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Paying Model??? How should it be done...
Ah now this should be an interesting discussion - I rarely have a model that will accept a company check - everyone wants cash... well I have to be honest and say that cash for me sucks - its hard to track in the business books and I much rather cut a check to the model... if i work with them more than a few times they are going to get a 1099 anyway so what is the point.... Is it worth cheating the system? I would love some input on this...... as I am soon going to be starting to shoot alot and paying out alot of money.... Do you write it off photogrpahers at the end of the year... Models - do you even pay taxes? Jun 05 05 11:16 am Link I didn't know there was a choice. Professional services are professional services. Richard Jun 05 05 11:25 am Link Thus what? check? Jun 05 05 11:30 am Link The only time a model wouldn't take my company check, I made her sign a reciept before we trekked to the ATM. I do declare all my work with my accountant for tax purposes. When you're just starting out the expenditures are just as important as the income, probably more so. I agree with Bublitz, professional services should be handled as such. Most will be surprised when that 1099 shows up in their mail box and the feds expect their cut, it'll become real professional to them, real quick. Jun 05 05 11:30 am Link Yeh no kidding - the biggest issues I have are model website payouts..... if a girl makes decent site money it is paid by check - and the % for 1099 is pretty ouch in the butt if your not expecting it.. but I cover my ass with the 1099 then its up to them. Jun 05 05 11:33 am Link If at all possible, I would do a check given it is easier to keep track of then say cash. However, I wouldn't get into a pissin' match with a model if she/he wants cash. Having been burned by clients a few times whos checks bounced, I can understand the desire for cash. Never had a twenty bounce on me. And if the model is from out of town, they may want immediate spending money rather than having to run around looking for a bank.. I would keep a log of your shoots with the amount paid as well as putting the compensation amount in the release or contract. In effect you will have their signature stating that they were paid such and such amount. Or, tell the model you want a receipt from them for the amount paid. Basically you just need something in the event you need to provide proof to the IRS... Jun 05 05 11:36 am Link Posted by Keith aka Wolfie: ^^^^^ What he said. Jun 05 05 12:09 pm Link Yeh well todays payment will be check - lets see if I get bitched at... Jun 05 05 12:16 pm Link I'd certainly be suprised if a photographer filled out a 1099 form for me. No one ever has, although not many have paid me more than $600 in a year. I prefer cash, especially when dealing with small sums. If it were for a commercial assignment, I'd expect a check, but I wouldn't expect it to come from the photographer. Jun 05 05 01:01 pm Link Not to state the obvious too often, but it's guys like me who get some models trained wrong, I guess. My photography is my hobby. It's not deductible, so I don't care if I pay them cash or check or whatever, so usually it's cash. In my real business, yeah, independent contractors are paid in check, ALWAYS, and with a proper 1099 by January 31 if the payment gets over the 1099 threshold. It seems to me if a model is working for a professional, it's obvious that a check would be forthcoming, and income and expenses are all properly accounted for. So do models ever form their own S corps or LLC's? I believe that gets around the 1099 requirement. Jun 05 05 01:03 pm Link Usually all my shoots are out of STATE. So cash is easier for me. That way I don't have to wait long for the check to bounce or clear. Also, I usually use that cash to get gas and food. However, I have accepted checks from the selected few. Jun 05 05 01:03 pm Link I have a line on my model release that states the amount paid to the model. I use that as a receipt for services. That way, I can give the model cash and still have a signed receipt with all demeographic data. I use this method up to about $400.00 and my account is pleased with it. However, over $600.00 to any model for a session or group of sessions in one year and I have obtain ss# and do a 1099 Jun 05 05 01:13 pm Link I have not paid any models but I am glad I read this post so if in the future I do pay models then I know to cover my but if Uncle Sam comes calling and as a former Treasury Department employee who has come in contact with IRS agents, I know they can be viscious (hope I spelled that right). Jun 05 05 01:25 pm Link If you pay a model in cash you should get her to sign a receipt because you are going to use this as a business expense I assume. If Uncle Sam does check don't you want proof you did pay this money? even if its $200.00 isn't it still a business expense? even if she is not required to claim it as income don't you still have to prove you paid it if you are audited and you have written this off as a business expense? I thought thats how it worked....I pay my assistants (a few) under $600.00 a year but I still track the money because I will be claiming this money as a business expense. Jun 05 05 01:44 pm Link Posted by Justin: Trust when I say you're not the only one. =o) And actually Justin, get yourself an accountant. Your hobby may be deductable under the training and education clause. Set it up as a home based business. And your accountant will be the most valuable portion of your business. And they are deductable. Imagine that. =o) Posted by Justin: We account for every dime we spend. Well almost. I walk down the hall into my account's office and drop off a few pocketfuls of reciepts. She LOVES when I do that. Im still trying to convince her that Newports from the Chevron are deductable. Posted by Justin: We set up LLC's for all of our contract and regularly used models along with investment and retirement accounts. And even put them through a short class on investing. modeling doesn't last forever. So I try and help the people I work with do something that will last long term. Jun 05 05 02:20 pm Link I prefer to be paid in checks because I do have to report the money I make in my taxes. When you make over a certain amount per year you are requiered to report it. Jun 05 05 02:42 pm Link Posted by Venus: This is a good example of deciding when to accept cash or check payment. Jun 05 05 03:26 pm Link Yep and from the psots so far -I am not very sure any of us