Financial Well-Being During Covid-19: A Guide for Actors

There’s nothing noble about being a “starving artist”.

As an actor, your financial well-being is an essential part of the life you’re creating. Without a secure financial foundation, your ability to invest in your work, your career, and your dreams is compromised.

Recently, we had a chance to hear from one of Los Angeles’ top accountants, Josh Meyers, and ask him how actors can survive the financial uncertainty the pandemic has created.

Josh Myers is the president of Media City Tax Group, a full service accounting firm located in Burbank, Ca. With over 15 years experience, Josh specializes in small and medium sized businesses, focusing on the entertainment and service industry.  He is also a proud member of the National Society of Accountants and has been a QuickBooks Pro-Advisor for many years. In short, he knows what he’s talking about.

This will take you 5 minutes to read, but you’ll want to read it again.

What is the CARES Act and does it apply to me?

The CARES Act was passed by the Federal Government to try to help individuals and small businesses during this pandemic.  This applies to everyone as there is money that will help out everyone from an employee to a small business. There are even more bills being passed every week so keep an eye on the news for updates.

What is PUC and how do I get it?

The PUC is the additional bonus added to unemployment of $600 per week thru July 2020.  I would recommend applying for unemployment and seeing if you qualify for this extra assistance from the Federal Government.

Ok— let’s cut to the chase: If I didn't have a steady job or any job at all before quarantine, can I still file for unemployment? Or do I need to have been "laid off" to receive benefits?

You do need to have had a job in the last year to qualify for unemployment. 

The basic requirements in CA are to have worked in 2 quarters in the last year and your income in one quarter has to be over $1,300.  Most states have similar requirements so I would look it up for whatever state you are in and if in doubt, go ahead and apply.  It doesn't hurt to try and see if you qualify.  This would be just W-2 income that would qualify for basic unemployment.

If you’re an actor and did some acting small jobs in the last year, those would probably be on a W-2 so you can apply for regular unemployment. Just make sure when you apply online, you enter all income you had into the system so your rate of unemployment benefits you receive is accurate.

So many actors work in the gig economy to make a living (Uber drivers, TaskRabbit, Wag).  Are those actors eligible for unemployment benefits, and how can they apply to get those benefits?

Those types of gig workers receive a 1099.  In CA starting April, 28th, 1099 workers can apply for unemployment as well. This is a new policy that was added due to the pandemic that should help out a lot of people. You can access a link to the California PUA program here and apply for unemployment as a 1099.

If I'm an actor who works in the restaurant or nightlife industry, can I get unemployment support, and how can I apply?

Yes.  If you work in the restaurant of nightlife industries you are probably on W-2 so you can apply for unemployment.  If you are out of work due to this pandemic, there is an additional bonus unemployment of an extra $600 per week that you can qualify for as well.  This is being supplemented from the Federal Government and is only going on through July, so I do recommend applying if you qualify asap to get the extra benefits. The website to apply in California is https://www.edd.ca.gov/unemployment/ and it is all done online.

How can I figure out how to budget since I don't know how long the current situation should last? How long-term/short-term should I be planning?

First, I would recommend applying for all government assistance, if you qualify, and make sure you get your one-time Stimulus Check. This should help put some extra money in your pocket on a monthly basis.  Then I would take the time to actually develop a budget to see how much you are spending every month and how much unnecessary spending you can cut. You will be shocked at how much extra cash you have if you eliminate a little unnecessary spending.  No one knows how long this could last, but if you can budget based on your income from unemployment and your savings, you should be ok for a while.     

I have some tips left over from my restaurant job, and it feels like the wild west out here. Is there any sense in holding onto my cash "just in case" and using my credit card instead?

Banks could always take back your available credit on a credit card, so I would not want to rely on just credit card space to cover my bills each month.  I would rather make sure you have cash available.  This is why I would apply for as much as you can qualify for to maximize your cash on hand and minimize relying on banks to float you month to month.

I'm getting unemployment now, how should I be spending that money?

