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In the latest Inside Indies, host John Cooke offers a concise and informative breakdown of the financial considerations indie filmmakers need to understand when working with SAG-AFTRA talent. While hiring union actors can elevate your production in numerous ways, it’s essential to be aware of the associated costs before cameras roll.
“Working with SAG-AFTRA talent can bring significant benefits to a film production, including enhancing its reputation, attracting investors, and securing distribution opportunities.” These advantages are particularly important for independent filmmakers looking to make a mark in a crowded marketplace. However, those benefits come with budget implications.
“Scale pay is the minimum wage set by SAG-AFTRA, which can increase but not decrease.” This means producers must meet specific wage requirements that are non-negotiable. On top of scale pay, there are other mandatory costs. “Productions also cover fringe benefits, meaning health and pension contributions, taxes and agency fees of typically 10%.” These expenses must be factored into early budgeting stages to avoid surprises.
To protect the interests of union talent and ensure financial stability throughout the production, “a performance bond ensures timely payment to union talent, and adherence to meal and rest breaks is required to avoid penalties.” Missing these break requirements can create a poor working environment, and it can result in financial penalties that impact your bottom line.
Cooke also notes several other expenses that often fly under the radar: “Additional costs may include overtime, wardrobe, travel, hold days, liability insurance, and a potential residuals reserve.” These variables depend on the production’s needs, schedule, and cast agreements.
For filmmakers ready to take the next step, Cooke advises: “The next step is selecting the right SAG-AFTRA agreement and applying to become a signatory.”
Watch the full conversation above or listen to the podcast to navigate the union process with clarity and confidence. And if you’re budgeting a union production and want help decoding the details, reach out to John Cooke here for expert guidance and support.
Ready to run union compliant payroll? Reach out today!
