Industry Insiders May Face Tax Bills as California Reportedly Tightens Payroll Rules on Loan Out Corporations
variety.comCynthia Littleton Business Editor The state of California has warned entertainment industry payroll providers and others that it is implementing policy changes that could have significant tax and retirement planning implications for those in Hollywood’s creative community who use loan out corporations to manage their business affairs.
The California Employment Development Department has reportedly alerted payroll service Cast & Crew, IATSE and others of the plan to tighten rules for the use of loan out corporations.
Many creatives in the industry use such a business structure to manage different forms of payments that flow in from disparate employers throughout the year.
That’s increasingly common in the modern era when actors, writers, producers and directors often work on multiple TV shows or movies in a calendar year.
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