As a writer, I formed a loan-out company so that when I am hired to write film and TV, companies actually hire my company. Then, I can send myself wages for those jobs as needed. The rest of the money stays in the corporation, and I can pay myself accordingly with it. This practice has been going on in Hollywood for years, and is a great way to manage your money, have write-offs, and allow writers, directors, actors, and IATSE members to budget accordingly for the fat and lean years. But now, the California Employment Development Department (EDD) is coming for loan-outs, and this could quite possibly destroy the way the majority of how Hollywood does business and have serious ramifications for everyone in the industry. It may even cause Hollywood to leave Los Angeles. The EDD is scrutinizing the tax policy for loan out corporations in the entertainment industry by changing the rules for loan out corporations. The EDD says it will determine the use of loan out corporations on a case-by-case basis. But the WGA, IATSE, DGA, PGA, and SAG-AFTRA have not released any public statements on whether or not their members will be able to use loan-outs under these new rules. Payroll service Cast & Crew sent an email warning people who have used them in the past that they can no longer pay loan outs, thanks to this law. So, what are these law changes? A change to the tax treatment of these corporations could mean...
Published By: NoFilmSchool - Monday, 27 May, 2024