Do your entertainment payroll choices decrease your liability and minimize your cost?
Here are the questions you should be asking yourself:
- Are you struggling with payroll processing week after week?
- Are you getting frustrated with calculating your talent and crew hours, overtime, meal breaks, premium pay, and penalties (and don’t forget agents’ commissions)?
- Are you tired of filing your weekly payroll taxes, quarterly tax reports, unemployment claims, workers’ compensation reports and spending countless hours figuring out how to process and track your union pension payments?
- Who handles researching of issues when the IRS tells you your submissions are incorrect?
- Are you prepared to correctly process the paperwork for workers’ compensation injury claims?
- Are you certain that you are handling these claims, and the annual audits, effectively in order to prevent your workers’ compensation rates from increasing or even worse, being cancelled?
- Who processes your W2 and 1099 statements at year end?
- Are you aware of all the IRS rules and regulations regarding 1099 independent contractors?
- Who handles your labor law and union related questions?
- How much time do you spend calling the unions and state labor agencies researching your questions to ensure you are in compliance? Are you confident the answers you receive are correct?
- Even if you are you 100% certain that the person handling your payroll processing is not making mistakes, what happens if an honest mistake does happen?
- Who is responsible for paying the penalties?
How you can be assured you will decrease your costs and liability?
Employer of Record (EOR) entertainment payroll companies are built on the premise that your payroll liability and costs are minimal when you, the producer, director or creative director sign on as a client.
The processing and reporting of your talent, crew and staff payroll is a huge liability for whomever is performing the task.
It can be extremely costly if you are not aware of the applicable labor laws, union rules and regulations, state and federal employment taxes, workers’ compensation requirements and unemployment insurance.
A paymaster will alleviate these concerns. The paymaster will provide the necessary workers’ compensation coverage, and report all payroll tax liabilities under their federal and state employer identification numbers.
A paymaster’s staff is knowledgeable of all federal and state labor laws and union pension rules. If there is a mistake on a submission, paymaster will handle the research and resolution, NOT you. If there is a workers’ compensation claim, it is filed against paymaster and handled by paymaster, NOT you.
All unemployment claims are filed against paymaster, NOT you. The list of problems the paymaster will handle FOR YOU is endless.
In summary ...
Hiring a paymaster means the paymaster becomes the “employer of record” for tax reporting purposes, ensuring zero liability for you in this area. A small administration fee removes your liability and decreases your long term and overall costs.