Payment for shoots can take what seems like an interminably long time to be received. Generally, the process works as follows.
- At the end of the production your agent will send the production company an invoice. It is your responsibility to inform your agent of the hours your child was on set. If you don’t the agent is not responsible if overtime is not invoiced.
- The production company accountant will collate all invoices for the job but will only finalise a payment request to the client at the end of the production period. Remember, each job can last ten days or more.
- The production company then presents all invoices to the client for payment, including accomodation, crew, vehicle hire etc.
- Once verified the client pays the invoices to the production company, who then pays the agent.
Agents earn 20% commission from the model fee. The booking fee that the client pays the agent does not affect the model fees. Every casting costs the agent time and money without any guarantee of getting a booking.
TAX – PAYE
Children working in the Film Industry have been determined by SARS to be obliged to pay tax. Clients will not book kids who are not registered for PAYE. That means your child will be treated as an employee and paid under the Pay As You Earn Scheme (PAYE). This means that they are taxed on their gross total income OF EACH AND EVERY JOB. The client/production company is deemed the employer and will issue you with the IRP5s.
THE GOOD NEWS?
Since it is unlikely your child’s income will reach the annual threshold, all PAYE deducted will be refunded. Visit the SARS website to see how it works.