Tag Archives: Internal Revenue Service (IRS)

Employee Misclassification in the Entertainment Industry

Employee misclassification is one of the leading labor abuses in the country. In fact, in recent years, both the Internal Revenue Service and the U.S. Department of Labor have launched a misclassification initiative to combat this pervasive issue. Misclassification runs rampant in the entertainment industry, where terms like “low pay/no pay”, “copy, credit, meals”, and “deferred payment” get thrown around freely in order to meet budget. With the ease of access to affordable high quality recording equipment and editing software, the fast-growing independent market has only added to the I.R.S. and U.S. Department of Labor’s frustrations in this regard. The …


Why Employers Should Care About Section 409A

Section 409A is a section of the Internal Revenue Code that provides comprehensive rules that dictate how nonqualified deferred compensation is taxed.  Very simply, “deferred compensation” is defined as a portion of an employee’s compensation that is paid out at a date after which the income is actually earned.  Some common examples of deferred compensation include pensions, retirement plans, and stock options.  The primary benefit of most deferred compensation is that the recipient is able to defer payment of applicable taxes to the date, or dates when the income is actually received. Why Should Employers Care? One major concern for …