Understanding IATSE Fringe Rates
Behind every successful production is a well cared for crew. Fringe rates play a key role in ensuring your team is happy, healthy and ready to roll. The International Alliance of Theatrical Stage Employees (IATSE) represents many crew members in protecting their members rights, advocating for fair wages and better benefits.
When budgeting for a production, it’s crucial for producers to account for fringe rates in addition to crew wages. Fringe rates cover essential crew members benefits such as health insurance, pension and health benefits.
In this blog, we will explore key aspects about fringe rates including what fringe rates are, how to calculate, and various components that affect fringe rates such as project type and location. Understanding how to properly budget for your crew will ensure your production is set for success.
What Are IATSE Fringe Rates?
IATSE fringe rates refer to the additional costs that production companies must pay when hiring crew members who are covered under IATSE. These fringes include benefits such as health insurance, pension contributions, and other contractual obligations. The fringe rate is typically calculated as a percentage of the crew member's wages and ensures that crew members receive comprehensive benefits while allowing productions to remain in compliance with union standards.
Several factors influence how producers calculate the total fringe rate for their crew, including:
Type of employee (union or non-union)
Number of loan out companies vs. W-2 employees
| Loan Out Companies A loan out company is established to lend out their services to third parties under contract terms. In particular for film productions, their services may include for example camera crew. If productions would like to hire their camera crew for their project, they would need to hire through the loan out company and comply with their contract. While loan-out companies are only subject to workers' compensation and handling fees, it's essential to understand why this matters for budgeting and compliance. These fees are typically lower than the full range of fringe costs associated with directly hired employees, making loan-out companies a cost-effective option in certain scenarios. However, producers must ensure proper compliance with tax and labor regulations when hiring crew through loan-out companies. This includes verifying that the loan-out company is properly incorporated, ensuring that all payments are reported accurately, and maintaining detailed records of transactions. |
Total amount of overtime
Total number of hours worked
Time of the year wages are paid
Location of production
Overall budget.
For commercial productions, calculating fringe rates is based on the crew’s gross wages and the factors listed above. Below, we’ll break down key components that determine how fringe rates apply:
1. Payroll Taxes and Workers Compensation Insurance
This compensation includes FICA (Social Security & Medicare), FUI (Federal Unemployment Insurance), SUI (State Unemployment Insurance), and workers compensation insurance. This applies to all employees and is calculated as a percentage of wages paid.
2. Union Benefits
Union benefits are specific to union members and vary depending on the union and local. The benefits are calculated based on the wages of the union member.
3. Producers Health Benefit Plan (PHBP) Contributions
This contribution applies to commercials only and applies to the Association of Independent Commercial Producers (AICP) members who have also signed PHBP.
Fringe rates are critical for compliance with union rules and regulations. Failure to follow these rules can result in significant consequences, including added penalty fees, union grievances and claims, and even production delays. To calculate fringe rates accurately, producers need to total all the applicable costs and divide this total by the employees’ gross wages. By carefully considering all the factors that influence fringe rates, producers can create an accurate budget and avoid unexpected financial bumps along the way.
Fringe Rates by Geographic Location
The location of your project is another crucial component that will impact fringe rates, with significant differences between states like California and New York.
Below, we will break down fringe rates estimates based on location. Keep in mind that these figures provided are estimations only. Total fringe rates for any production are determined after payroll is processed.
California Fringe Rate Estimates for Commercials – 2024
Payroll Tax and Fee Breakdown
Payroll and taxes and fees are 24% for all employees except loan outs.
Pension Rates:
| DGA | Pension is based on the percentage of gross wages (AICP sideletter may apply) and is approximately 22%. Pension and health is based on the following: - 2.5% EE Pension (can be deducted from director fee) - 10.5% Health - 8.5% Pension - 0.25% Qual/Training (TQL + DGA Training) - 0.40% CIAF - 0.25% Diversity |
|---|---|
| PHBP | Crew members working under the PHBP category receive 10% of their gross wages. |
| IATSE | Approximately 23% – 33%: PH&W for IATSE members are based on two factors: $13.1475 x hours worked (or guaranteed) + scale rate x hours worked (or guaranteed) x 6% (eff. 8/4/24) + $0.45/hr. CIAF (eff. 10/1/24) |
| Local 600 | Approximately 23-33%: PH&W is based on the following formula: $13.1475 x hours worked (or guaranteed) + $0.75 x per day worked + hours worked (or guaranteed) x scale rate x 6% (eff. 8/4/24) |
| Local 399 | Approximately 23-33%: PH&W is based on two factors: $11.7275 x hours worked (or guaranteed) + scale rate x hours worked (or guaranteed) x 6% (eff. 1/29/23) + $0.45/hr. CIAF (eff. 10/1/24) |
Loan Out Companies
Crew members paid under loan out companies are only subjected to workers compensation and handling fee only.
Low Budget and PSA
Crew rates are negotiable for low budget projects and PSA projects, however their benefits are based on scale.
California Fringe Rate Estimations for Music Videos – 2024
Payroll Tax and Fee Breakdown
Payroll and taxes and fees are 23% for all employees except loan outs.
