Hollywood labor groups are seeking answers amid an apparent crackdown by the state of California on the use of so-called loan-out corporations — a long-standing industry practice that helps actors, screenwriters and other entertainment workers organize their employment records and qualify for tax benefits.
' Because entertainment workers generally operate in a gig-based economy — hopping from one project to the next — it's rare that they are consistently employed by a single company or entity, explained Kevin Klowden, executive director of MI Finance at the Milken Institute. For this reason, Klowden continued, Hollywood players often create loan-out corporations to keep their employment records in one place.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: