But despite these advantages, some people still prefer to be hired as independents. Whenever you hire a crew as an independent contractor, you take a calculated risk that can be returned not only to you, but also to the client who hired you for the job. Responsibility always follows money. ouch! And if you think you can avoid it by closing the open LLC to a particular production, think about it again. The government will have its money, regardless of your tax classification as an employer. If this happens, in most cases, the person who has this decision has just opened his production company for many legal issues, including large fines and penalties at the federal and regional level. In many cases, prosecutions have even been criminal. This was not a problem with the law, which essentially depends on the status of an independent contractor. You wouldn`t hire a home cleaner or a craftsman as an employee, so it didn`t make sense to rent a handle like a handle. As they are the recruitment body, AB5 submits the burden of proof to independent producers, employees or subcontractors.
It is important for manufacturers to understand the consequences of this legislation because of the possible fines to which they may be exposed. AB5 gives the California State Labor and Workforce Development Agency the ability to punish production companies up to $25,000 for each intentional violation. This means it could cost up to $25,000 in fines per misclassified crew member. It is very important that small productions and independent filmmakers, in particular, are aware of the financial burden of any potential fines. By adapting to the new rules and regulations for independent contractors, there are a number of approaches you can take to ensure that your film production will be a success. 25 years ago, the subject was much simpler. In the Portland market, you were probably working as an independent contractor when you were working on a project that wasn`t a big movie or a big TV show. Your insurance, your deduction, even what you said as salary, you were in your place. Reason 2: Self-employed contractors will often file a complaint because of unemployment. As we have already seen, they are not technically eligible for these benefits, but this action will still raise a flag with the IRS.
You may expect the IRS to look at your business in return, and if it is determined to be a misclassification of the workforce, you risk hefty fines. These fines may include: California film and television producers, in particular, have lost the ability to hire most of their production team as independent contractors under the new AB5 law. This is because California has tightened the rules governing the introduction of a salaried worker instead of an independent contractor. Let`s take a look at the language of AB5 to get a better idea of these guidelines. AB5 states that “any person who provides paid work or service must be considered an employee and not an independent contractor,” unless the recruitment agency can prove that three specific working conditions are met. These three specific working conditions are known in law as the ABC test: at the commercial end, at Cine Rent West, we see domestic clients going to Portland for production because of the large creative agencies and other talents we have here.