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Industry Insiders May Face Tax Bills as California Reportedly Tightens Payroll Rules on Loan Out Corporations
Industry insiders worry about facing tax bills as California reportedly warns payroll firms about a big change in policy for loan out corporations.
The state of California has warned entertainment industry payroll providers and others that it is implementing policy changes that could have significant tax and retirement planning implications for those in Hollywood’s creative community who use loan out corporations to manage their business affairs. The change reported would mean that Hollywood employers would be required pay creative talent wages as individuals and not as contractually obligated fees owned to a standalone business entity, as a loan out corporation is structure. Cast & Crew sent a bulletin Friday afternoon to the many industry workers about the change and urged them to participate in efforts to appeal California EDD’s decisions on the status of various loan out corporations.
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