Film production payroll is complex. Even veteran accountants face unique challenges in production accounting. While similar to regular payroll, film production payroll has elements you won’t find anywhere else.
Here are our answers to your questions about film production payroll.
How is film production payroll different from regular payroll?
There’s a few big ways in which film production payroll differs from regular payroll.
The first of which is in the repetitive nature of onboarding and off-boarding works because each production operates on a per-project basis. Meaning once the final cut of the film is in, or in the case of TV if the last episode has aired, most of the cast and crew have already left the production and moved on to new projects.
Even if that new project a crew member joins is with the same studio and working with the same accounting team as the prior project, all of the same paperwork requirements would need to be filed again for that crew member to get properly onboarded with the new project.
The other significant difference between film production payroll and regular payroll is the presence of unions. Many industries are unionized, but in film production payroll the presence of four different unions along with all the guilds which could be involved on job adds many layers of complexity to contracts which affect the way pay is calculated.
These unions have different needs, expectations, and payment requirements. One of the major selling points of film production payroll services is their union expertise.
What are the essential components of film production payroll?
Running film production payroll has a few essential steps that must be followed. A good production payroll company will help with this, and may even automate parts of the production accounting process.
There’s 5 main components:
⒈ Collect the necessary documentation
Film production payroll runs on documentation and ensuring the correct forms are filled out and submitted. This is typically referred to as “start work.”
The start work you’ll need varies depending on the state.
The typical production payroll accounting start work packet contains the following items at minimum:
The production accounting office needs to collect and keep these on file.
⒉ Maintain record discipline
You need to maintain accurate record-keeping to stay tax compliant. The IRS is notoriously unforgiving about lost records.
Ideally, your film production payroll services should help. Especially if your film production payroll company is an all-in-one software solution, like GreenSlate.
Going paperless makes it easier to back up records. You don’t want a burst pipe in the production accounting office ruining your day.
Yes, anything can happen.
⒊ Manage timecard collection
The big names (star, director) will be paid a lump sum, but most crew work hourly. That means the production accounting office needs to collect their timecards to track their hours, overtime, and legally mandated breaks.
It may (not?) surprise you to learn that you can still find actual paper timecards on some film sets. Obviously, this isn’t the ideal way to work in 2024.
Instead, we strongly encourage you to seek out film production payroll companies that use digital timecards, like GreenSlate.
Once filled out, GreenSlate’s digital timecards automatically go to the appropriate office for approval before being entered into the system for you.
No need to worry about losing random slips of paper or deciphering an extra’s messy handwriting. Digital time cards don’t just save you time, they can save you money lost to costly errors.
⒋ Payout fringes
“Fringes” is the production payroll accounting term for the additional costs involved in paying people beyond their actual salaries. Payroll taxes, union dues, and insurance like workers' compensation are all bundled under the heading of “fringes”.
One advantage of using production payroll services is that they can automate the process for you. They have deep institutional knowledge of the production fringe fees and will save you time by adding it for you.
The three main fringes are workers’ compensation, union dues, and payroll taxes.
Here’s a quick look at each.
✔️ Workers’ compensation insurance
Your production accounting office will handle general liability, production, and completion bond insurance. Film production payroll, on the other hand, manages worker’s compensation insurance.
Worker’s compensation policies protect your cast and crew from job-related injuries. Most states require it by law. Even without the legal requirement, it is considered best practice to have worker’s compensation.
➡️ Read more about workers’ compensation.
✔️ Union dues
Union dues are monies employees owe their unions. The unions use them to fund operations, fill pension funds, and help with health insurance costs for their members.
The employee pays the union, but it’s often the film production payroll offices that issues the actual check.
Think of it like paying social security tax. Instead of having employees do the math and write checks to the government, you deduct the correct amount from their paychecks and do it for them.
Union dues operate the same way. Think of them as taxes due to the guilds. Include them in your budgets when you start the production accounting process.
If union agreements aren’t in place when a production starts, it can cause headaches. Here’s how to avoid that.
✔️ Payroll taxes
All of the above elements are important, but this is what the IRS cares most about. And as we mentioned earlier, they are not a forgiving bunch. They’re expecting the usual payroll taxes like social security and Medicare. Disappoint them at your own peril.
This is a fairly straightforward process. Any reputable film production payroll company will handle this for you without issue.
⒌ Get everyone paid
The IRS may prioritize payroll taxes, but your crew cares about getting paid on time. If you can’t pay them, you won’t have a crew for long.
Make sure your film production service has a reputation for prompt work and on-time disbursement of funds.
What does a film production payroll company do?
The good news is that your production accounting office doesn’t have to do all of the work mentioned above. You just need to know how to find the best film production payroll company for your needs.
This is especially true for union productions, which add another layer of complexity. If yours is a union production, it's absolutely vital to work with a film production payroll service.
Film production payroll companies specialize in these issues. They have encyclopedic knowledge of state laws and union requirements. Their staff is experienced in processing large batches of time cards and distributing funds quickly.
Ideally, though, what you want from a film production payroll company is an all-in-one accounting software platform like GreenSlate. GreenSlate’s innovative software makes every aspect of film production payroll more efficient and allows you a better use of your time.
Our platform handles film production payroll, with easy-to-fill startwork, digital timecards, and self-service access for employees.
As if that weren’t enough, it can seamlessly communicate with our production accounting software. The entire production accounting process is now finally in one app.
✅ Schedule a demo today to get more answers to your film production payroll questions and discover why our clients love using our innovative solution.
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