{"id":621870,"date":"2024-05-25T23:40:06","date_gmt":"2024-05-25T20:40:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/are-hollywood-loan-outs-in-trouble\/"},"modified":"2024-05-25T23:40:06","modified_gmt":"2024-05-25T20:40:06","slug":"are-hollywood-loan-outs-in-trouble","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/are-hollywood-loan-outs-in-trouble\/","title":{"rendered":"#Are Hollywood Loan-Outs in Trouble?"},"content":{"rendered":"
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\n The California state department responsible for providing unemployment benefits is disputing the common industry practice of paying workers through loan-out companies instead of directly, according to a major Hollywood payroll provider.<\/p>\n

\n \u201cThe California Employment Development Department (EDD) has informed Cast & Crew that payments made to loan-outs should have been paid directly to the loan-out corporation owner\/shareholder as wages,\u201d payroll provider Cast & Crew said in an email sent to industry workers on Friday. \u201cIt is anticipated that this will quickly become an industry-wide issue. It will not be specific to payroll processed by Cast & Crew, and would app<\/a>ly state-wide, regardless of payroll provider.\u201d<\/p>\n

\n According to the payroll provider, the EDD\u2019s position \u201cappears to be targeted general<\/a>ly to the use of loan-out corporations in the entertainment production industry and would have a major impact on loan-outs working on countless productions in California.\u201d <\/p>\n

\n Many Hollywood workers \u2014 from screenwriters to reality television producers \u2014 set up loan-out companies, which both offer corporate protections and can provide these workers with a tax benefit. By setting up an S-Corporation, C-Corporation or LLC, workers become an \u201cemployee\u201d of that entity and their compensation is paid to the company, which then pays the individuals. According to a blog post by industry payroll provider ABS Payroll, production companies can also benefit from the use of loan-outs: \u201cHiring a loan-out can save the production company money because they will not have to pay the payroll taxes for that individual,\u201d the post says<\/a>.<\/p>\n

\n The Hollywood Reporter<\/em> has reached out to EDD, Cast & Crew and multiple other major Hollywood payroll providers for comment.<\/p>\n

\n Cast & Crew is opposing this position, the company said in its note, and is working with both entertainment companies and union leaders to confront what it called this \u201cextremely important issue.\u201d The payroll provider informed email recipients that loan-out corporations \u201cunder review\u201d are set to be sent notices within the next 30 days. Those corporations can then \u201cjoin the challenge to the EDD\u2019s attempt to invalidate the use of loan-outs\u201d by filing a petition.<\/p>\n

\n In a statement, a spokesperson for the actors\u2019 union SAG-AFTRA said it is aware of the EDD\u2019s position on loan-out corporations. \u201cWe are in contact with Cast & Crew and the other entertainment unions about this matter. We will engage with the industry, our sister unions and the government as this situation develops,\u201d the spokesperson added.<\/p>\n

\n IATSE, meanwhile, said in a statement that \u201cWe are aware of an EDD audit at Cast & Crew and are looking into it.\u201d The Writers Guild of America West added, \u201cWe are in contact with our sibling unions about this issue. WGA West will take any necessary action to preserve the long-standing use of loan-outs in this industry.\u201d<\/p>\n

\n In the meantime, Cast & Crew said in its communication, \u201cThere is no current restriction on our continued processing of payments to loan-out corporations, and we will continue to do so as normally directed.\u201d<\/p>\n<\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The California state department responsible for providing unemployment benefits is disputing the common industry practice of paying workers through loan-out companies instead of directly, according to a major Hollywood payroll provider. \u201cThe California Employment Development Department (EDD) has informed Cast & Crew that payments made to loan-outs should have been paid directly to the loan-out…<\/p>\n","protected":false},"author":1,"featured_media":621871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2022\/03\/HollywoodSIgn229388-H-2022.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-621870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/621870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=621870"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/621870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/621871"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=621870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=621870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=621870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}