An Introduction to Film Union Deposits
The unions in the film industry are set up to protect the workers’ rights in the field. One of the central rights is to be paid on time. Film union deposits were initiated to hold producers accountable and protect the payment of the cast and crew in case of default. This creates a roadblock in gaining funds from film financiers, but bondit media has come up with a solution to counter it.
Take a look at what the union deposit entails and what the film financing companies need to do.
Union Deposits – What The Film Financiers Need To Know
The payment deposits to be made with the film unions or guilds will vary. Mostly, it is a portion of the basic bay and an amount for benefits, taxes, etc.
The IATSE requires the film financiers to deposit the crew’s payroll and cast for up to two weeks and an additional amount for fringes or benefits and taxes. The SAG-AFTRA has a more complicated setup where a certain percentage of the salary needs to be deposited.
For SAG, it is 40% of the first $100000 to be paid in basic pay and 13.15% in other related expenses such as health, pension, and more. An additional payment may also be required to cover other fringe benefits and overtime.
These deposits are not necessarily used to pay the talent. It is kept as security if the producer defaults and the funds will be used.
How Can You Get The Deposit Refunded?
You can get the deposit back after the end of the film production. A formal application may be needed in some cases, while in others, the payment is refunded on its own. IATSE allows you to get a refund to pay the previous week’s salaries, but you must submit a formal request to the union representative.
End Note – How BondIt Media Is Helping The Film Financing Companies
BondIt media has devised a solution to help the producers by acting as film financing companies. The media group will pay the deposit payment on behalf of the producers to the unions. When the payments for the cast and crew have been cleared, BondIt media will take the refund from the union.
The media company will be the film financiers and help smooth cash flow for the film’s duration. However, there is a price of 11.25% of the total deposit that producers will have to the film financiers.
The film union deposits are formed to protect the rights of the talent, including the right of payment. So, as a producer, you will have to pay the due amount as security to continue with a streamlined production of the film.
