Re: LEGAL-FINANCIAL ADVICE for Twangfest
From the Twang Gang We need your advice on setting up our bank account so that none of the individual Twangfest committee members has the account on his or her social security number. I'd be interested in hearing how P2 musicians handle clubs which demand that a band representative provide a SS# before payment for a gig. (Years ago, one of my associates got audited and the IRS did not accept even his cancelled checks that other band members got paid for a particular gig. Since hearing this, we've "spread the pain around" - just in case . . . ) Tom Smith
Re: LEGAL-FINANCIAL ADVICE for Twangfest
Tom Smith wrote: I'd be interested in hearing how P2 musicians handle clubs which demand that a band representative provide a SS# before payment for a gig. (Years ago, one of my associates got audited and the IRS did not accept even his cancelled checks that other band members got paid for a particular gig. Since hearing this, we've "spread the pain around" - just in case . . . ) Happens most frequently when you are playing at Universitiess and other sorts of non-profits, and passport numbers required in Europe. We've never had a problem with IRS. I am going to take a guess though that when you are making the big and/or regular bucks you would set the musicians up as employees and give them weekly checks, taxes and social security taken out, etc. That is a guess however, Sarah
Re: LEGAL-FINANCIAL ADVICE for Twangfest
Tom I would suggest that the band/musician get a EIN #. Essentially a SS# for your company(band). We get paid by check almost every show. 10-12 a month. Thats how we do it and it makes keeping the books straight easier. Dutch Crowd of One -- From: Tom Smith [EMAIL PROTECTED] To: passenger side [EMAIL PROTECTED] Subject: Re: LEGAL-FINANCIAL ADVICE for Twangfest Date: Wednesday, January 20, 1999 10:53 AM From the Twang Gang We need your advice on setting up our bank account so that none of the individual Twangfest committee members has the account on his or her social security number. I'd be interested in hearing how P2 musicians handle clubs which demand that a band representative provide a SS# before payment for a gig. (Years ago, one of my associates got audited and the IRS did not accept even his cancelled checks that other band members got paid for a particular gig. Since hearing this, we've "spread the pain around" - just in case . . . ) Tom Smith
Re: LEGAL-FINANCIAL ADVICE for Twangfest
Douglas Noss wrote: I would suggest that the band/musician get a EIN #. Essentially a SS# for your company(band). We get paid by check almost every show. 10-12 a month. Thats how we do it and it makes keeping the books straight easier. Thanks for the tip; I'll certainly look into this. As for getting paid by checks, though, the majority of clubs in this area (up to 600+ capacity) operate strictly with cash. Occasionally one will require a SS# even for payment in cash. Those range from a small country bar whose owner seems to have been spooked (by IRS or state tax dept.) to a considerably larger metropolitan venue, which seems to be keeping their books as absolutely straight as possible. Likewise, most of the musicians around here - from the worst to top notch players - tend to operate as "self-employed" independant contractors unless they're in a band that has sufficient overhead to warrant some kind of collective tax strategy, etc.. Those situations are increasingly rare, due to the lousy state of the live music biz hereabouts. The instance I mentioned earlier of my bandmate once being tormented by the IRS was rotten, since he's completely honest in his record-keeping and was being straight with them. I found it pretty weird - they're completely dependant on the honesty of your record keeping, yet his tangible proof that the gig money in question was divided (the cancelled checks) was not accepted. I pity anyone who tries to audit him (or any of the rest of us) again. That sucker will suffocate from receipts. Tom Smith
