What is a SAG bond and why do I need to pay it?

A SAG bond (also known as a SAG "deposit") is a refundable deposit that is paid to SAG prior to the start of a production. The SAG deposit is usually equal to the amount of the estimated payroll for the first two weeks of the production PLUS the applicable SAG Pension and Welfare (P&W) contributions based on the calculated amount of payroll.

For example:

Week #1 estimated payroll:      $  35,000.00
Week #2 estimated payroll:      $  75,000.00
TOTAL ESTIMATED PAYROLL:   $  110,000.00

   X  15.3%  P&W =            $  16,830.00
TOTAL  SAG  DEPOSIT:    $  126,830.00

It is important to note (especially for first time producers) that the "SAG bond/deposit" is NOT the same as a "payroll deposit" that is paid to the payroll company. The SAG bond is held by SAG through the end of production and is released back to the production company once all of the Producer's obligations to SAG performers have been confirmed by SAG. The SAG bond is NOT used for payment to the SAG performers. It is merely held as "security" should the production company fail to comply with their SAG agreement. Please read the next question about the ABS Payroll Deposit so that you will understand how much actual CASH you will need IN ADVANCE prior to the beginning of any filming.

Is the ABS Payroll Deposit the same as the SAG (or other union) Bond/Deposit?

NO! NO! NO! - The ABS Payroll deposit is NOT the same as the SAG (or other union) bond/deposit which is usually collected by SAG (or other unions) prior to the start of a production. In other words and THIS IS REALLY IMPORTANT THAT YOU UNDERSTAND this concept:

You are actually "double-paying" a portion of your payroll in advance prior to any filming. THIS WILL AFFECT YOUR CASH FLOW SO TAKE THIS INFORMATION INTO ACCOUNT WHEN MAKING YOUR BUDGET OR GETTING FUNDS FROM YOUR INVESTORS!

Remember – you cannot use your SAG (or other union) deposit towards the actual payroll costs. That money will have to "sit there" for weeks after the production cycle is completed until SAG (or other union) releases it. You have to have enough CASH funds to cover both the SAG (or other union) deposit PLUS the "real/actual" payroll.

An ABS Payroll Deposit is an initial deposit that we collect (prior to the start of production) based on an estimate of what the total cost of the payroll will be. This estimate is calculated off of the total amount of gross payroll a production company expects to payout to their employees during the course of their project.

In addition to the "gross" amount of the estimated payroll, the deposit also includes the Employer Payroll Taxes, Workers' Compensation Insurance, SAG (or other union) Pension and Welfare Contributions, and any processing and administrative fees.

The ABS Payroll Deposit is collected IN ADVANCE of production and the funds are used to pay the performers and crew members. This is called a "draw down" deposit. As the payrolls are paid out, we "draw down" from the available funds (similar to a bank account). If the funds become too low, we will request additional funds from the production company.

At the end of production, any unused funds are returned to the production company along with a closing statement.

What is the current rate for SAG Pension and Welfare contributions for theatrical productions?

The current rate for new employee SAG Pension and Welfare (P&W) contributions is 15.3% of gross pay excluding non-pensionable items.

What is a SAG non-pensionable item?

A SAG non-pensionable item is an item of gross pay earned by the SAG performer for which SAG Pension and Welfare (P&W) is not calculated on. For example, if you had an employee who earned $100.00 for the day plus a wardrobe allowance of $11.50 (a non-pensionable item), the SAG P&W contribution would be $15.30 - ($100.00 x 15.3%). The pension contribution is NOT calculated on the wardrobe allowance portion of the employees' earnings. The following is a list of SAG non-pensionable items:

• Forced Call
• Late Payment Penalty
• Meal Penalty
• Mileage
• Reimbursements
• Wardrobe Allowance

What is a SAG non-commissionable item?

A SAG non-commissionable item is an item of gross pay earned by the SAG performer for which Agent Fees (commissions) cannot be calculated on. For instance, if you had an employee who required an Agent Fee of 10%, who made $1000.00 in regular earnings and $250.00 in meal penalties (a non-commissionable item), for a total of $1,250.00, the Agent Fee (commission) would only be $100.00 ($1000.00 x 10%) and not $125.00. The following is a list of SAG non-commissionable items:

• Forced Call
• Late Payment Penalty
• Living Expenses
• Meal Allowance
• Meal Penalty
• Mileage
• Per Diem
• Prop Allowance
• Reimbursements
• Rest Period Violation
• Turn-Around Pay
• Wardrobe Allowance

What is a SAG Exhibit G Form?

A SAG Exhibit G Form (also known as a "Performers Production Time Report") is the official form used by SAG to record hours worked by SAG performers. This form is a "daily" form and is signed by all cast members indicating their time worked each day on the production. See ours Forms page for a copy of the SAG Exhibit G Form

Who is responsible for making SAG Pension and Welfare (P&W) contributions?

The employer is always responsible for making SAG Pension and Welfare contributions. However, when using ABS Payroll Services, we do all of the necessary SAG P&W reporting and processing on your behalf. We make the necessary contributions to the P&W plans on behalf of the production company. It is important to know that this report must be "in balance" with the SAG Final Cast List Report if the production company wishes to get their SAG bond (SAG deposit) back in a timely manner.

Who is responsible for providing SAG with the "SAG Final Cast List"?

It is the responsibility of the employer to provide SAG with the SAG Final Cast List at the end of the production. This important report contains the performers' information such as name, address, social security numbers, and dates of employment as well as "pensionable" earnings. Many production companies try to do this report themselves and find that they have made errors primarily because they used the performers "total" salary instead of the performers "pensionable earnings". At ABS, we will prepare and submit your SAG Final Cast List and will make sure that your SAG Final Cast List is "in balance" with your SAG Pension and Welfare (SAG P&W) report so that you can get your SAG deposit back quicker.

When is payroll due at SAG?

For most feature films, payroll is due at the Screen Actors Guild the Thursday following the last day of the payroll week worked by a performer. The standard "studio week" is from Sunday through Saturday. At the beginning of the "new" week, the SAG paperwork is turned in to us, we create the payroll checks and they are delivered to SAG on each Thursday for processing. SAG then records the checks and they are mailed out to the performers by SAG.