If you’re getting unemployment, pay your necessary living expenses first.  Then pay credit cards or debtors after. Then, I would spend money on extras, but, honestly, I would minimize extra costs as much as possible. For example, if you have Netflix, don’t also buy movies online. If you’re bored, don’t go online shopping.

There’s a lot of conflicting financial info out there... what are some websites/resources for finding legit info on all things $$$?

I don't trust much I read online concerning unemployment or other info about federal assistance programs.  I would stick with the actual websites. The US Treasury has updates on loans and the stimulus checks on https://www.irs.gov/ and each state has their own Unemployment Website. So, for California I would go to https://www.edd.ca.gov/unemployment/. 

Cash is tight for me now, how should I prioritize my spending during this difficult time?

Pay the absolute necessities and apply for the government assistance.  There could be a lot of money you are not getting, so I do recommend applying to see what you qualify for.

I'm lucky enough to have a bit of money saved. What should I be doing with it right now? Savings account? Ready to spend? Invest? Gah!

I would make sure that you have your necessary bills paid first. Then, I would invest in yourself.  This doesn't have to cost a lot.  Find a way to take advantage of this time to build your dream job, and invest in you.  That can be reading a book or training in your craft.  I have talked to a lot of business owners, and if they have the extra money right now, advertising is a great way to reach clients.  People are home and more accessible.  I would take the time to put together a plan, pursue your goals, and take advantage of this amazing opportunity!

What about my 2019 taxes... when do I need to file those? 

Your 2019 Personal Tax Return is due by July 15th, so no rush on getting it done unless you might be getting a refund back.  Filing now might be a great idea if you have some money coming back to you.  I would recommend you reach out to an accountant and see if you can get a refund for 2019.

What about my rent?  Do I have to pay it? 

Talk to your landlord.  I’ve heard some landlords in LA that are not requiring payment for a couple months this summer.  It’s worth a call.  If you don’t pay, you aren’t supposed to be evicted, but you’ll owe the money eventually, so talk to your landlord and see if they can give you some kind of financial break.

If I'm an LLC or S-Corp, what steps can I take to help get me through?

There are several options for small business owners. There is the SBA Disaster Loan and the PPP Loan.  Both have a portion that can be forgiven.  I would talk to an accountant about how to apply correctly for these as they are not the easiest to navigate.

If I was currently on a TV show and production has shut down, what can I do to stay afloat through this time?

First, I would apply for unemployment if you were treated as an employee.  If you were a loan out company such as an LLC or Corp, you could qualify for the Disaster Loan or the PPP Loan.  Both are great options to help bring money in during the pandemic.  I would also find ways you can bring in money through Zoom Meetings such as training others or teaching others what you did to get your big break in the industry.  You have to treat yourself as a business and not an employee and be proactive during this time.

I feel like I was really financially unprepared for a disaster scenario (no savings cushion, cc debt, etc)... any tips on how I can make sure I am better prepared in the future?

Develop a budget and stick to it!  This can help you save for such disasters, and get you out of debt faster.  It’s hard to look at what you’re spending on a month to month basis, but you have to if you really want to improve your situation. You have to know your numbers!!

Do you have any other advice for actors trying to stay afloat during this time?

Be productive. Take advantage of this time to find other ways to bring in money. Develop a budget and work on sticking to it. Train in your craft and better yourself so when business does pick back up again, you are in a better situation than you were when this all started.  If you don’t get better in your career and finances during this free time, then when will you do it!

Thank you, Josh! I know you’re really busy, but this has been invaluable. How can actors get in touch with you if they have more questions or want to get help with their taxes and finances?

The easiest way to get a hold of me is through our Media City Tax Group website. You can find out what we do and how we work there. And, of course! I’m happy to help. I’ve been working with entertainment businesses for years and I know how important it is to make sure you have your finances in order. Thanks for having me.

If you have concerns about your financial well-being, or are looking for someone to help you keep your financial house in order, reach out to Media City Tax Group today.