Posted by Jack Shaw on May 11, 1998 at 12:09:50:
In Reply to: Re: Financial Core-The Real Poop-Answering Jack posted by William Fowler on May 07, 1998 at 13:47:01:
AFTRA and SAG contracts are not quite as restrictive as you portray. The contracts clearly stipulate that the rates quoted are minimums. Any AFTRA or SAG performer may ask for more and many do. And, may I remind you, there are no "buyouts" under our contracts. I hope there never will be. Further, if an employer properly applies for a waiver under the contract provisions, certain restrictions can be loosened. Not all, but many waivers are granted. Remember, these provisions have been jointly negotiated with employers.
The "small producers" usually will not sign because of reasons other than rates or conditions in the contracts. Most of it comes from misinformation, a lack of communication and fears of unions in general. However, there are reduced rate addendums and individually negotiated contracts for product produced and used in smaller markets available to those producers where provisions of the national contract are adjusted accordingly.
AFTRA andSAG negotiate rates and conditions to which the members and signed employers agree and are bound. Dues paying non-members are saying, in effect, "Thank you for the rates. And I like some of the conditions. But I don't want to be bound in any way that may make it a level playing field for the rest of the performers in the world." Please understand this is my opinion and I believe the opinion of many others who contribute to the negotiating process.
I understand the math very well. But I am not looking at it from the employers viewpoint. That is the employers responsibility in the negotiating process. I want to earn a living. The whole reason for negotiating is to find a middle ground where I can make a living and the employer can afford to hire me. It is fully explained to any potential employer that the performer fees include the rate, appicable taxes and contributions to P&H or H&R. Besides, why should I have to pay the full boat for taxes when employers pay the same percentages for any person working for them in their offices?
Declaring yourself an "independent contractor" is where you may have a real problem. The IRS does not recognize performers as independent contractors. If you do not meet the criteria set down, you are an employee. One of the major criteria is where you do the work for which you are compensated. If you go to a studio that is not your own and are directed in any fashion, the IRS will claim you are an employee. If you are audited and the agent determines you are an employee, you and eery employer for which you have worked will go through a great deal of grief. Even if the new IRS is "gentler and kinder" in its attitudes.
Are you incorporated? Do you really want to absorb all the costs of taxes and your own heath and retirement plans when that can all be done for you? Remember, the employer pays a percentage of the tax on an employees income. It is small, but a savings to the performer.
Yes, I do my own taxes. And, yes it is a pain. However, I will remind you that employee tax returns area great deal simpler than those of "independent contractors." The reason I know is I am a writer as well as a performer. Where is the simplicity of my having to figure out all the percentages opposed to when as an employee, I have someone do it for me?
The reason so many FC performers are feeling comfortable is probably because they have not been audited. I have been, four times. I believe that qualifies me as at least informed about the process, if not close to an expert.
As far as the paper work involved, the only argument that I personally feel holds water is that it is done anew each time a performer is hired. But the majority of that paper work is not generated by AFTRA or SAG. It is once again, the dreaded IRS that creates the largest portion. AFTRA and SAG only asks the employer to send in a production report and signed contract which is taken care of on one sheet of paper. Admittedly there are multiple copies. One is given to the performer, one is sent to the AFTRA or SAG office, one to the H&R or P&H office and the employer retains one. The W2, state tax and I9 forms are government requirements.
I am assuming you are taking this discussion as just that and are not offended by my opinions. And I would like to continue because I feel it is important for everyone to see both side of the issues. But I have one request. Could you put a littl more space between paragraphs? It is difficult to read the large amount of material with no breaks. Thanks.