knows what to do.. I will start paying by check - and if the model does not like it - oh well.... My books are more important.... Well that and keeping the IRS off my ass Jun 05 05 03:34 pm Link Posted by Leila: That is corrrrect. Anyone who has ever registered a DBA and charged for services would learn this in their first month into their venture, or if they do bookkeeping for other ventures. Jun 05 05 03:41 pm Link Posted by DJ Foothill: Thanks, DJ. We set up LLC's for all of our contract and regularly used models along with investment and retirement accounts. And even put them through a short class on investing. modeling doesn't last forever. So I try and help the people I work with do something that will last long term. Very admirable! Jun 05 05 04:05 pm Link Wait a minute, was was the purpose of the photographer paying the model again? Hell, pay them in pesos. Jun 05 05 04:22 pm Link Posted by Justin: Posted by DJ Foothill: Thanks, DJ. We set up LLC's for all of our contract and regularly used models along with investment and retirement accounts. And even put them through a short class on investing. modeling doesn't last forever. So I try and help the people I work with do something that will last long term. Very admirable! No Justin actually you don't have to start marketing anything which is the beauty of the system. Sometimes I purposly set up companies designed to fail to offset the income I make from other ventures. Unfortunatly for me as my accountant likes to point out Im not very good at setting up failing businesses... =o( Posted by Venus: Venus two options, go to the bank the check is drawn on if possible and cash it, or ask for a Cashiers check, same as cash but allows the photographer to track it if need be. Jun 05 05 05:36 pm Link when i am slow, i'll shoot bikini stock.. the model will get a check .. business is business Jun 05 05 05:48 pm Link Posted by DJ Foothill: Posted by Venus: Venus two options, go to the bank the check is drawn on if possible and cash it, or ask for a Cashiers check, same as cash but allows the photographer to track it if need be. Not a big deal in this discussion, important for people to know though. Jun 05 05 05:57 pm Link Yeh and you can float a ball point signature right off a personal check with brake fluid... then adhere it to any check you want. Posted by !MDF: Posted by DJ Foothill: Posted by Venus: Venus two options, go to the bank the check is drawn on if possible and cash it, or ask for a Cashiers check, same as cash but allows the photographer to track it if need be. Not a big deal in this discussion, important for people to know though. Jun 05 05 07:01 pm Link What money I do earn - does not even cover the costs of makeup, clothing, or anything Im already losing money in modeling - why lose money to Uncle Sam too? Jun 05 05 07:40 pm Link If you're losing moey modeling, the claiming a loss would be an even greater tax boon to you. Your refund would increase. Jun 05 05 07:41 pm Link I do believe that you cannot lose money in a business more than 4 years in a row or someother number my accountant knows. Jun 05 05 07:44 pm Link Thank you for that Info MDF. I wasn't aware of that. I called BofA, Wells Fargo, and WAMutual. They all said they sometimes put a 3 day hold on cashiers checks and M.O.'s. Thank you again for the 411. Brent... did you learn that trick with your check forgery kit??? LOL Yeah MDF... Federal allows you 3 years. Then you create another business to fail... LOL I just LOVE the system. Lady Atropos, what Theda said. By not claiming your expenditures you loose money to Uncle Sam. Losing money modeling. Im sorry I find that a bit humerous. Jun 05 05 07:49 pm Link You guys pay models? Jun 05 05 07:59 pm Link Posted by Hugh Jorgen ©: VERY rarely Hugh for us. Usually my video division does on the rare occasion that it's a one shot deal. The only time we pay usually is when we're getting paid by a client and it's the client's money. Which happens about 2 - 3 times a month. Because Im busy shooting my own stuff. Jun 05 05 08:02 pm Link Let me check my video dept!! Yo dreampretty!!! She says i havent paid her yet why would i pay someone else!! Jun 05 05 08:08 pm Link Well all I know is I pay anyone shooting topless or nude - or if I do a site for them it is TFP with money from the site membership.... I will not shoot topless or nude without money changing hands - #1 - Earns respect with the model #2 - In court if money changes hands - there is a reciept - I win... and the model cannot say she was forced blah blah - you came to my studio - took the check - signed the reciept - then had regrets after - and trust me i give all sorts of outs... Jun 05 05 09:17 pm Link Posted by Brent Burzycki: Hey now I didn't say that money doesn't change hands. I just said it wasn't for that shoot. =o) Jun 05 05 09:43 pm Link Posted by DJ Foothill: I just disagreed with you elsewhere but I agree with you here. Losing money modeling, I am sorry but you must be doing something wrong or on purpose which is a different subject. Jun 05 05 09:49 pm Link That's not necessarily so. Like all businesses, there is initial investment required and you're not likely to make it back instantaneously. In 2004, I could have declared a loss had I a ballsy enough accountant (make-up, tavel, internet connection, clothing, etc.) Jun 05 05 09:55 pm Link Posted by Hugh Jorgen ©: Yeah. Some of us are just at different levels, y'know. If I can have a model pay me for this shot, that's great, but I don't see it happening. And I just don't know of anyone who'd pose for this shot for free. So if I want this shot, I'm going to have to pay someone to help me with it. And I wanted this shot. Jun 05 05 10:07 pm Link Posted by Hugh Jorgen ©: Paying models doesn't always mean you aren't getting something back. Maybe you don't understand some of the business aspects of photographry, like visual mindscapes, but hey it is all good Jun 05 05 10:29 pm Link Posted by ( ANT ) Mgaphoto: What exactly are you getting back? With the rates of some of these models, I'd have better luck hiring a hot escort or stripper for an hour. At least for sure I would be getting a lap dance and get a chance to see some breastesses. Jun 05 05 11:41 pm Link Posted by * Visual Mindscapes *: Posted by ( ANT ) Mgaphoto: What exactly are you getting back? With the rates of some of these models, I'd have better luck hiring a hot escort or stripper for an hour. At least for sure I would be getting a lap dance and get a chance to see some breastesses. You probably get paid with crack lol! Jun 06 05 01:56 am Link |
