom to
change the people behind your team, to add more if desired after round
1 of the competition, since only one person has to register for the
business entity. Google does not know who and how many people worked
in round 1, and does not know who worked in round 2.
I know, it sounds completely unfair against groups of individuals or
open source projects who do not want to (or can not) from a business
entity.
Correct me here, if I am wrong.
Peli
as suggested elsewhere (
http://groups.google.com/group/android-challenge/browse_frm/thread/c48a4b84076a6e61/4dd4babae353e078?lnk=gst&q=llc#4dd4babae353e078
) if you are US resident, you could take into consideration forming an
LLC.
This would allow pass-through taxation, as I understand (avoid double
taxation), but I am far from being a lawyer.
Additionally, as far as I understand, you have complete freedom to
change the people behind your team, to add more if desired after round
1 of the competition, since only one person has to register for the
business entity. Google does not know who and how many people worked
in round 1, and does not know who worked in round 2.
I know, it sounds completely unfair against groups of individuals or
open source projects who do not want to (or can not) from a business
entity.
Correct me here, if I am wrong.
Peli
Dan Morrill
Jan 8, 2008, 10:07:02 PM1/8/08
to android-...@googlegroups.com
Hello, everyone!
I just got word back from our legal team that we expect to be able to do this.
Specifically, if a team is awarded a prize, we'll be able to give the team captain (who filled out the form) the option of having us either give the whole prize to him or her to distribute, or divide evenly where each team member gets 1/x of the prize. However, teams will have to pick one of those two options: we can't let teams specify specific amounts for each member. Either the team captain gets it all to distribute, or each team member gets an equal share.
This gives teams who want to be able to control the flexibility of custom payment amounts the ability to do so, and also gives teams that want to split evenly a way to do that as well.
We'll figure out specifically how this will work, and update the ADC submission site in the near future.
- Dan
I just got word back from our legal team that we expect to be able to do this.
Specifically, if a team is awarded a prize, we'll be able to give the team captain (who filled out the form) the option of having us either give the whole prize to him or her to distribute, or divide evenly where each team member gets 1/x of the prize. However, teams will have to pick one of those two options: we can't let teams specify specific amounts for each member. Either the team captain gets it all to distribute, or each team member gets an equal share.
This gives teams who want to be able to control the flexibility of custom payment amounts the ability to do so, and also gives teams that want to split evenly a way to do that as well.
We'll figure out specifically how this will work, and update the ADC submission site in the near future.
- Dan
efon...@gmail.com
Jan 9, 2008, 12:23:44 AM1/9/08
to Android Challenge
Thank you. Wow!
On Jan 8, 9:07 pm, "Dan Morrill" <morri...@google.com> wrote:
> Hello, everyone!
>
> I just got word back from our legal team that we expect to be able to do
> this.
>
> Specifically, if a team is awarded a prize, we'll be able to give the team
> captain (who filled out the form) the option of having us either give the
> whole prize to him or her to distribute, or divide evenly where each team
> member gets 1/x of the prize. However, teams will have to pick one of
> those two options: we can't let teams specify specific amounts for each
> member. Either the team captain gets it all to distribute, or each team
> member gets an equal share.
>
> This gives teams who want to be able to control the flexibility of custom
> payment amounts the ability to do so, and also gives teams that want to
> split evenly a way to do that as well.
>
> We'll figure out specifically how this will work, and update the ADC
> submission site in the near future.
>
> - Dan
>
>
> - Show quoted text -
On Jan 8, 9:07 pm, "Dan Morrill" <morri...@google.com> wrote:
> Hello, everyone!
>
> I just got word back from our legal team that we expect to be able to do
> this.
>
> Specifically, if a team is awarded a prize, we'll be able to give the team
> captain (who filled out the form) the option of having us either give the
> whole prize to him or her to distribute, or divide evenly where each team
> member gets 1/x of the prize. However, teams will have to pick one of
> those two options: we can't let teams specify specific amounts for each
> member. Either the team captain gets it all to distribute, or each team
> member gets an equal share.
>
> This gives teams who want to be able to control the flexibility of custom
> payment amounts the ability to do so, and also gives teams that want to
> split evenly a way to do that as well.
>
> We'll figure out specifically how this will work, and update the ADC
> submission site in the near future.
>
> - Dan
>
> > On Jan 7, 2008 6:10 PM, efont...@gmail.com <efont...@gmail.com> wrote:
>
> > > Thank you for putting this on and investing real dollars in the
> > > community. Our team has 4 people and we have decided to split the
> > > destined prize money equally. Struggling with math, I get a net of
> > > about $3000 after federal taxes and a taxed even distribution to other
> > > members at the 28% rate. If Google encouraged an even split between
> > > members by allowing 'even split' as a payment option, the people doing
> > > the work would recieve a 50% pay raise or $4,500 each. [This assumes a
> > > flat tax rate on income with no deductions.]
>
> > > Adding the simple even split payment selection option to the form has
> > > an equivalent value of 5 million Google dollars of incentive to the
> > > Android challenge. That is 50% more prize money for the people doing
> > > the work at no substantial cost to Google.
>
> > > If there are secrets to getting more of the money to folks doing the
> > > work, I would like to do that, but I cannot violate tax law in any
> > > way.
>
> > > PS: The math may not be spot on, but it is directionally correct.- Hide quoted text -
>
> > > Thank you for putting this on and investing real dollars in the
> > > community. Our team has 4 people and we have decided to split the
> > > destined prize money equally. Struggling with math, I get a net of
> > > about $3000 after federal taxes and a taxed even distribution to other
> > > members at the 28% rate. If Google encouraged an even split between
> > > members by allowing 'even split' as a payment option, the people doing
> > > the work would recieve a 50% pay raise or $4,500 each. [This assumes a
> > > flat tax rate on income with no deductions.]
>
> > > Adding the simple even split payment selection option to the form has
> > > an equivalent value of 5 million Google dollars of incentive to the
> > > Android challenge. That is 50% more prize money for the people doing
> > > the work at no substantial cost to Google.
>
> > > If there are secrets to getting more of the money to folks doing the
> > > work, I would like to do that, but I cannot violate tax law in any
> > > way.
>
>
> - Show quoted text -
xtrawurst
Jan 9, 2008, 1:29:55 AM1/9/08
to Android Challenge
Great!
Peli
Jan 9, 2008, 3:21:59 AM1/9/08
to Android Challenge
Hi Dan,
This is indeed a great move and many teams will be happy about that!
> we can't let teams specify specific amounts for each
> member. Either the team captain gets it all to distribute, or each team
> member gets an equal share.
I just wonder, what are the reasons that prevent the possibility to
specify amounts for each member? If two members agreed at submission
time to split, say, 25% and 75% according to the different amount of
work they did, why should this technically be more difficult to handle
than a 50% - 50% split? (with the option to re-adjust this ratio upon
resubmission in round 2, not changing the people involved in a team).
Peli
This is indeed a great move and many teams will be happy about that!
> we can't let teams specify specific amounts for each
> member. Either the team captain gets it all to distribute, or each team
> member gets an equal share.
specify amounts for each member? If two members agreed at submission
time to split, say, 25% and 75% according to the different amount of
work they did, why should this technically be more difficult to handle
than a 50% - 50% split? (with the option to re-adjust this ratio upon
resubmission in round 2, not changing the people involved in a team).
Peli
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