With regard to a Work for Hire, (in this case, Location Manager) I’m preparing final invoice and need a producer’s take on tax. Are the hours taxable if our work for hire agreement states only the hourly and daily rate throughout the term. I’m inclined to add it and they can ask if they have a problem with it. Thoughts?
Thanks all.
Alexandro Pacheco
Work for Hire usually means an invoice is issued to you for that time, and if it's invoiced, then it is 1099, and not taxed - or not by you at least. Wait, are you the Location Manager?
If you're the Location Manager, and you're being paid after submitting an invoice, then they are not taking out tax, and you are not a product, so you cannot charge them tax (unless you are renting equipment along with your daily rate).
So, no. You do not add tax. You just have to set your rates high enough to make sure you can pay your taxes and still pay yourself. The plight of the contractor, I'm afraid.
I hope that helps!
Hey Alexandro, this is Karen from the Stage 32 team. I just wanted to let you know I moved your post from Financing / Crowdfunding to Producing (since you're talking about hiring, contracts, and charging tax, which a Line Producer can help with), as it fits much better there. Let me know if you have any questions and all the best to you!
Death and taxes - and tax on your death. These are the finite things of the universe. Personally, I do a lot of 1099 work and I always budget into my rate the tax cost that will be due in quarterly payments. Consider it as part of your wage. Good luck!