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Do you have someone fill in for you when you take time off?
https://mail.karaokescene.net/forums/viewtopic.php?f=1&t=27626		 Page 1 of 1
Author:  junebugsings [ Wed Apr 10, 2013 6:53 pm ]
Post subject:  Do you have someone fill in for you when you take time off?
Hi Everyone,

I'm new to the business as of last summer. I have a full time job and do this business on the side as a hobby. I have a gig that I do weekly and have an opportunity to do another night at a different location. I'm excited about the opportunity but know that I will need time off for a vacation and a couple of other things. The one gig I currently have allows me the flexibility if needed, but the new venue wants someone there no matter what and want me to have someone available. I understand the need to have consistency and I want to be fair to him and myself.

Should I consider having someone fill in for me? If so, would they be an employee or an independent contractor? How do I protect my equipment and how much should I keep for myself? I would appreciate your thoughts around this. :?: Thank you all!
Author:  Cueball [ Wed Apr 10, 2013 7:38 pm ]
Post subject:  Re: Do you have someone fill in for you when you take time o
KJs do it all the time... fill in for each other. Now, unless you are hiring the KJ to work with you on a regular basis, then they are not an employee of yours. Most of us don't even consider a fill-in as an Independent Contractor.

Don't bother writing out some contract. It's not worth the time or hassle, unless you are having the fill-in use your equipment. If that is the case, you want to protect that investment, and have them sign something that makes them responsible for any damages.

The best thing you can do is to find someone who has their own equipment and library. Then, just offer them what you would have been paid for the gig on the night you can't be there.
Author:  junebugsings [ Wed Apr 10, 2013 7:48 pm ]
Post subject:  Re: Do you have someone fill in for you when you take time o
Thanks for your reply. I may need to have the person use my equipment only because where I live I don't really know of anyone who has their own equipment. So having them be responsible for damages maybe the way to go. So the owner of the bar could do a separate 1099 for them and a separate one for me??

Sorry, these may sound like basic questions just want to make sure I cover all basis :)

Thanks!
Author:  GeminiMALE40 [ Wed Apr 10, 2013 8:44 pm ]
Post subject:  Re: Do you have someone fill in for you when you take time o
THIS CAN BE A PROBLEM IF THE KJ YOU USE TRYS TO TAKE YOUR GIG WHICH CAN HAPPEN...BE CAREFUL...JUST A WORD OF WARNING
Author:  Lonman [ Thu Apr 11, 2013 12:47 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
I have hosts that work for me on the weekends. They fill in on my nights if I take vacation. 20 years, never had a problem with any of them trying to take the gig, however I pay them well to begin with - at least more than other companies would pay them. I know some hosts still working for $10 per hour!
I am subcontracted to the bar. They send me a 1099 at the end of the year. The people I have host are subcontracted (not actual employees) by me although they are using my equipment and music libray, so I send them a 1099 at the end of the year.
Author:  The Lone Ranger [ Thu Apr 11, 2013 4:11 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
8) I work six days a week 10 months out of the year, I take off 2 months in Nov and Dec, and come back on New Year's and start all over again. I have an old friend KJ who helped me when I first started out over 18 years ago he is semi-retired and only wants to work a couple of months to pay for his Christmas etc. etc. This arrangement has been going on for years now an worked well for both of us. He doesn't want to to it, however, much longer and is one of the reasons I'm retiring myself in a couple of years. I'll be 70 by then and it will be time. Good luck to you and have a blessed day.
Author:  TopherM [ Thu Apr 11, 2013 6:03 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
Quote:
So the owner of the bar could do a separate 1099 for them and a separate one for me??


My bar owner just 1099s everything on me, including my fill ins, then when I do my taxes, there is a section for "contract labor" costs in the self-employment survey where you defer the tax liability.
Author:  chrisavis [ Thu Apr 11, 2013 6:57 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
I have a local KJ friend that fills in for me with her own equipment and library (she has a GEM too). I pay her the normal rate + some to show my appreciation for covering the gig for me.

-Chris
Author:  TroyVnd27 [ Thu Apr 11, 2013 11:26 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
junebugsings wrote:
Thanks for your reply. I may need to have the person use my equipment only because where I live I don't really know of anyone who has their own equipment. So having them be responsible for damages maybe the way to go. So the owner of the bar could do a separate 1099 for them and a separate one for me??


I recommend setting up an LLC. Well worth it. Not only does it protect you personally from liability, it will also prevent the bar from issuing a 1099. From a tax accounting standpoint, it is better to pass the income through an LLC than to include it in your personal income.
Author:  TopherM [ Thu Apr 11, 2013 11:54 am ]
Post subject:  Re: Do you have someone fill in for you when you take time o
Quote:
From a tax accounting standpoint, it is better to pass the income through an LLC than to include it in your personal income.


How so? It should be exactly the same. I understand that an LLC will protect your personal assets if your karaoke company is sued, but tax wise, it would be exactly the same either way.
Author:  TroyVnd27 [ Thu Apr 11, 2013 2:31 pm ]
Post subject:  Re: Do you have someone fill in for you when you take time o
TopherM wrote:
Quote:
From a tax accounting standpoint, it is better to pass the income through an LLC than to include it in your personal income.


How so? It should be exactly the same. I understand that an LLC will protect your personal assets if your karaoke company is sued, but tax wise, it would be exactly the same either way.


Topher,

You are kind of right - the taxation for both is very similar - over the long run. Assuming that an LLC has chosen to be taxed as a partnership, the IRS then uses Partnership "Basis" for determining your tax liability. Basis fluctuates when property is added, when taxes are paid, distributions are received, debt is incurred, etc. Being smart when it comes to managing your partnership basis will allow you to defer taxation on some income.

Furthermore, and specifically - when it comes to hiring extra KJs/DJs for shows that you do not do - you can set up another LLC or Partnership. The KJs/DJs you hire are then considered the managing partner/s. They handle everything for the shows that they do. You would just be a partner in the profits. If you do it right, the IRS considers your involvement passive, which means that your portion of income is not subject to personal income tax - rather it is treated as capital gains. The Capital Gains tax rate is only 15% and not subject to self employment tax, income tax, etc.

There's a lot of restrictions on silent partners, so if anyone wants to do this, pay close attention to them. You might think you are giving up control, but if you are crafty and communicate well with the bars, you're really not ;) .
Author:  Enforcer9168 [ Thu Apr 11, 2013 4:05 pm ]
Post subject:  Re: Do you have someone fill in for you when you take time o
junebugsings,


Be careful having someone fill in. I just recently had a problem with someone in which I had to fire. I had a buddy of mine who kept wanting more and more money. He also announced his DJ name and said that he was co owners of the business, when he was only an employee. So customers would come up to him sometimes on things and even the bartender working the night would give him the money on a routine basis thinking he was the co owner. Just keep in mind setting definite terms. Don't let anyone start leeching off your business and calling the shots whether in front of you or behind your back.
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