Actors > Employees or 1099

[Josh Melin]

Hey!

In the past I have hired actors as a 1099. Does anyone have a general rule of thumb when it comes to on boarding cast? What implications should a producer consider regarding insurance and taxes?

Thoughts are appreciated.

 

[Terry VerHaar]

I think it depends a great deal on if they are SAG. If they are, you pretty much have to follow their rules. And those are spelled out pretty clearly for you to research.

If not, I think it really is open to whatever deal you can strike wit the individuals (subject to applicable labor laws).

 

[Josh Melin]

Thanks Terry. That is generally how I approach hiring actors. If they are union I typically can get them a waiver for our projects unless they are out of LA. I have done a fair amount of research on the requirements of SAG/AFTRA and it does not appear to be a walk in the park becoming a signatory.

 

[Tarquin Cardona]

Hey Josh. I think one key issue (which you may well be super aware of already) is that most of the time for your peace of mind it is the 'employment' definition as much as what SAG has to say. The Department of Labor is increasingly strict about definitions of what is an employee and it extends to performers and musicians. So even on super low budget one needs to be careful with 1099 as it relates to actors, crew, PAs etc... Because the DOL is hurting for cash they are looking much more strictly at stuff and have questionnaires designed to determine if someone is an independent contractor or an employee. So in addition to SAG waivers, it will come down to a well worded contract, and if one is ever in doubt it is sometimes easier to run everyone through a payroll service anyway to avoid audits etc.. because all you need to have happen is anyone put your company down as their last employer on an unemployment claim and you could be off to the races. As I say you may be aware of this but it is worth getting out there as penalties can be steep and often 'artists' feel they are beyond the scrutiny of DOL but in fact are not.

 

[Bill Sepaniak]

Fairly decent discussion of the issues here:

http://www.abspayroll.net/payroll101-hiring-independent-contractors.html

The other "biggie" is Workers Compensation Insurance. If your "independent contractor" actor is hurt on a shoot and files a Workers Compensation claim .... and you are uninsured .... you could be in a world of hurt ... if the Workers Compensation authorities determine that the actor was really an employee (which they probably will).

 

[Marcus Friedlander]

The DOL is cracking down so it is very simple these days.

If you tell someone WHERE and WHEN they have to be somewhere to do their work, like in a call sheet. Or, you tell someone HOW they have to do their work, like a director does to actors, then they are an EMPLOYEE, not an independent contractor. So almost certainly every single person who works on your movie is an employee.

(I am not a lawyer, and I don't even play one on tv. So, if you have any real concerns, I would consult a professional.)

 

[Terry VerHaar]

Thanks Terry. That is generally how I approach hiring actors. If they are union I typically can get them a waiver for our projects unless they are out of LA. I have done a fair amount of research on the requirements of SAG/AFTRA and it does not appear to be a walk in the park becoming a signatory.

I am not sure that SAG waivers get you off the hook entirely. And, of course, the details depend very much on the size (i.e. budget) of your film. Also, IIRC, waivers can only get you through for a limited number of productions, not perpetually. Eventually, if you want to use SAG actors, you'll have to play by SAG rules.

 

[Hal Long]

Any individual who comes to work on your set (not through another company or self-inc'd) is an employee. You may be able to get away with 1099'ing people who are there for an hour or two, but most everyone on your call sheet is an employee. The DOL will come after the individual producer and the production company to collect owed taxes and penalties.

That said, being a signatory has significant requirements for this production and for ALL PRODUCTIONS GOING FORWARD. If you're looking to do one project on payroll, then you can use payroll companies like media services for general crew and they will tack on +24-26% of the day rate for taxes and workers comp. For one-off union shoots you can go through one of the many production services companies that are signatory (SAG, IATSE...). Typically, you'll pay a percentage of payroll or a flat fee for this service. This is definitely the preferred way to go if you're not ready to do all your shoots union.

PM me and I can give you a company name.

H

 

[Josh Melin]

I appreciate all the information from everyone! I'll definitely look into some payroll companies to find out how much that would add to the budget.