Businesses often find payroll complex, but it gets even trickier for film production businesses!
Film production is not tied to a particular location or team – the people and places always change and this in turn affects their payroll systems.
Adapting to these changes can make payroll processing complicated, particularly due to the changes in tax, wage and labour laws of each new location.
If you’re starting in this industry, even with the smallest crew, you must be aware of these complexities and be prepared to tackle them.
Let us take a look at 5 things you should know about payroll processing in the film production business
1. Payroll processing in Film is Cyclic
In normal companies and businesses, once the employee is onboarded, the payments are done on a regular basis without any further complications.
However, since film production is highly project-based, there is a continuous onboarding and offboarding of the cast or crew.
Because of this, new paperwork has to be filed each time a new person joins or even if an old crew/cast member joins for a different project for the same company.
This makes film production payroll a lot more cumbersome than traditional payroll in business.
2. Presence of Unions In Film Payroll
Unions in film work towards protecting the rights and interests of all the cast and crew members.
Each union has its own set of rules and regulations with regard to minimum wages and payroll processing which must be followed by the production companies.
Knowledge of these rules is essential to maintain compliance and make sure that all the cast and crew members are fairly compensated.
Some independent film productions may be denied collaborations if they fail to meet the criteria of particular unions.
Non-unionized productions have their payment policies, where payments can be negotiated or even increased with merit.
3. Timecard Collection
Timecards are used to record the number of hours a cast/crew member works in order to calculate their wages.
These records are collected by the production and this data is used by the accounting team or payroll software for payroll processing.
Earlier, physical time cards were used but now most production companies utilize digital time cards to streamline the process and save material costs.
Payroll companies use specialized accounting software to maintain digital timecards. By payroll outsourcing, production can eliminate major financial errors, maintain compliance and ensure timely payments to cast and crew.
4. Payroll Regulations Differ From State To State
Film production can encompass shoots in different locations spread all over the country. Each state has its own wage, labour and tax regulations.
The production company must take into account while processing payroll for cast and crew members who are part of the film project in a particular state.
It is important to be aware of the specific regulations in each state to avoid heavy penalties and legal consequences.
5. Record Keeping Must Be Followed Intensively
Missing a record or timeline might sound insignificant, but it can cause serious legal consequences.
The cast and crew members are required to keep proper records and file taxes on time in order to ensure legal compliance.
If the film production company utilizes a payroll service, members might be able to avail record-keeping features which can make this process easier.
It is also highly advisable to practice digital record-keeping as opposed to physical records for extra security.
Conclusion
With the several complications involved in film production payroll, the wise way out is to hire a specialized payroll service that deals with film production companies.
You can find them online or through recommendations from other people in the film industry.
