Understanding Commercial Talent Payroll

Handling SAG-AFTRA talent payroll goes beyond simply cutting a check. The process is grounded in detailed contract terms that ensure fair and accurate compensation for both principal actors and extras. Catie Colucci and guest speaker, Boryanna Marquez from ART Payroll help producers, brands and agencies navigate these complexities by providing payroll, business affairs, and compliance services that keep projects aligned with union standards.

Here’s a closer look at some of the critical areas we covered in our discussion.

Key Topics From the Episode

1. The SAG-AFTRA Commercial Contract

   The SAG-AFTRA commercial contract specifies categories for performers, like principals, extras, stunt performers, and voiceover talent, each with different rates and guidelines. These categories influence how actors are hired and paid. Understanding these classifications is crucial, as it directly impacts payroll estimates and budget planning.

2. Calculating Talent Rates

   In the episode, Boryanna explains how ART Payroll calculates session fees, overtime, night premiums, and more based on each performer’s category. We discuss scenarios that might require adjustments to talent rates—such as travel, hazardous work (like smoke or water scenes), or wardrobe requirements—and how these factors impact a project’s budget.

   Pro Tip: If you're unsure about a performer’s category, it’s typically easier to start by hiring them as an extra. This way, if they need to be upgraded to principal status, it’s a simpler adjustment.

3. Supplemental Fees and Pay Adjustments

   Beyond the base session rate, several supplemental fees might come into play, including:

   • Travel costs for work outside standard studio zones.

   • Hazard pay for roles involving physical risk (like stunts or extreme weather).

   • Wardrobe fitting fees for specific costume requirements.

   These elements, often overlooked in the initial budgeting process, can add up quickly, making it essential to factor them in from the beginning.

4. Exclusivity and Holding Fees

   Exclusivity clauses can restrict performers from working with competitors in specific product categories, such as telecommunications or consumer electronics. Holding fees are an additional cost producers pay to keep performers exclusive for a set period. Boryanna emphasizes the importance of paying holding fees on time, as failing to do so could allow the performer to work for competitors—something no brand wants to deal with unexpectedly.

5. Payroll Taxes, Pension and Health Contributions

Since the SAG-AFTRA contract requires talent to be paid through a payroll service, it’s critical to understand the additional costs. These include pension and health contributions, payroll taxes, workers' compensation, and agency fees. Each of these factors must be carefully documented and accounted for, which ART Payroll manages seamlessly for clients to avoid compliance issues and claims.

Why a Payroll Service Matters

The SAG-AFTRA contract mandates that performers be paid through a qualified payroll service, which ensures tax compliance and correct allocation of pension and health contributions. Working with a payroll service like ART Payroll helps streamline this process and allows producers and agencies to focus on the creative and logistical aspects of the project without getting bogged down by complex union compliance issues.

Looking Ahead

With a new SAG-AFTRA Commercial Contract on the horizon in 2025, Boryanna and Catie remind listeners to plan for potential rate increases and new rules. As the contract evolves, ART Payroll and CMS Productions will be ready to support clients with updated guidance, making sure they stay compliant while managing payroll effectively.

If you're a producer or advertiser looking to learn more about the world of union productions, make sure to subscribe to the podcast and stay tuned for upcoming episodes. You won't want to miss the inside tips and expert advice we have in store!