about model payments

[webnet]

How do you pay your models?
I would like put it in my accounts as an expense, but all the models want the money in cash and without bills, the most are escorts and want the same deal when they work in porn.

legally hire your models?

[Adam Mason]

We pay in cash but include the amount the model gets paid on the model release - which also explains that they are legally bound to declare their income to the tax man. I don't understand how you cannot enter one of your biggest expenses in your company accounts - you might end up in court yourself if you don't!

[Paul]

Same as Adam.
I pay them cash. The model release clearly states that they are contracted labor and responsible to pay taxes. If a model gets paid $600 or more they also get a 10-99 at the end of the year from my tax guy and their earnings get reported to the IRS.

[webnet]

adam, you dont need register the model to the "seguridad social" in UK ?
in spain "seguridad social" (I dont know what is the name in UK) you need register any person that you hire, still if its only for 1 o 2 days, and pay for this days.
I know in USA not exist,

at the moment I hire only few models, its because I ask how you pay your models. ;-)

[AlexManifestMan]

We pay our models by check requiring that they fill out all the appropriate paperwork. Fortunately the bank is one block from the studio so the can go cash them there. Paying them any way other than totally above board actually is very dangerous here. To do so gives them the ability to hold the illegal act over the head of the offending studio. The IRS is a much bigger concern here than 2257. Not to mention the possible problem of hiring a potentially undocumented worker.

[rawTOP]

The IRS is a much bigger concern here than 2257.

Alex isn't joking. In US tax court you're literally guilty until proven innocent.

[Adam Mason]

In the UK, models are employed on a "self-employed" freelance basis - they don't have a job with the company as such - they just provide a service that's not conctractual in an employment sense. However, UK law does require them to declare their income and pay the necessary tax.

If in Spain you have to actually employ people and pay their taxes etc even for one days casual work then that's what you should do - follow the laws of your land - in my opinion at least.

[webnet]

yes, I know, I need to ask to my tax consultant ;-)

[amadmedia]

We have all of our models sign a 1099 and we have a receipt they sign.

[webnet]

problem solved ;-)
my business agent told me that is suffient with the signed model release with the included amount paid to the model.

[QueerLust]

I love how in the good ol' USA, cash is considered "suspicious" when cash is the basis of our monetary system.