WORKERS COMP & PAYROLL INFO
WMM uses the super user friendly payroll platform, Wrapbook.com to run payroll and process timecards for anyone you'd like to pay as a W2 employee. Here’s what that means — and why you might choose to go that route:
1)Â CA and other states have STRICT rules.
If someone is getting paid over $600 and you’re telling them when and where to work (i.e. via a call sheet), then the state considers them an employee — which means they’re supposed to be paid as a W2, not a 1099 contractor.
So, on our end: each person on set must be paid through payroll (as a W2 with taxes withheld), or officially listed as an intern/volunteer for We Make Movies. Any payments made to workers as 1099 contractors outside of our payroll system are solely your responsibility. We can’t participate in or be made aware of those transactions.
2) Insurance coverage differs.
We do carry volunteer accident insurance, which will cover medical bills if someone we're processing as an intern/volunteer gets hurt on set — but it’s not full workers comp.
If someone’s a W2 employee and gets injured, they can file for workers comp and potentially get reimbursed for lost wages. Volunteers won’t get that — they’d just have their medical bills covered.
3) W2s can apply for unemployment.
Right now, a lot of crew are between gigs and want the option to file for unemployment. That’s only possible if they’re paid as a W2 (they can then list Wrapbook as their employer).
If they’re listed as an intern or volunteer, they can’t claim unemployment through us and any unemployment fees WMM incurs will need to be covered by production.Â
We know payroll adds cost, but one big upside is that Wrapbook handles all the tax collecting and paperwork for you — less hassle and headaches at the end of the year.
You can use this tool to estimate the cost:
đź”—Â Â Wrapbook Payroll Estimator
Our only added fee is a 3% processing fee on the total (gross wages + taxes) we send through Wrapbook on your behalf. That covers the onboarding and timecard handling.