Pension Rates:
| Music Video Tier 1 | Non-union, no pension & welfare: Only payroll taxes would apply. |
|---|---|
| Music Video Tier 2 and 3 | IATSE: • $9.7075/hrs. worked (eff. 8/4/24) • 6% (rate x hours x 6%) (negotiated rates for Tier 2, scale rate for Tier 3) • P&W estimate range is 19% – 29% 399: • $9.5575/hrs. Worked (eff. 8/4/24) • 6% (scale rate x hours x 6%) • P&W estimate range is 20% – 30% |
| Music Video Tier 4 | IATSE: • $13.2975/hrs. worked (eff. 8/4/24) • 6% (scale rate x hours x 6%) (commercial scale rates for Tier 4) • P&W estimate range is 19% – 29% 399: • $13.1475/hrs. worked (eff. 8/4/24) • 6% (scale rate x hours x 6%) • P&W estimate range is 20% – 30% |
Loan Out Companies
Crew members paid under loan out companies are only subjected to workers compensation and handling fee only.
New York Fringe Rate Estimates for Commercials – 2024
Payroll Tax and Fee Breakdown
Payroll and taxes and fees are 27% for all employees except loan outs.
Pension Rates:
| DGA | Pension is based on the percentage of gross wages and is approximately 29%. |
|---|---|
| PHBP | Crew members working under the PHBP category receive 10% of their gross wages. |
| Locals 52, 161 and 600 | Approximately 27%: PH&W is based on the following formula: $17.514 x hours worked + hours worked x scale rate x 6% (eff. 3/24/24) (+ $0.75/day for 600) + $0.40/hr. CIAF for Local 52 (eff. 12/1/23) + $0.45/hr. CIAF for Local 161 & 600 (eff. 10/1/24) |
| Local 764 and 798 | Approximately 27-30%: PH&W for Local 764 or 798 member employees is billed at $191.00 (eff. 10/1/24) per day worked + $0.45/hr. CIAF (eff. 10/1/24) |
| Local 817 | Teamsters - PH&W is based on a percentage of gross wages, billed at 32% + 0.35% CIAF (eff. 3/1/22) Location - IAP of 6% plus $17.514 per hour worked, plus 2% of gross (eff. 3/24/24) + $0.35/hr. CIAF (eff. 3/1/24) |
| Local 829 | Approximately 23-30%: PH&W for Local 829 is based on 3 factors: $79.00 per day for Pension + $79.00 per day for Welfare (eff. 8/1/24) + Hours worked x scale x 3% + $0.45/hr. CIAF (eff. 10/1/24) |
Loan Out Companies
Crew members paid under loan out companies are only subjected to workers compensation and handling fee only.
Midwest Chapter and Other Fringe Rate Estimates for Commercials – 2024
Payroll Tax and Fee Breakdown
Payroll and taxes and fees are 25% for all employees except loan outs.
Pension Rates:
| Local 476 Midwest Chapter (Chicago) | Annuity: $24.92/day H&W: $8.25/hr. Pen.: $4.15/hr. T&T: 0.25% Legal & Education: $0.50/hr. |
|---|---|
| Local 769 (Illinois) | Annuity: $8.36/day H&W: $9.65/hr. Pen.: $4.25/hr. T&T: 0.15/hr. CIAF: $0.45/hr. (eff. 10/1/24) |
| Locals 784 (San Fran.) | PH&W: $174/day CIAF: $0.45/hr. (eff. 10/1/24) |
| Local 812 (Michigan) | PH&W: $189/day CIAF: $0.45/hr. (eff. 10/1/24) |
| Local 38 (Michigan) | PH&W: $189/day CIAF: $0.45/hr. (eff. 10/1/24 |
| Local 720 (Nevada) | Health: $122.71/day Pen.: 8% CIAF: $0.45/hr. (eff. 10/1/24) |
| Local 481 (New England) | PH&W: $174/day CIAF: $0.45/hr. (eff. 10/1/24) |
| Local 487 (MC and DC) | PH&W: $174/day CIAF: $0.45/hr. (eff. 10/1/24) |
| Locals 209, 336, 42, 477, 478, 479, 480, 484, 7, 85, 88, 89, 90, 91, 92, 93 and 95 (Midwest) |
PH&W: $174/day CIAF: $0.45/hr. (eff. 10/1/24) |
Loan Out Companies
Crew members paid under loan out companies are only subjected to workers compensation and handling fee only.
Fringe Rate Changes & Updates
Fringe rates will change due to new union agreements or legislative updates, making it essential for producers to stay informed. Regularly reviewing IATSE rate sheets ensures accurate budgeting and helps avoid unexpected costs. To stay in the loop, we suggest checking IATSE for the latest updates and guidance, and tune into our podcast for expert insights and industry trends.
Conclusion: Calculate Fringe Rates with Ease
Behind every successful production is a crew whose well-being is supported through thoughtful planning and budgeting. Fringe rates play a critical role in ensuring crew members receive essential benefits, such as health insurance, pension contributions, and other protections that contribute to their overall job satisfaction and performance.
Fringe rates are a commitment to compliance with union standards and a safeguard against potential production hurdles like grievances, penalties, or delays. By understanding what fringe rates are, how to calculate them, and the factors that influence them, producers can create realistic budgets that account for everything from union agreements to geographic location and project type.
Need help calculating fringe rates?
CMS Productions is a third-party union signatory signed directly to the AICP Teamsters 399 (LA) and 817 (NY) agreements as well as several IATSE contracts and can service on most productions.