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05 Sep, 18
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Why Ignore the Payroll Issue AV Guys

So, I put out a great quote with me going on stage to receive an industry award and I get 833 views from LinkedIn. I send out a post about the issue of Independent Contractors and the payroll issue and I get 23, yes 23 views! Let me say, it will not go away even if you don't read my posts. It is here to stay, and it is an issue in the live event industry. You are playing with fire when you hire a "Labor" company that doesn't do payroll!

Do you know that there are only a handful of companies in the live events industry that put their freelancers on payroll? Yes, just a few of us out there. Otherwise you are dealing with what looks like a legitimate company and they are, they are just for the most part breaking the law and you are helping them. You are at risk as well. Trust me, when they get caught, you are caught as well. If you don't cover yourself and ask that simple question (do you withhold payroll taxes) before you hire these companies it is your fault if you get caught by the IRS or the DOL! They are looking for more income and they know all about our little HUGE industry. I have a number of how many freelancers are working every day in our live event side of the industry. Just think about it for a minute. We are with permanent installation, a 34-billion-dollar industry! (I think that is the number that AVIXA) boasts about the size of our AV industry. I have to double check that, but it's close.

In all of our cases (the ones that do provide payroll in their rate structure), are operating under unfair competition and I am not going to keep losing business to these half-ass companies! I am tired of hearing a competitor is 15% lower or 20% lower or lower or is cheaper. When our clients start to act like they are concerned about these freelancers then maybe things could get better for them. Not all of them of course but those that are really and truly employees not in business for themselves. Do you know how many IRS levies come across my desk in a week? A whole lot... The problem is these companies don't withhold taxes, so the unsuspecting freelancer doesn't really get the paying quarterly thing at the beginning and they wind up owing a ton of money to the IRS that is penalized on top of it because it hasn't been paid.

One more unfair practice to the "employees" being classified as Independent Contractors is they are not being paid overtime after 8 hours in a day. or 40 in a week..  This is a huge problem for both the "Labor" provider and you the buyer.  payback is witch...So be very careful with this standard!

I know one company that advertises that they provide Workers' Compensation to you but when an injury happens they turn around and say to the freelancer that they are an Independent Contractor and will not cover them. Yes, that is what they get from some of these so called "Competitors" of ours...

Don't be tricked because a company gives you a Certificate of Insurance that they are doing payroll and you have no responsibility for their people. Just don't do it. Ask the question!

Thanks for reading once again! I can be reached at 888 783-1599 x1302 to discuss this and any other questions you have about hiring freelancers.

 

AudioVisual Industry American Staffing Association class action lawsuit overtime gig economy tax compliance independent contractors freelancers

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Patty McGoldrick

Patty McGoldrick

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