Verifying information reported for your child actor

Wages are reported to social security through the routine payroll process. Normally, an employee does not have to be concerned that their wages are correctly accounted for within the social security system. The Social Security Administration mails yearly (usually 3 months before your birthday) a statement which includes your lifetime earnings totals, and estimated benefits from Social Security upon retirement based on prior earnings.

Often, the large earnings being reported for a minor (which is unique to our industry) will trigger a review process where Social Security may freeze the account, and notify the employee that there is suspicious activity reported for their Social Security number. Many parents are very familiar with these letters.

It is crucial to not only follow up with any correspondence received from the Social Security Administration, but it is recommended that minors request their Social Security Statement annually. They are not automatically sent to minors, they must be requested. This becomes extremely important when considering the fact that an individual has only 3 years to correct their social security records. Even if you are assured that a problem has been fixed, please review the actual statement annually to verify that it indeed has been!

The request for earning information can be made online at www.ssa.gov – Under Resources, select “Your Social Security Statement” – then select “Need to Request a Statement” – You will be required to provide the following information for your child.

• Name as shown on your Social Security Card
• Social Security Number
• Date of birth
• Place of birth
• Mother’s maiden name – last name only (to help identify you)

Form SSA 7004-SM , Request for Social Security Statement may also be mailed in (this form is attached). This information should be reviewed to verify that all earnings were properly received and recorded. It would be a great idea to add this step to the income tax preparation routine each year. Additionally, if there are identify theft issues – with someone using your child’s social security number for work purposes, you will see the additional earnings and this can alert you to other actions you must take to protect your childs identity.

PARENT RESPONSIBILITIES

Welcome to the world of being a parent to a young performer! This job comes with many responsibilities. It’s important for a parent to realize this at the very beginning. Of course, the most important responsibility any parent ever has is to raise a happy, healthy, well adjusted child. It’s common knowledge that this industry can present unique challenges along the way that we are not going to address here. Suffice it to say, nothing is more important than the well being of a child and the parent of a young performer has to be vigilant with their awareness and remain within the families own personal boundaries of behavior.

Hiring Your Child’s Team

While a parent has many responsibilities, a successful young performer’s career will include many other adults. A parent must always be mindful of the people they choose to allow to work with their children. Every relationship – agent, manager, photographer, publicist, lawyer, teacher, coach – is a choice. The choice to work with someone should be based on many things. Among them, their expertise, their character, their professionalism, their enthusiasm for your child (not to be confused with OVER-enthusiasm), their like-minded vision, and what we categorize as “vibe”.

Knowing and Following Labor Laws

In California, a parent who applies for and receives an entertainment work permit is signing under the penalty of perjury that they are aware of, and will abide by, the laws governing child actors – including work hours and working conditions. A parent should always know the laws in the state they are working. Permit requirements and working hours vary from state to state. There is a great resource at SAG.org – which is a state by state summary of the laws pertaining to child actors. The penalty for violating child labor laws falls on the parents…not production. The buck stops at mom!

Teaching and Demonstrating Professional Behavior

Parents teach their children most of the behaviors and skills they have. For young performers, a parent is responsible for instilling in their child a professional work ethic, which includes being on time, paying attention, and being prepared. When employed, someone is paying your child for services rendered, and usually paying them quite well. Although everyone is understanding about a child’s behavior (depending on their age) a successful young performer should understand the expectations of them. Professional behavior also extends to the parent, as well. California state law and SAG contracts require that a parent be within sight or sound of their child at all times. Please take this responsibility seriously. Be supportive and always attentive to your child’s needs, but remain professional and appropriate.

Being a Knowledgeable Part of Your Team

We discussed above the importance of selecting appropriate members of your “team”. One of the areas that we feel very strongly about is that the parent remains a part of that team. What does that mean? It means that you allow those you are paying to do their jobs, but not that you allow them to relegate you to being a “stupid” parent. The parent who is educated and aware of their responsibilities will nicely compliment the rest of the team. If someone else is intimidated by a knowledgeable parent, that is a cause for concern. Always keep in mind who has what primary responsibility (you aren’t going to find a bullet point here for seeking employment as that is not a parents responsibility). However, please don’t assume that your agent is doing all of your financial bookkeeping for you – or will tell you about every change in the laws. They expect YOU to be aware of your responsibilities.

