What a weekly payroll cycle looks like
- Crew submit time cards at the end of the week; the payroll accountant checks them against the daily production report.
- Time cards go to the payroll company, which calculates overtime, meal penalties, and union premiums.
- The payroll company sends an invoice for gross wages plus fringes and fees.
- Production wires the funds.
- Checks or direct deposits go out, and union benefit reports are filed.
The invoice, worked out
For a week with $86,000 in gross wages, using the payroll company's quoted rates for a non-union crew in one state:
| Line | Rate | Amount |
|---|---|---|
| Gross wages | $86,000.00 | |
| Employer FICA (Social Security and Medicare) | 7.65% | $6,579.00 |
| FUTA and state unemployment (quoted combined) | 3.50% | $3,010.00 |
| Workers' comp | 2.80% | $2,408.00 |
| Handling fee | 0.75% | $645.00 |
| Funding required | $98,642.00 |
The 7.65% FICA rate is set by the IRS (6.2% Social Security plus 1.45% Medicare). The other rates here are sample quotes; yours will depend on the states, the unions, and the company. Total fringe load: 7.65 + 3.50 + 2.80 + 0.75 = 14.70%, and $86,000 x 1.147 = $98,642.
Start paperwork is where it begins
Nobody gets paid without start paperwork: the deal memo, I-9 identity documents, W-4 and state withholding forms, and union forms. For people paid through a loan-out company, the payroll company collects the loan-out's documents instead. Late or missing paperwork is the usual reason a crew member's first check is late.
Budget and cash flow
Payroll companies usually require funding before they release checks, so payroll appears in the cash flow schedule one week ahead of when crew actually receive it, and some require a deposit at setup. Their quoted rates also become the fringe setup in the budget; see fringes. If the production works in several states, get rates for each state, since unemployment tax and comp rates differ.