Managing payroll for any company can be both difficult and complex. Because of the challenges involved, many choose to use one of the Administrative Employer payroll service providers available to delegate work, responsibility and — most importantly — liability to a third party. But what if you work within a highly specialized field like the music industry with its myriad twists and turns, from differing state regulatory codes to union and guild contracts that must be honored?
The importance of professional aid is underscored by recent reports the IRS continues to increase audits of companies employing independent contractors. Such a practice is so common within the music industry, and especially at festivals that last a weekend and need the temporary labor, that the burden of conducting independent contractor added onto the arduous keeping of payroll quickly becomes costly and laden with liability. If compliance to prevailing regulations is less than perfect, the risks become greater.
Given the high-profile nature of these events, the spotlight on compliance will be even more glaring.
The need for administration expertise of outdoor organizers and touring musicians with festival bookings is so niche only a couple service providers in the U.S. are capable. CAPS Payroll is one such company, adept and versed in the many intricacies of payroll administration.
CAPS Payroll provides administrative employer payroll services specifically for the entertainment industry, including feature films, extras and television; venue and live entertainment; commercials and music vides; and music tours and festivals. Each industry is well represented with CAPS, with experience being drawn from all corner of payroll.
In the case of CAPS’ Music Tours, Festivals, & Live Events division, the level of music business expertise is wide-ranging and impressive. The division is led by Ron Shirley, vice president, who brings more than 12 years experience in the music industry from his past as a business manager with two CPA certifications in the states of California and Florida. He takes pride in discovering the solutions to unique problems and says he has “never lost a client because of service.”
Shirley works with payroll supervisor Nancy Yoon, and together they serve as an extension of their client’s team with one main focal point: to ensure their client’s success through dedication to detail in payroll administration. Among the many clients they support are music tours for such artists as the Kanye West, Bruno Mars, Katy Perry, A$AP Rocky and celebrated music festivals such as Coachella, New Orleans Jazz & Heritage Festival, the Governor’s Ball and Bonaroo.
Serving Unique Needs
To understand the “Why” behind the need for third-party assistance is clear for music clients. As is the “Why” for CAPS Payroll:
1) Custom Approach: An expert team available on call or in person and who provide “hands-on” support to resolve client-specific needs.
2) Consistent Delivery: Important year-end fiscal deadlines don’t lead to taxing crunch times, as timelines with CAPS are met seamlessly.
3) Industry Expertise: Regulatory variations between states make the need for industry immersion all the more apparent. Music tours hustling from state to state don’t have the ability of CAPS to addresses changes in real time.
4) Reduced Liability: Festivals are such massive operation that the margin for error is considerable. As an employer of record, CAPS is registered in all 50 states and is responsible for employee-related issues relative like payroll, benefits, workers’ comp, employment verifications and state benefits audits
5) Cost Effective: As experts in the laws of the music industry, CAPS manages all aspects of taxation and reporting to ensure that each client never pays more than absolutely necessary.
Festival organizers have enough to worry about with swarming crowds, blazing heat, heaps of equipment and the show itself to load their plate with payroll administration. Spread yourself too thin, and holes in compliance may open up. But when partnering with the right company like CAPS, one can substantially reduce this risk by utilizing their expertise in administration to ensure payroll is being managed efficiently, compliantly and as cost-effective as possible.