Posts tagged PGA
California’s AB5 Law Threatens Film and TV Workers Who Use Loan Outs
May 28, 2024 // Loan-out corporations already pay W-2 wages to their owners. The California Employment Development Department's decision to not recognize loan-outs for payroll purposes means studios would have to pay these corporations directly. Due to the logistical challenges this presents, studios are likely to reject using loan-outs altogether. This could severely disrupt the entertainment industry and needs immediate resolution. And the other giant thing is, other states will not have this law. So why would Hollywood workers stay and have businesses in Southern California if they'd be paying more taxes to live in a more expensive place? Especially if work then moves out of state as well.