(a) (1) Notwithstanding Sections 606.5 and 678, for the purposes of this code, âemployerâ means any employing unit that is a motion picture payroll services company that pays and controls the payment of wages of a motion picture production worker for services either to a motion picture production company or to an allied motion picture services company, and files a timely statement of its intent to be the employer of motion picture production workers pursuant to subdivision (b). (2) Notwithstanding Sections 606.5 and 678 and paragraph (1), solely for the purpose of remitting employment taxes under this code, and any related obligations arising therefrom under this code, including, but not limited to, this division and Division 6 (commencing with Section 13000), a loan-out company is the employer of the employee-owners or members who are engaged by the loan-out company to provide services to a motion picture production company or an allied motion picture services company. (3) For purposes of this code, and consistent with paragraph (2), neither a loan-out company nor an individual whose services are provided by a loan-out company shall be considered an employee of the motion picture payroll services company. (b) (1) Any employing unit meeting the requirements of a motion picture payroll services company that intends to be treated as an employer of motion picture production workers pursuant to subdivision (a) shall file a statement with the department that declares its intent to be the employer of motion picture production workers, pursuant to this section, within 15 days after first paying wages to the workers. The statement shall include identification of each affiliated entity. (2) Any employing unit operating as a motion picture payroll services company as of January 1, 2007, that intends to be treated as an employer of motion picture production workers pursuant to this section, shall file a statement with the department that declares its intent to be the employer of motion picture production workers, pursuant to this section, by January 15, 2007. The statement shall include identification of each affiliated entity. (3) Any motion picture payroll company that quits business shall: (A) Within 10 days of quitting business: (i) File with the director a final return and report of wages of its workers, as required by Section 1116. (ii) File all statements required by this subdivision. (B) Forty-five days in advance of quitting business, notify each motion picture production company and allied motion picture services company, with respect to which they have been treated as the employer of the motion picture production workers, of its intent to quit business. (4) The director may prevent a motion picture payroll services company that fails to file a timely statement from being treated as an employer of motion picture production workers, for a period not to exceed the period for which the statement is required. (5) Any statement filed by a motion picture payroll services company pursuant to this subdivision shall be applied to each affiliated entity of the motion picture payroll services company in existence at the time the statement is filed. (c) For each rating period beginning on or after January 1, 2007, in which an employer operating as a motion picture payroll services company obtains or attempts to obtain a more favorable rate of contributions under this section in a manner that is due to deliberate ignorance, reckless disregard, fraud, intent to evade, misrepresentation, or willful nondisclosure, the director shall assign the maximum contribution rate plus 2 percent for each applicable rating period, the current rating period, and the subsequent rating period. Contributions paid in excess of the maximum rate under this section shall not be credited to the employing unitâs reserve account. (d) (1) On and after January 1, 2007, whenever a motion picture payroll services company creates or acquires a motion picture payroll
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