Posted by William Fowler on May 13, 1998 at 12:45:28:
In Reply to: Re: Financial Core-The Real Poop-Answering Jack posted by Jack Shaw on May 11, 1998 at 12:09:50:
While it's true there is no such thing as a buyout in any union contracts, there are circumstances that constitute a "virtual" buyout. For instance an unlimited usage rate for local or regional markets is a buyout for a cycle. I presume your use of the term buyout is rigid, meaning in perpetuity. I was using it loosely, meaning flat rate for unlimited usage for a defined market over a defined period. Also, industrial rates usually give the buyer/producer a use period of 2 years for scale. The assumption is that the viability of the material will diminish over that time and will be of little use in a world where materials, training methods, boastful sales figures all change in a flash.
As for the independent contractor business, I too am a writer and, like you, have been through four tax audits. The IRS guidelines classifying
workers in the video industry was released in May of 1994 and has since gone through several metamorphoses. The IRS has softened their position due to the meteoric rise in home based businesses. The rule about taking direction being a disqualifier for independent contractor status is about as cogent as a flying rhino.
If I was a building contractor and you wanted me to build your house, you'd have to live in the house I build for you. You could't tell me how large you want the kitchen, what color to paint the living room or how high to make the ceilings. If you gave me those directions, then I'm no longer an independent contractor. That just doesn't fly and the IRS knows it.
If you have an established business presence with a risk of loss and can show that you have been operating as an independent contractor with established business practices and clients for an extended but unspecified period of time, you can be classified as an independent contractor. The main thing the IRS wants is tax compliance. They really don't care that much about classification, but they had to come up with something that would address the problem of those that don't report or pay taxes on income from independently contracted work.
This all, somehow, is supposed to relate to the perils of becoming Financial Core talent. I've been around too long to buy into the union propaganda. The unions are incorporated, money making institutions that employ staff and administrators, but have never gotten me or anyone a job. I don't deny their usefulness in collective bargaining, but to me they've all but given away the store. There are three sides to this story: Those who are passionate about unionism, those who are passionate about individual rights and those who don't give a damn. We've aired two sides pretty well, Jack. I believe the issue is resloved. I'm not going to change your mind and your not going to change mine. The seeds of our discontent have been sewn and enough has been said for others to determine whether to sit on the fence or to fall to the left or right. Unless there is a new development to discuss on this topic, I consider the issue closed. It has been a good exercise in PR and freedom of speech.