Average Divemaster's Salary

[boulderjohn]

What I never understood when I was a DM here in Colorado is why they don't have different level of DM insurance for different levels of risk, just as they do with automobile insurance. A DM in Colorado does very little more than watch pool instruction and do refreshers and pool discover scubas, and those amount to a couple times a month. There is close to no risk whatsoever. I don't understand why such a person has to pay the same liability insurance premium as someone leading dives 5-6 days a week. It is close to the same for instruction--we don't do anything close to the business (or the risk of instructors) living next to an ocean.

---------- Post added March 26th, 2013 at 04:42 PM ----------

Sorry to do a partial hijack. . . . but let's say (Hypothetically speaking) you're a recreational diver with DM credentials (and an outside job). Can't you then write off the cost of all the pretty trinkets and "necessary upgrades"? I realize it doesn't make them free, but wholesale less 30% (or so) might make the sport a bit less expensive.

Anybody every heard of the IRS auditing a DM because they show a net loss for the year?

Lots of businesses show a net loss for a year, sometimes more than a few years. there is nothing illegal about it, and I am sure a lot of scuba instructors and DMs show losses. If you have an outside job and only do a little instructing or DM work on the side, it is probably pretty common.

However, if you have DM credentials but don't work as a DM in any way, then I don't think you can count those things as business expenses--you actually have to make an attempt to be profitable. If they suspect you are just trying to use tax deductions to help finance a hobby, then you very well might provoke an audit.

 

[Tigerman]

Came across this article just now.....wonder where their numbers came from (especially if it's an "average" then where are those DMs working that are at the top of the scale?) And according to them, DMs make more than Instructors...LOL

Salary

• The average salary of a divemaster, according to simplyhired.com is $38,000. If you work in a gear shop you can also earn commission from equipment sales.
  
  

Read more: The Average Divemaster's Salary | eHow.com The Average Divemaster's Salary | eHow.com​

And then another one of their articles states for dive instructors:

Average Salary

• According to simplyhired.com, the average salary for dive instructors in the United States is $36,000 a year. This amount varies tremendously, however, as most local dive shops hire only part time instructors, who may or may not fill in additional hours by working in the shop. Instructors are also generally paid on a per-student basis, which varies by level and course taught. A beginning Open Water instructor can expect to earn about $15,000 to $18,000 per year.
  
  
  

I see two major problems here to be honest..
The DM salary is not specified with location whereas the instructor salary is. Also I think the numbers seem way high, but more importantly has to be included tips - which is NOT part of your salary..
Your salary is your periodic pay, whereas the tip is "random" (and not given by your employer)

 

[-hh]

Sorry to do a partial hijack. . . . but let's say (Hypothetically speaking) you're a recreational diver with DM credentials (and an outside job). Can't you then write off the cost of all the pretty trinkets and "necessary upgrades"? I realize it doesn't make them free, but wholesale less 30% (or so) might make the sport a bit less expensive.

Anybody every heard of the IRS auditing a DM because they show a net loss for the year?

I'm sure that it has happened, since basically, what you're asking about is addressed in the IRS Tax rules for "Hobbies".

The simple summary is that you probably can offset the **hobby-only** income with its expenses, but you're not ever allowed to claim a hobby-based expense to reduce your non-hobby based income. In other words, if you make $50K from your day job and earn $1K as a DM but have $2K of DM-based expenses, the math is NOT:

$50K + ($1K - $2K) = $49K

...but is instead:

$50K + ($1K - $1K) = $50K

To get the full $2K deduction, you'll have to be able to pass all of the IRS requirements to have the DM job count as a real business instead of just a hobby, and these requirements are pretty stringent:

• You carry on the activity in a businesslike manner,
• The time and effort you put into the activity indicate you intend to make it profitable,
• You depend on the income for your livelihood,
• Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
• You change your methods of operation in an attempt to improve profitability,
• You (or your advisors) have the knowledge needed to carry on the activity as a successful business,
• You were successful in making a profit in similar activities in the past,
• The activity makes a profit in some years, and
• You can expect to make a future profit from the appreciation of the assets used in the activity.

IMO, part time DMs (& Instructors) are probably going to get tripped up by bullet #3, because there's usually a non-diving day job which makes the "income dependency" claim to be weak.


Finally, in getting back to the OP question, what's not obvious from the way that the income claim was being made was just how many hours of work was required...and the implications are to ask just how long the typical workday was: there's a big difference in benefits between earning $100/day from just working four hours on the 2-tank AM diveboat versus a "dawn to dusk" 12 hour day spent between working on the boat, then in the diveshop and finally in compressor & equipment rooms to earn the same $100...for this notional example, its a shift from $25/hr to $8/hr.