Dealing With Unions

For many child performers their career path will involve one or more of the entertainment unions (SAG – Screen Actors Guild, AFTRA – American Federation of Television and Radio Artists, AEA – Actors Equity Association, and AGVA – American Guild of Variety Artists). Each of the unions has their own jurisdiction – which means if your child is working on a union radio spot – it will be an AFTRA job. Recent events have caused some of these lines to blur, however.

The jobs that affect union eligibility and the decision about when to join is definitely something a parent has to pay attention to. SAG membership joining fees are equal to 3 days of principal work. (approximately $2,400). There is a time in a career path that it’s a reasonable thing to do, however joining the union eliminates a member from working on non-union projects. There are many resources, including this site, which can help you sort out how one earns the opportunity to join the union – and how to plan for that.

An additional parent responsibility related to unions is to ensure that the child follows those agreements of their union and understand the union status of a project prior to accepting employment. That means honoring the commitment to not work non-union after joining one of the unions.

Handling Finances

This is a huge area of responsibility for a parent. HUGE. Until the time, if ever, that your child’s career has become so lucrative that they need a business or financial manager, that responsibility falls to you. In California, New York, Louisiana, and New Mexico there are laws related to trust accounts for child performers. You will find other documents on this site related to specifics of what the parent responsibility is in that regard – but generally – a parent is responsible for doing research about banking options and opening an appropriate account, monitoring the withholdings from employment and matching them to deposits made into a trust account, communicating with employers past and present about accurate account information, and seeking alternative investment opportunities that are allowable by law.

Day to day decisions should be made with good financial sense. In California, the child actually OWNS all of their earnings, which is a distinction from every other state where those earnings are considered family money. Although it is certainly appropriate for their earnings to pay for their expenses related to employment – it is a parent’s responsibility to show good financial judgment. This includes not repeatedly paying for overpriced photo sessions and similar optional business expenses. It is very easy to quickly whittle away past earnings in pursuit of other employment. Be prudent and mindful of those expenses.

In many states, including California, minors are eligible for unemployment compensation. There is a very comprehensive article on our website about Unemployment in California. It is a parent’s responsibility to determine if their child is eligible for benefits, and if they wish to apply for them. The biggest financial responsibility that parents are often not aware of concerns Income Tax. Federal tax law indicates that a parent is liable for a minor’s tax liability – so don’t make the mistake of thinking they don’t expect a child to file Income Tax returns. Minors pay taxes just like every other wage earner. There is a very detailed article on this site related to the specifics of Income Tax.

Lastly, it is a parents’ responsibility to ensure wages are received and that commissions, bills and union dues are paid.

Understanding Contracts and Legal Papers

The professional young performer will encounter many, many contracts, agreements, and employment documents throughout their career. It is a parent’s responsibility to understand these contracts and to act in the best interest of their child. Contracts include those between agents, managers, employers, photographers, etc. Critical components to agent/manager contracts include length of time, commission %, what work is commissionable, and the “out clause” to end the contract, if necessary. Contracts with employers are usually reviewed by the agent, but it is still the parents ultimately responsibility in the end. Legal papers include I-9 and W-4 documents related to employment. Be sure to have the appropriate documents available on set and complete W-4’s accurately.

If you don’t understand something, ask an expert. Sometimes BizParentz can help, sometimes it is wise to hire an entertainment attorney. As your guardian of your child’s business, it is your job to learn what you can, and know when to call in the experts! Signing contracts that affect your child’s future is a very serious thing!

Making Sure Your Child Has an Education

In all 50 states, it is required that a child attend some sort of school. State laws vary, but choices could include public school, private school, home school programs, charter schools, etc. Pursuing an entertainment career should never mean sacrificing your child’s education. If you child is successful in the industry, they will need an education to be able to handle their success as adults (contracts, etc), and if they decide to grow into another career they will need an education outside of showbiz. Do not think that a trip to Hollywood means a vacation from school. You could end up being charged with truancy! Make sure you are making good choices that are right for your child’s learning style and that you are legally schooling according to the laws of your state. Schooling on set is law in California, a requirement in most union contracts, and it is always negotiable even in places where education is not required.

Protecting Your Child’s Image and Privacy

No one cares about your child’s future more than you do. There is one thing you cannot get back once it is gone…your child’s privacy. It is the parent’s responsibility to market them (or supervise the marketing) appropriately and to make sure your child is safe from predators. A good rule of thumb is to consider, “How will my child’s daughter feel if they saw this in 30 years?”. This means being conservative in where you put your child’s picture on the internet. It means carefully considering the kinds of roles you choose to allow your child to do (this isn’t the agent’s responsibility—it is yours!). You are the guardian of your child’s future.