I spent the better part of this week working on a complicated story for the Entertainer about a subject with potentially far-reaching implications. Anybody with an interest in music or other performing arts should take the time to read it; here’s the link. At risk of sounding competitive, coverage of this issue in other publications has been misleading at times; for example, the Independent just last week ran an article that stated that musicians “are required to obtain a Workers’ Compensation Act exemption” — with no mention that clubs have other options for handling the issue.
Unfortunately, this isn’t something that bars, musicians, and others in the biz (as well as us fans) should take lightly. The state has recently begun enforcement on this issue, and already one company, Porterhouse Productions, has pulled out of more than 70 shows that it planned to produce this year as a result of their run-in with the state.
Fortunately, there’s a bill in the legislature right now that would address this issue, at least to an extent (but only related to musicians). It looks like that sidebar to my main story didn’t get up online today, so check out the paper version of today’s Entertainer for info on it. The bill is HB 598; it goes to the full house floor for a first vote this coming week, supposedly. After that, if it passes readings, it’ll go to the Senate.
[...] his blog Nickell adds that a bill coming up for a vote in the House next week, HB 598, which at least exempts contract [...]
Excellent coverage of an important story Joe. I’m going to pass this on to the Montana musicians and presenters I know and encourage them to support House Bill 598 by calling their local representative. The bill may not be perfect, but we should do something to help artists and presenters in Montana before this legislative session ends.
Another angle for us to consider is how cultural tourism contributes to the state economy and how these seemingly arbitrary regulations might hinder it’s growth. Think of all the folks who visit our state and discover some of the finest local and touring entertainment in the Northwest. We don’t want the quality or availability of our entertainment to go down. We want to make it even better!
[...] joe nickell of the missoulian’s entertainer uncovers a problem which threatens our very soul in this live music loving state. i cannot imagine showing up at the bar in Chico on a friday night from a flyfish float on the yellowstone and seeing no live band performing….this needs fixing folks and fast….with all the good bills in Helena going down in flames along with some bad ones it would seem that our legislators can at least protect our right as montanans to hunker down over a beer and hear our friends and neighbors wail out a good riff of music during these hard times. [...]
This is truly absurd! Either State Fund wants to make more money, or the State government stupidly thinks this will help cover its shorfalls (and they just may be that stupid) or they’re absolutely clueless about the nature of the music scene! I do have one question, however. Typically if an independent contractor makes less than $600 from a particular establishment in any year, neither the establishment or the contractor has to report that as income. Would the majority of musicians fall into this category? (Yes, I’m disputing the guy who said “even a musician who worked one hour in a bar one night in a year” would have to file a W-2. What happened to the lower threshold?!)
Hate to tell ya, but you’re not right about that, Matt. The independent contractor has to report any income, no matter how small. The hiring agent doesn’t have to send a 1099 form if the total paid in a year is less than $600 (I think you’re right about that threshold), but that doesn’t mean it’s not income and doesn’t need to be reported as such.
But if a person is an employee, he/she goes through all normal payroll, work-comp insurance, etc. requirements — even if the person only works one hour in one year.
And any musician who doesn’t have an official independent contractor certificate from the state of Montana is considered an employee.
And for what it’s worth, all compensation must be included for these purposes — including food, drink, lodging, or other travel payments.
I should add a caveat: I’m no accountant, nor am I a lawyer; and my advice should not be relied upon for any reason other than….uh….reading material. Or something.
[...] Threat to music (and all performing art) in Montana [...]
I support HB 598. Created this group for others to show their support!
Support HB 598 – Support MUSIC in Montana
http://www.facebook.com/group.php?gid=80321826101 (Facebook Group)
[...] Good coverage and reader comments. [...]