Over at FXGuide, neonmarg had a great writeup on a recent event where the Visual Effects Society invited some experts to discuss the challenges and details of working 1099. Recently this has become a hot-topic as several VFX companies have been bring in 1099 workers to help with projects, and in doing so these workers find themselves getting stiffed for paychecks if the company goes under or the project goes bust. The details of 1099 are tricky, but in particular I found this fascinating:
Rogenson pointed out: “It’s really not up to the worker and to the company to determine whether an individual is an Employee or Independent Contractor, it really depends on the facts of that relationship”. This is a complex issue made more complex because the various agencies involved have their own rules and tests (California Labor Commision, Federal Department of Labor, the IRS, State Tax Collector, National Labor Relations Board, etc). As complex as it is “it’s not up to the worker or the company as to how they are going to classify their relationship”.
I personally know a few people who work 1099 because they like the higher paycheck that comes without worrying about benefits, or they have a working spouse who takes care of issues like insurance, but based on the criteria he talks about they are quite clearly ’employees’. It’s a tricky issue, with both workers and companies seeing clear advantages and disadvantages in all scenarios.
The discussion has lots of details regarding ‘day rate’, insurance, 1099 tax status, workers compensation, and lots more. If you work in the VFX industry or are interested in the 1099 situation, you should definitely read it.
