@Yero, directors and designers are not independent contractors.
An independent contractor is defined as someone paid on a 1099 instead of a W2. I have worked in finance, HR, and payroll for producers and professional theater companies for my entire career, and they have always been treated as independent contractors (no taxes deducted, no employer provided health insurance, they don't receive unemployment or workers comp benefits, and they own their work). While I was at one company, that actually caused a lot of problems for SDC because some of their directors claimed unemployment or workers comp and they were denied because they were not employees. I don't know how those issues were resolved, if they ever were.
The problem is that the theater industry predates tax law, so many of the job roles that exist in theater do not fit cleanly into one category or the other. But at the end of the day, legally, an employee is someone paid on a W2 and an independent contractor is someone paid on a 1099. If the government tells you no, that person is actually an employee, then you have to start paying them on a W2.
They don't receive insurance coverage directly from the producer, but the producer does make payments into their respective unions' health funds. For instance, the producers currently pay an initial fee of $2100 and a weekly payment of $220 into SDC's health fund for directors and choreographers and for their pension it's an initial payment of $2163 and a weekly payment of $215.
That is true, and part of why SDC had those issues I alluded to. Legally, they should not be a union and should not be providing health insurance. However, they are and they do, and they probably have been since before current tax laws.
It is very complicated, and part of what I spend most of my days dealing with. Frankly, I'm glad it is so complicated, or I wouldn't have a career!
Nothing matters but knowing nothing matters. ~ Wicked
Everything in life is only for now. ~ Avenue Q
There is no future, there is no past. I live this moment as my last. ~ Rent
"He's a tramp, but I love him."