Talent agency filing taxes from money made on a movie, but W2 was given to client?

azhiajanay · Jun 6, 2019 5:40:13 AM

Hi all - We are a small talent agency and our clients have gotten booked on a number of movies this year. The check was addressed to both us and the client. We cash the check, and expense out the client their part, and keep our agency fee. The W2 goes to the client of course, but we send out the 1099 to the client that we expense out to them. Is this the correct way to do it? We feel like we are missing something b/c the client's W2 would say they made $12,000 for instance but in actuality they only made $10,000 because $2,000 is for management. But then we send out a 1099 for $10,000? Any advice would be greatly appreciate!