Gene Maddaus Senior Media Writer Gov. Gavin Newsom signed a union-backed bill on Monday that protects loan-out companies, which had been threatened by a state audit earlier this year.
Actors, writers and crew members are typically not treated as employees of the major studios. Instead, they are paid through their personal service companies, which “lend” their services to the studios.
That set-up, which has existed for decades, allows creatives to deduct agent and manager commissions and other expenses from their income tax.
But in May, the arrangement came into question when the California Employment Development Department conducted an audit of Cast & Crew, one of the major payroll services companies in the industry.
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