Perhaps the most basic distinction between an entertainment payroll company and other kinds of third-party payroll services is that an entertainment payroll firm is typically an “employer of record” for the production company. This means that in addition to processing paychecks, the payroll company is responsible for making payments on all payroll taxes, unemployment and workers’ compensation insurance.

In addition to acting as employer-of-record, an entertainment payroll company focuses on concerns specific to the film, television and commercial production industries. This includes following all wage and hour laws particular to the entertainment business. The California Wage Order for the Motion Picture Industry differs in significant ways from the state’s wage orders for the transportation and agricultural industries, for example. Overtime rules, meal periods and penalties are defined specifically for entertainment workers. For union productions, it is essential that the payroll company be well versed in the contracts of the many union locals and guilds that serve the entertainment employee community. Collective bargaining agreements lay out minimum wage scales and working conditions for each member of a production’s crew and talent staff. The rules can vary widely from one entertainment local to the next.

Of even greater importance to entertainment workers and their unions is that the payroll company understands the contribution rates for pension, health and welfare funds, and that it has a system in place to make those contributions in a timely and accurate way. Often, independent productions will negotiate “one-off” deals with unions; these individual agreements may allow better terms than the collective studio agreement, but the unions will want to be assured that a capable entity is going to take responsibility for making benefit contributions. In many cases, that means working with a payroll company with a solid history of union contributions.

 

What specific services does an entertainment payroll company provide?

Paying Employees

The most basic service of any production payroll company is paying your cast and crew members, either by check or direct deposit. The company will usually provide you with an “edit” -- a report of all the paychecks to be sent out -- prior to printing checks. Once the edit is approved, paychecks are printed and distributed either by mail or pickup. Media Services has a maximum 48-hour turnaround policy from submission of time cards to delivery of the edit. Often the edit is ready much sooner.

Deducting and Withholding Taxes

The payroll service withholds all required federal, state and local income taxes for employees, as well as any other deductions required by law.  The payroll company makes all employer tax contributions, and handles all year-end reporting. For any payroll processed by Media Services, we keep all records on file and easily accessible to handle any future audits for the production company.

Paying Federal and State Unemployment Taxes

Every employer is responsible for paying Federal Unemployment Insurance (FUI) and State Unemployment Insurance (SUI). This contribution takes the form of a percentage rate that is applied to all payroll processed. FUI rates are the same throughout the country, while SUI rates are determined by the state and the employer’s unemployment history in that state. 

Child Support and Garnishments

Your entertainment payroll service is required to withhold all tax levies, child support or wage garnishments from an employee’s check, as directed by the IRS, District Attorney or State Department.

Union and Guild Contributions

Above-the-line and below-the-line employees are paid according to their collective bargaining agreements, or according to wage-and-hour law in the case of non-union productions. All applicable union, guild and trust fund payments are reported and paid according to their agreements.

Keeping Payroll Records

The following information should be kept by all employers:

• Employee’s name, Social Security Number, address, occupation, sex, and birth date

• Hour and day when workweek begins

• Total hours worked each work day and each workweek

• Total daily or weekly straight-time earnings

• Regular hourly pay rate for any week when overtime is worked

• Total overtime pay for the workweek

• Deductions from or additions to wages

• Total wages paid each pay period

• Date of payment and pay period covered

Media Services can help you determine your crew members’ regular hourly rates based on hours worked. We will calculate all overtime pay based on the provisions of the employees’ bargaining agreements and applicable state/federal law.