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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 13935
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I have a question on employer withholding tax for a Film

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Hi there! I have a question on employer withholding tax for a Film Production
JA: Have you talked to a tax professional about this?
Customer: Not yet
JA: Anything else you want the Accountant to know before I connect you?
Customer: The Film Production is an LLC Operating in the State of MI

Hello there. My name is Alex and I would like to help you. I am a Certified Public Accountant (CPA), Enrolled Agent (EA) with the IRS, and a Certified Financial Planner (CFP®).

What is your question pertaining to employer tax withholding?

Customer: replied 10 days ago.
Hello! So this is my First Film, or Documentary, and I want to Pay 3 Individuals (Friends) a Total of $500.00 each for a few days of production since this is a passion project. Do I need to have them fill out a W-4 and Withhold State and Federal Taxes?

Thank you for your questions. I will now refer your request to other professionals who may be able to help you. Best of luck!

Customer: replied 10 days ago.
Thank you!

Different expert here - my name is Barbara, and I will be happy to assist you.

 

You should have them complete a W-4 so you have it for your records.

 

For this one time occurrence, you would not be required to withhold federal or state taxes and issue a W-2.

 

If anything, you would issue a 1099-MISC, but the reporting threshold is $600 or more.

Customer: replied 10 days ago.
Hello! First thank you! And 1099-MISC would then go to my friends towards their individual reporting correct?

That's correct. They report the income on their respective tax returns.

 

The 1099-MISC also gets filed with the IRS.

Customer: replied 10 days ago.
Perfect! Is there a specific form I should use than to report the amount payed to my friends to the IRS for the respected Quarter 2? That is when filming will begin, this summer.
Customer: replied 10 days ago.
This information is super helpful by the way thank you

There is no form other than the 1099-MISC that gets filed early next year for tax year 2020.

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 13935
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Barbara and other Tax Specialists are ready to help you
Customer: replied 10 days ago.
Perfect! That is all I needed to know! Thank you so much for your help today!

My pleasure!

 

Thank you for the 5 star rating. I appreciate it!