Loan Out Corporations Could End, IASTE Tells Members

IATSE

IATSE Courtesy

EXCLUSIVE: The California Employment Development Department may soon stop recognizing loan out corporations.

Several IATSE locals informed their members Friday night that they’d received notice from payroll service Cast & Crew that, following an audit of the company, the EDD will instead require employers to pay for services directly to contracted employees.

“This would fundamentally change the way that… workers conduct business in the entertainment industry,” a memo sent to some IATSE locals read.

Related Stories

loan out corporations could end, iaste tells members
News

IATSE Continues Bargaining With AMPTP; More Basic Agreement Talks Set For June

loan out corporations could end, iaste tells members
News

2024 Premiere Dates For New & Returning Series On Broadcast, Cable & Streaming

So far, there does not appear to be any regulation change or modification of the law.

According to the memo, the EDD will send notice to all impacted loan out corporation owners to audit the unemployment insurance and other taxes on the compensation that Cast & Crew paid to the loan out entities.

Loan out corporations will have the opportunity to appeal any proposed fines or additional amounts the EDD requests.

In a statement to Deadline, an IATSE spokesperson said: “We are aware of an EDD audit at Cast & Crew and are looking into it.”

It’s unclear how widespread the EDD’s edict will be and whether it would also apply to Entertainment Partners, which provides a majority of payroll services for productions in California nowadays.

Deadline has reached out to Entertainment Partners for comment, as well as the EDD. This post will be updated when they respond.

Loan out corporations are typically single-owner LLCs, allowing a contracted worker to provide services as an employee of their own corporation, rather than receive payment directly as an individual. They can then pay themselves a salary, and even contribute to a retirement account on their own behalf.

While loan outs aren’t exclusive to the entertainment industry, many film and television workers utilize loan out corporations as a way to protect them against liability and receive tax breaks on business expenses related to the job.

If you are impacted by this change, please contact the Deadline tip line to tell us more.

OTHER NEWS

21 minutes ago

Mbappe rules out playing at Paris Games after Real Madrid move

22 minutes ago

Shocking moment suspected bank robber with a small child in his arms flees after handing teller note demanding cash

22 minutes ago

Cronulla thigh tattoos: Identity of footy player with shocking tats revealed as he's ordered to cover them up or QUIT the sport

22 minutes ago

Cody Simpson's classy sign off from Australia swimming after falling agonisingly short of living his Olympic dream

25 minutes ago

Iceland wants to switch up its tourism tax to protect nature — and fight overtourism

26 minutes ago

Renters forced to turn to state benefits to afford rising cost of living

26 minutes ago

Sydney coach John Longmire says clubs ‘in dark’ over AFL rule changes

27 minutes ago

House of the Dragon’s Aegon star on episode one scene that will ‘split’ viewers

27 minutes ago

House of the Dragon episode one recap: Season two premiere is full of scheming, staring and provocation

27 minutes ago

Football rumours: Manchester City not lowering price for Joao Cancelo

27 minutes ago

Jason and Kylie Kelce are the parents of 3: What to know about their family

27 minutes ago

‘It’s a challenge’: Novel timeslot tests Aussies

27 minutes ago

Why does my dog lick its paws?

27 minutes ago

INDIA bloc is alliance of hope: Ajay Rai

27 minutes ago

London leavers: 'We left behind Bethnal Green to live in a £395,000 old stone house on the Isle of Skye'

27 minutes ago

Teachers and GPs ‘staggering’ under extra demands caused by poverty in Great Britain

27 minutes ago

Video: Mass evacuations across Los Angeles where wildfires tear through 14,000 acres - as horrifying images emerge

33 minutes ago

Oil prices fall on weaker US consumer demand, China data

33 minutes ago

Sir Rod Stewart ‘booed’ in Germany after showing images of Ukraine flag and president

33 minutes ago

Nick Kyrgios's mother consumed by 'trauma and fear' after son's Tesla stolen at gunpoint, ACT Supreme Court told

33 minutes ago

What Euro 2024 games are today? Monday's slate includes France, Belgium, Ukraine

33 minutes ago

How the Guardian investigated green space inequality at English schools

33 minutes ago

The $8 Kmart Australia buy hundreds can't get enough of - though most don't even know it exists

35 minutes ago

Pakistan's World Cup failure down to poor batting, Babar says

38 minutes ago

Tom Newton Dunn: Battle to be next Tory leader has begun and with 16 vying for top spot, things will get ugly

38 minutes ago

'Poor look': Cam Smith calls for milking crackdown

38 minutes ago

Video: Hillary Clinton cracks joke about losing 2016 election in surprise Tony Awards appearance... but only fawning A-listers are laughing

38 minutes ago

Video: Alan Cumming calls X-Men sequel X2 the 'gayest' film that he's ever made: 'It's an allegory about queerness'

38 minutes ago

North Perth crash: Man who flipped his car on Charles Street near Ellesmere Street fled the scene, police say

38 minutes ago

Daniel Radcliffe shares love for girlfriend and son as he wins first Tony Award

38 minutes ago

Angelina Jolie has won her first-ever Tony Award thanks to her youngest daughter

38 minutes ago

Josh Berry proves short-track prowess with strong effort at Iowa

38 minutes ago

'The Outsiders', 'Merrily We Roll Along' and 'Stereophonic' win big at Tony Awards

38 minutes ago

At Euro 2024 the talented Belgium team almost escapes the 'Golden Generation' tag. But not quite yet

38 minutes ago

Marilyn Monroe's last photoshoot: Actress posed naked for Vogue just days before her death - revealed as MAUREEN CALLAHAN unearths stunning claim about JFK and Bobby Kennedy: 'I know who killed her'

38 minutes ago

Why this photo of a Ford Ranger has sparked outrage among electric vehicle drivers

38 minutes ago

Getaway host Sam McClymont recalls devastating moment she was diagnosed with aggressive breast cancer

38 minutes ago

Chuck Schumer is roasted for posting picture of himself grilling cheeseburgers after social media users spotted an embarrassing mistake

45 minutes ago

Eid Al-Adha: HM the King Receives Congratulatory Message from Amir of Kuwait

45 minutes ago

‘North by Northwest' Returns to the Big Screen - This Time in 70mm