What Freelance Crew Members Ask About a Payroll Service...
Q: What are the benefits of being paid as an employee through a Payroll Service?
A: There are several financial, organizational, time-saving, and marketing benefits that you may not have considered. In general, being paid as an employee:
Q: Can you give me more details on FICA and Medicare contributions? How does that benefit me?
A: You get a significant financial benefit which increases with the amount of your wages. Now, our client pays the employer portion of several payroll tax and insurance fees. For example, through SHOOTS.com, our client makes a contribution of 7.65% of your gross wages to FICA and Medicare on your behalf. When you work as an Independent Contractor, you pay the entire FICA and Medicare amount!
In addition, when paid as an employee through SHOOTS.com, you are covered under our Payroll Service's Workers' Compensation plan.
Q: If I am paid as an employee, can I still take deductions?
A: You may be able to take some deductions. Since each individual's situation is different, its best to talk with your accountant.
Q: What about other tax advantages?
A: Through our Payroll Service, your taxes are withheld from your paycheck versus you having to make quarterly filings as an Independent Contractor. This can save you time, expense, and headaches! You also receive a W-2 at the end of the year stating your earnings. The Payroll Service can also work with you to assign the most favorable pay frequency allowable for your situation to manage the "tax bite" from your paycheck.
Q: How can I find out more on guidelines for "employee" or Independent Contractor status?
A: The IRS, in conjunction with the International Television Association (ITVA), has published two types of guideline booklets that explain the criteria for Independent Contractors. The smaller booklet, called "A Report on the IRS Guidelines Classifying Workers in the Video Industry" is aimed primarily at freelance people. The cost is $4.00 per copy. The larger booklet, specially designed for IRS agents, is called "Employment Tax Procedures: Classification of Workers Within the Television Commercial Production and Professional Video Communications Industries." This is a more extensive booklet, and costs $10.00 per copy. The booklets can be ordered through ITVA by calling 972-869-1112. You may also want to consult with your accountant and lawyer.
Benefits for Producers, Production Companies and Employers
| International Rates by Country |
|
| US Production Rates |
|
| Freelance Crew Diary Booking Service |
|
| Find Production Crew and Equipment |
|
| RETURN TO HOME |
|
| Euro-Pacific Film & Video Productions, Inc. |
Copyright 1998, SHOOTS.com
1/2/98