The Film Payroll Accountant and the Payroll Service
October 12, 2014 Leave a comment
The Film Payroll Accountant calculates the gross amount of payroll due to the employee after calculating the three producer sins – overtime, rest violations and meal penalties. To perform this task the Film Payroll Accountant must know where to find the rules and regulations for each of the guilds and unions in the film production industry. Hmmm. If that’s the case, what does the entertainment payroll service do? Actually, quite a bit…
DEDUCTIONS, CONTRIBUTIONS AND REMITTANCES
The Film Payroll Accountant only needs to have a peripheral knowledge of the multiple government and union deductions, contributions and remittances. All of those complications are handled by the entertainment payroll service. Yup, all of those complicated letters on your W2, as well as all the Union or Guild deductions, contributions and remittances are all taken care of by the entertainment payroll service.
THE PAYROLL SERVICE IS THE EMPLOYER OF RECORD
Per IRS Regulations an Employer must keep records for a minimum of 7 years. Film and television producers do not want a potential problem obligation hanging over their heads for that long. As a result, a demand grew in the 1980’s for a payroll company to take on the legal title of “Employer of Record”. Subsequently the ‘entertainment payroll service’ became the legal Employer, relieving the Producer from all IRS, Workers Compensation and Union/Guild audits.
WHO ARE THE ENTERTAINMENT PAYROLL SERVICES
There are currently 4 major payroll services:
- Entertainment Partners, the first and most well established with the Majors
- Ease Entertainment, the most modernized
- Cast & Crew, has recent change of ownership; still “a contender”
- Media Services, well established in the commercial and reality television world.
Each of these entertainment payroll services has developed their own systems to process payroll as the “Employer of Record”, and each has designed their own proprietary general ledger software. The entertainment payroll service supplies their general ledger software for free if the production uses their payroll service. (Note: the general ledger software for each of the major payroll services has a similar look-and-feel.)
FILM PAYROLL ACCOUNTANT’S ROLE
However, and here’s the rub, the payroll service is depending on the Film Payroll Accountant to submit the timecards calculated to “Gross” per the various Union/Guild rules and regulations. And, THAT makes the Film Payroll Accountant the one who must be expert at applying the union and guild rules related to payroll.
We spend a full weekend practicing how to apply the film payroll rules for SAG, DGA, IATSE Area Standards, IATSE National Low Budget and Teamsters. See http://www.talkfilm.biz/filmworkshops6.htm for more information.
Cheers / John