Paying Models

wpchawaii · 12-05-2004, 04:16 PM

Hi All,

Hope all is doing well. Currently working on a site, which I hope to launch shortly. I have a question for those who photograph and pay their models.

I know from a legal standpoint that if models receive a certain dollar threshold...then they should be issued a federal 1099. Thus allowing the photographer to deduct as expenses.

I was curious how others handle this? Especially for models who want it "under the table". Or those models who earn above the threshold, married and don't want the wives or others to know.

I'm staying legit through all of this but I want to make sure my models are comfortable as well and answer their questions appropriately.

I hope this makes sense.....

Thanks

Pat

Scorpio · 12-05-2004, 04:45 PM

Hi Pat,

I'm very novice when it comes to shooting models... but i know that if i start talking about tax crap to them, they'll run

that's for sure.

**longboardjim** · 12-05-2004, 05:23 PM

, Who Needs To Know They "Modeled-Nude"?

, Didn't You Hire An "Assistant" Last Week?

Just Make Sure That "Wifey" Doesn't Want A "Job" Too!

Sincerely ~ "...My Cheeks..Err..Lips Are Sealed!..."

P.S - Email Me For A List Of "Legit" Write-Off's

longboardjim@yahoo.com

Dawgy · 12-05-2004, 06:07 PM

its not that hard. just let them know its all private, and its their responsibility to pay taxes. if they dont, its not ur problem.

JustMe · 12-05-2004, 08:26 PM

Greetings:

Originally posted by Dawgy
its not that hard. just let them know its all private, and its their responsibility to pay taxes. if they dont, its not ur problem.

Actually, you need to have another talk with your tax attorney. It might very well become your problem, and in a big way.

US employers, under many circumstances, have a federal obligation to withhold and/or provide documentation with both employees and non-employee contracted individuals/companies.

In the case of models, you may very well be legally obligated to generate an IRS form 1099 MISC if you pay him/her over $600 in a year.

This is NOT an area where you want to take advice from a nameless person on a webboard, no matter how knowledgeable or well meaning they may be. This is how small companies, especially in this business, can find themselves in BIG BIG BIG BIG trouble!

I strongly recommend you contact a tax professional.

Dawgy · 12-05-2004, 08:40 PM

Originally posted by JustMe
In the case of models, you may very well be legally obligated to generate an IRS form 1099 MISC if you pay him/her over $600 in a year.

exactly. if u pay them & give them a 1099, theyre contract labor. its up to them if they pay taxes.

but yeah, give your accountant a call

**Lee** · 12-06-2004, 12:31 AM

Interesting stuff.

Thankfully we've never had to deal with paying models directly

Regards,

Lee

**chadknowslaw** · 12-06-2004, 12:58 AM

Compensation can be a complex subject when the IRS gets involved. You do have the $600 threshhold correct--and that is the total for your fiscal year [typically January 1 to December 31]. If you pay a model $200 in January, then again in August, and a final shoot in December, you are required to prepare a 1099 for that model, plus submit a copy to the IRS among other paper work.

What gets tricky is when that model becomes more like an employee than a private contractor. Just calling them a private contractor does not make it so if that person works for you on a regular basis. A model that does one shoot for $150 and then disappears is not an employee and is below the threshhold for 1099 reporting. A model with a regular work schedule for you, even if paid by the shoot, is likely an employee. The gray area in between is the tough part, but there are tests that your tax professional can use to help you determine if a model should receive a 1099, a W-2 , or is exempt from reporting all together.

wpchawaii · 12-06-2004, 01:40 AM

Thanks to all that responded.

I am aware of the $600 threshold for issuing federal 1099s. I'm not sure about the "gray area" of what constitutes an employee vs an independent consultant/contractor, etc.

I know when issuing 1099s, that IRS will receive a copy thus expecting the taxpaper to include on their returns (thanks again to technology!) LOL!

I guess my main question was - and Scorpio said it...when I meet with potential models....the questions always go to - How Much Will They Get Paid and Do I Have To Report It?

As soon as they go that route...I know the chances of loosing the model has increased....for no one once to pay Uncle Same (not even me)! LOL!

So how do other webmasters/photographers handle this? And what do you tell those married guys who pose, and they receive a 1099 ... the wife goes "Honey, who's this company and why did they pay you this amount of money"? And she goes "Where is the money, I didn't see it"?

And Longboard - Like the Santa / Bears picture - very SHARP! Now for that Santa's list!

Thanks all,

Pat

**longboardjim** · 12-06-2004, 02:23 AM

, That's The Guy! , "ChadKnowslaw" , I Was Telling You About I Just Couldn't Remember His Name!

, I've Been Stalking..Err..Watching His Posts For Awhile!

Thanks About My Pic , You Have Some Nice Models Working For You So?...Their All Married As In Straight?

Sincerely ~ "I'm Ready To Make That "Reality-Video" Dawgy"

**chadknowslaw** · 12-06-2004, 11:14 AM

Gosh, I have a stalker! I'm so flattered :-)

JustMe · 12-06-2004, 11:25 AM

Greetings:

Originally posted by chadknowslaw
Gosh, I have a stalker! I'm so flattered :-)

Be very afraid of any stalker that uses smilie faces as a form of punctuation :wacko:

**chadknowslaw** · 12-06-2004, 12:46 PM

Stalkers aren't nearly as bad as pissed off defendants. When I was prosecuting I wasn't worried so much about the hard felons as the psuedo-macho mouth breathers that were brought up on domestic violence or assault charges. I had one guy scream that he would kill me if it was the last thing he did right in open court--but he was going away for a long time--eligible for parole in 2018. I don't lose any sleep at night over him as long as he is safely tucked away in prison. Although a death threat is a little unnerving, guys like him were not the reason I occassionally needed a police escort. The guy that beat up his partner over a meatloaf dispute is the unpredictable firecracker I worried about. Ah, the good old days ....