I have a sole proprietorship I started to produce my first micro-budget film. I have contracted a line producer to break down my script and create a budget. I have heard of micro-budget films hiring all of the cast and crew as independent contractors and also heard of using a payroll service. I'm inclined to go with the payroll service but would like some specific advice from an expert of why I should do one or the other.
Country/State/Province of question: business in CT filming in NV
Hi from Just Answer.
the payroll service will take care of the taxes, and insure the people working will have insurance like workmen's comp if they get hurt. It's the best way to go.
independent contractors might cost less, but you run the risk of one or more of the cast or crew claiming they should be employees, and you will be at risk of a surprising tax and insurance bill, maybe a year after the project is done.
ah ok yeah I am going to play it safe and go with the payroll service so I can sleep at night
thank you just needed an expert opinion
you're welcome. please leave positive feedback for me.
Tax professional and business consultant for 30 years.