-hh

 

[TMHeimer]

boulderjohn, I understand your questioning liability insurance for DMs in different situations. I do very little each year, and so far only OW courses. There is always an instructor there. On the otherhand, regular dive "life" insurance companies seem to be very specific as to what kind of diving you do, how deep you go, how often. Why not the same for DM or even instructor liability?

 

[supergaijin]

I dont get it, where does the $300+ go for the tuition on most ow classes? ? The LDS? the instructor none for the DM's?

Here in the Maldives our PADI OW course is $325 + GST and SC taxes. One student alone will not even pay for the fixed costs of running the course, so we ask for a minimum of 2pax for this price.

Factored in to these 'fixed costs' is equipment cost to buy/maintain, compressor cost to buy/maintain, tank cost to buy/maintain, boat rental, 3 crew salaries, a 25% commission to the adjacent hotel (standard practice in Maldives), PADI materials and fees.... and I'm sure I'm forgetting a couple of things.

For inland operators that have a training pool... the costs of a pool are astronomical.

 

[genxweb]

I am usually negative. The shop covers my insurance. I get a 10% discount on gear and free air. Other then that I have never received anything though I was told we are suppose to get $25.00 per DSD or refresher but i have never seen any of that. We don't get free or discounted trips either. On some occasions we do get free quarry access.

 

[Bob DBF]

I was hunting around the web and although they were talking about recreational DM's, it seems to me they were using the salary of commercial DM's.

The Average Divemaster's Salary Things to Know As a Divemaster

Highest Level of Employment
Support activities for mining operations employ the highest number of divemasters (570) at an annual mean wage of $59,630. Heavy and civil engineering construction is the highest paying group at $66,100 annual mean wage, but ranks second in employment level. Utility system construction pays an annual mean wage of $65,700.

Highest Concentration of Employment
Heavy and civil engineering ranks first in the highest concentration of divemasters employed in the industry at 0.56 percent, and also claims the highest average mean annual wage at $66,100. Second highest concentration goes to support activities for mining at 0.21 percent, and an average mean annual wage of $59,630. Support for water transportation is a close third with 0.20 percent concentration and an annual mean wage of only $43,750.

Top Paying Industries
Heavy and civil engineering construction tops the list of highest paying industries at $66,100 annual mean wage. Following at second, third and fourth positions are utility system construction at $65,700, support activities for mining at $59,630, and a miscellaneous category of other support services at $56,230. Highway, street and bridge construction completes the list at a mean average wage of $52,860.

Top Paying States
The states with the top salaries are either bordered by an ocean or completely surrounded by water. On the East Coast, New Jersey and New York are ranked first and third in annual mean wage by state, with New Jersey at $79,010 and New York at $66,750. Two West Coast states, California and Washington, hold second and fourth positions, with California at $76,500 and Washington at $64,130. Hawaii completes the list at fifth place, with an average mean wage of $60,930.



Read more: Divemaster Pay Scale | eHow.com Divemaster Pay Scale | eHow.com

Bob
-----------------–----
I may be old, but I'm not dead yet.

 

[raftingtigger]

Sorry to do a partial hijack. . . . but let's say (Hypothetically speaking) you're a recreational diver with DM credentials (and an outside job). Can't you then write off the cost of all the pretty trinkets and "necessary upgrades"? I realize it doesn't make them free, but wholesale less 30% (or so) might make the sport a bit less expensive.

Anybody every heard of the IRS auditing a DM because they show a net loss for the year?

According to my tax preparer there are two types of businesses. 1. Hobby business and 2. profitable business (my terminology). For the Hobby business you make some money, but you are not really trying to make a living from it. You can deduct expenses up to but not exceeding the income for the year. Income is taxable. In a profitable business you are trying to have a going business - advertising, etc. You can deduct more than your income BUT 3 out of 5 years you must make a profit. I don't think I'm renewing my insurance this year....

This is all for the USA>

 

[They're]

He'll who cares about pay. If you love getting to dive everyday or weekends is good enough for me. I'd take the good discounts on gear.

 

[TMHeimer]

According to my tax preparer there are two types of businesses. 1. Hobby business and 2. profitable business (my terminology). For the Hobby business you make some money, but you are not really trying to make a living from it. You can deduct expenses up to but not exceeding the income for the year. Income is taxable. In a profitable business you are trying to have a going business - advertising, etc. You can deduct more than your income BUT 3 out of 5 years you must make a profit. I don't think I'm renewing my insurance this year....

This is all for the USA>

I just had my taxes done (Canada). I was unable to deduct any DM expenses. I believe this was because the other deductions I had regarding my total (non DM + tiny bit DMing) income already put me at $0 tax owing. I would assume I can carry those DM income deductions forward for another year, so I will continue to keep receipts. Wouldn't make more than a tiny bit difference, but it makes you feel good.