2023 ALLOWANCES & REIMBURSABLES POLICY
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To all Cast and Crew,
MKGXR Productions, in keeping with industry standards and certain state requirements, reimburse Crew members for reasonable business expenses.
A reimbursement or other expense allowance arrangement is a system or plan that allows an employer to pay, substantiate, and recover expenses, advances, reimbursements, and amounts charged to MKGXR for Freelancer business expenses. Arrangements include per diem and rideshare allowances.
GENERAL AGREEMENTS
Any and all allowances or reimbursables are determined on a per-production basis.
Specific allowances and reimbursables will be noted on your individual Deal Memo prior to the start of production.
Any ADDITIONAL requests for reimbursement must be made in writing and will be approved or declined based on the individual requirements of a specific production.
Please remember that something that was approved on one production MAY NOT be approved on subsequent productions.
Requests should be emailed to Productions@mkgxr.com
WHAT IS A REIMBURSABLE
To be considered reimbursable an expense must meet the following three conditions:
Business connection: The expense must occur in the performance of services as a Freelancer of MKGXR.
Documentation: The Freelancer must substantiate their business expenses by providing the MKGXR with evidence of the amount, time, place, and business purpose of the expense. The Freelancer also must submit business expenses and documentation within 14 days of incurring the expense.
Expense documentation should substantiate the purchase date, the item that was purchased, the purchase amount, and that the Freelancer purchased the item.
Meeting these requirements Expense Documentation can take the form of a screenshot from mobile payment services or electronic transfer platforms.
WHAT IS AN ALLOWANCE
Allowance is the TOTAL amount a freelancer is eligible to receive for expenses like baggage fees, rideshares, parking, and Per Diem. Eligibility does NOT mean this is the exact amount you will receive. Any costs incurred in excess of the stated allowance must be approved by the Line Producer on the specific production. Please see your Individual Deal Memo for production specific allowances.
How to calculate mileage?
Use the - Los Angeles 30-Mile Studio Zone and Secondary Studio Zone Interactive Map
Enter in the location of the shoot.
Mileage = the total number of miles OUTSIDE the TMZ (thirty mile zone) x2
Mileage is calculated daily - to and from set
For more information see Mileage Rate Memo
WHAT THIS MEANS FOR YOUR TAXES
MKGXR Productions in compliance with Internal Revenue Service (IRS) standards and with the intention of best tax benefits for our members maintains an Accountable Plan following the IRS regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. This means that reimbursements are not subject to withholding taxes. However, expenses must be business-related to fall under an accountable plan.
In comparison if the plan is non-accountable, reimbursement for expenses is considered part of the employee's compensation and therefore is subject to withholding via the employee’s taxes.
According to IRS rules, under an accountable plan, expenses are reimbursed if they are business-related and are adequately accounted for. In addition, amounts paid in excess of actual costs must be returned to the company within a specified timeframe.
