Talent Payment Accounting

[hdkbill]

We pay them by check and tell them up front that we will be sending them a 1099 at the end of the year. Haven't yet had a problem with a model being upset about that. Our Model Agreement also clearly spells out that we consider them an Independent Contractor, they will be getting a 1099 and they are responsible for all filings. Keep in mind though, that if you film in California, the state of California has determined that models are NOT Independent Contractors, but rather employees.

What they do with the 1099 is, of course, between them and the IRS but at least we have covered our bases, done it correctly and written those expenses off as legitimate business expenses.

In the back of my mind I always keep thinking of the fact that Al Capone didn't go to prison for all those people he killed or had killed, they put him there for tax evasion.

Bill