It's a new year, so let's talk about something unpleasant, like taxes.
One the less pleasant duties I have is handling notices from the IRS or the California Franchise Tax Board that a performer hasn't paid their taxes, and I need to withhold money from them next time I pay them.
Being a performer means you are in business for yourself, and one of the things that you need to be aware of it how much taxes really are. They're a lot.
When the producer hands a performer a $1,200 check for a shoot, how much of that can the performer "really" keep, and how much of it goes to taxes?
Let's assume that a performer shoots enough to make $108,000 a year. Then, let's deduct $8,000 for business expenses (Uber, costumes, makeup, etc.). That leaves a net business income of $100,000.
A self-employed businessperson in California who makes $100,000 per year will owe $36,947 in tax. That means of that $1,200 check, you really only get to keep $756.64 of it; the rest is gone in taxes. And that doesn't count the agency's fees, if you are with an agency.
So:
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Keep really good records. Track your money, to the penny. Mint is a pretty good on-line system for this.
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Make a budget, and stick to it.
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Open a savings account, and put 40% of every single dollar you make as a self-employed performer into it.
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Never, ever touch that money except for dire emergencies and to pay your taxes.
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Get health insurance. It's expensive, but the alternative is much, much worse. (Kaiser is acceptable, not expensive by insurance standards, and you don't have to spend time negoitating between the insurance company and the doctor's office, since they are the same organization.)
It's hard to remember that when someone hands you a $1,200 check that most of that isn't "really your money." No one likes paying taxes, but trust me: the alternative is much, much worse.