Singer Burke’s Tax Manager and in-house tax counsel, Greg Zbylut, wrote a guest column in this week’s Hollywood Reporter to expand upon an interview he did earlier in the summer on California legislation targeting big business’s use of Independent Contractors.
That legislation was signed into law by Governor Newsom on September 18th, and is designed expand the number of workers in the ‘gig economy’ who must be treated as employees, with all the rights and benefits afforded therein.
Now fears are growing that the entertainment industry’s use of popular ‘loan-out’ corporations may suffer collateral damage under the new standards, threatening the financial strategy used for decades to allow creative individuals to deduct expenses like agent commissions, manager fees and other business costs.
So are we facing the end of the loan-out? And is it too late to do anything about it? The short answer is that no one knows yet. But Greg does his best to shine light on the issues and dispel some of the fear and confusion that has been percolating in Hollywood over the last week.