Taking out taxes on model pay?

A model friend of mine appearred in a movie for one of the big porn companies last week. He was paid UNDER $600, but the studio took out taxes and Social Security as if he was an employee, not a contractor.

He's scheduled to do another shoot this week which would put his total for the year over $600 threshold to require a 1099, but again, he got deductions taken as if he was working in the office. There is no promise of work beyond those two shoots.

Is he getting scammed?

Wouldn't it actually make the studio more at risk for Workmen's Comp. and Unemployment if he is considered an employee?

He is not getting scammed if taxes are being taken out. Since he is earning money, the law says he must report his income and pay taxes accordingly. I know most would prefer not to have their income reported, here it is being reported and taxes withheld, including Social Security. He can't really gripe if the studio is reporting his income and withholdings. If he is due a refund he will get it, and he will have credits to his social security account.

Anything over $600 MUST be reported,and anything under $600 CAN be reported. The studio is actually doing the right thing by reporting at any level of compensation.

It is likely that the studio treats every model as a temp, which is perfectly acceptable and probably the way the IRS would prefer. That way, all income is reported and taxed appropriately. The studio does not need to worry about unemployment insurance given the fact that he is not working full time [at least 20 hours per week for most states for the purpose of qualifying for unemoployment benefits] however he would be entitled to worker's compensation benefits as a temporary employee if he were injured on the job.

An employer can either purchase worker's compensation insurance or self-insure [pay each claim as it comes along]. That is a much broader subject, and worker's compenstation laws do differ from state to state, so for a specific question a consultation with an attorney or insurance professional is advisable.


In summary [attorneys can be so long winded] :
Your friend is not getting scammed. I assume he is just being treated like any other temporary employee. He is entitled to worker's compensation if he is injured on the job but not entitled to unemployment benefits if he is not employed.

Does that answer your question?

Thanks, that does answer my question, and even though it's always been an option for adult studios, I've never seen it done before.

I guess it acutally means that the business as a whole is becoming more "legit".

I'll also suggest that my friend find a way to "accidently" slip on a banana peel at the next shoot.

I think many of the companies in adult are starting to look at this whole 'porn' thing as more of a business than a hobby these days which is definately a good thing :)

Regards,

Lee