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Newsom Signs Bill Protecting Entertainment Industry Loan-Outs, Affirming They Must Pay Payroll Tax
Gavin Newsom signed a bill on Monday codifying the existence of loan-out companies, and making clear they must pay payroll taxes.
In response, the agency conducted audits to determine whether loan-out companies had actually paid the payroll taxes that support the unemployment insurance system, as required by law. Sen. Anthony Portantino, D-Burbank, a key ally of the industry in Sacramento, introduced and passed a bill, SB 422, in the final days of the legislative session in August. To aid in tax collection, the bill requires the payroll companies, like Cast & Crew, to file quarterly reports to the EDD regarding payments to loan-outs, starting in 2026.
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