Construction

Budgets are constructed in layers, with the financial plan as a whole condensed on the Topsheet — a 1–2 page summary showing broadly how much a film will cost and where money is to be spent. Each successive layer—Account, Detail, 4th Level—contains more specific details.

Fig. 4.2 A Budget Consists of Layers

“TAD4” is one way to remember the structure.

AKA: Topsheet is also known as the Top level or Summary of the budget, typically shown to potential investors who don’t necessarily want every detail.

Most budgets are several pages long. This multi-layered structure works like a zoom lens, allowing you to work at different perspectives inside and throughout on an as-needed basis. The Topsheet is like an Establishing Shot (the big picture), the Account Level a Medium Shot (who and what’s involved), the Detail Level is a Close Up (to input data for calculations). A 4th Level would serve as an Extreme Close Up.

For example, on this Topsheet for an ultra-low budget music video shot in one day on DV format, $500 is budgeted for the category of Wardrobe, Makeup and Hair.

Drilling down to the Account Level reveals more information, how that $500 will be allocated specifically. For this film, all department heads were paid the same—$200.

Fig. 4.3 Budget Construction Shows Data at the Level of Information Required, on an As-Needed Basis

The Account Level illustrates how one position is compensated compared to others, or people compared to equipment and expendables, but does not show all of the particulars.

Drilling down to the Detail Level shows how each dollar will be spent. The Head Hair Stylist is to be paid for prep and shoot time and for the use of his kit, adding up to $200.

Table 4.4

Budgeting software created specifically for filmmaking uses this layered approach, to integrate with other programs in their software suite, to help you work in the budget and for accounting purposes. When creating a budget on paper, or in Excel, you need only the Topsheet and Detail Level information, as shown in the following illustration.

Presentation

Budgets are private documents. Financiers, bankers, attorneys, sales agents, distributors, investors, the insurance company and stakeholders (who may be partners or team members) may see the Topsheet, but are not interested in every line item. Producers work with the entire budget and see it all. Key crew, like department heads, may be intimately familiar with the budget for their department, but none other. A printed budget displays the Topsheet and Detail levels only and suppresses accounts that are not utilized.

Fig. 4.4 Budget Print Outs Contain Topsheet and Detail Level

There are two reasons that budgets are not handed out, like candy, to anyone.

1. Crew and cast working on a film will be sensitive to what OTHERS are being paid and any perks that they themselves are NOT receiving. Pay disparities (no matter what the logical reason) create tension. It is not advisable to give the budget to everyone on the project.
2. Distributors, sales agents, producers reps and producers themselves—anyone involved with the sales or licensing of the film—may want to keep the budget private—it can affect the perceived value of the film—and ultimately the price that buyers, or licensees will pay for the right to exploit it. Even the iPhone-produced film Tangerine had a budget of $100,000. Filming costs money and often, people are surprised at the price tag simply because they don’t understand what it takes to create a film. Exceptions include the “Under-$15,000-Movie” used as marketing (Paranormal Activity, The Blair Witch Project, Mariachi) and when I produced a 4K micro-budget feature that was an immediate adaptation from the stage play (A Cat’s Tale) the price tag was a talking point in conjunction with the overall accomplishment because people were surprised we could produce a play and a feature at that price. Your team must decide: let the film speak for itself, or tell everyone your budget as a marketing hook.

The reality of certain indie feature success stories is that actual production budgets were made for mere thousands, but once a distributor or studio licensed or purchased the film, they spent hundreds of thousands to enhance it in post, for release into theaters or other distribution.

A full budget for presentation purposes, to work with your team members who require all the specifics, includes the Topsheet and Detail level, as in the following example.

Table 4.5 Topsheet

Table 4.6 Detail Level

Calculation

Budgets are constructed on a grid, demonstrating what specifically is budgeted for (the vertical axis) and how totals are calculated (the horizontal axis).

Table 4.7

On the HORIZONTAL axis, there are 5 equation components.

Table 4.8

To calculate the Head Hair Stylist’s wages for prep time:

Table 4.9

To calculate the Head Hair Stylist’s total wages for shoot time:

Table 4.10

The Head Hair Stylist will be paid for the use of his kit, at a flat rate.

Table 4.11

The total line is at the bottom of the entire wage for this crew member.

Table 4.12

There are two ways to pay cast and crew, shown at the detail level.

• Paying a flat rate, (Allow) for all the work to be completed by that person on the project, as defined by the total amount of time agreed upon.
• Paying connected to time increments— daily/weekly/hourly rates, hired to do tasks in the scheduled time, for agreed-upon wages.

Pay by Flat rate— one price.

Table 4.13

Pay by Time Increment: weekly, daily, or hourly rate.

Table 4.14

When paying by Time, there are 3 basic stages:

1. Prep (Preproduction, planning stage)
2. Shoot (Principal Photography) and
3. Wrap (Post Production, after shoot)
   • Which may be repeated if the project is divided up into local and distant locations.
   • When paying weekly—it is customary to pay higher fees for Shoot time (compared to prep or wrap) when the work is the most complex and demanding and Distant work in all categories (compared to local).
   • Not all positions are hired for the same duration. Fewer people are needed for wrap (returning equipment, paying bills) and/or prep time (rehearsals, art dept., buying items for the shoot, like wardrobe, props), some work during shoot only.
   • Include and negotiate for personal items used in the shoot, budget permitting (Computer, or Equipment/Kit/Box Rental). This information is entered at the Detail Level.

The following example illustrates paying by time in weekly increments.

Table 4.15

Film budgeting software generates totals (spreadsheets like Excel will too, if set up correctly). Budgeting on paper requires a calculator, pencils and erasers.

Account numbers connect the data together.

Account Numbers

Elements in a film budget are assigned an account number, to easily locate information, to group similar types of expenses and for accounting purposes. There are several standard systems; use the one that works for you and your team.

The first 2 digits refer to the broad category. In the following example, the column on the left lists an account number. Any number that starts with “11” (11 01, 11 02, 11 03, etc.) contributes a line item to that category total, 1100–1199 = Story and Screenplay.

Table 4.16

Account	Category Description	Total
1100	Story and Screenplay	$100
1200	Continuity	0
1300	Producer’s Unit	50
1400	Director’s Unit	50
1500	Talent ( AKA Cast)	50
	Total Above the Line	250

Account 1100 totals $100, drill down to the Account level to see accounts # 1101–1106—the elements that comprise 1100 Story and Screenplay.

Use only what you need, and if you need more accounts, add them to the category that makes the most sense. Budgeting Software will print out only the account items used, and you can always delete accounts not used if you are working on paper or in Excel.

If you needed to add a technical expert versed in details about the script subject (dressage trainer, firefighter, spy, master gardener, neurologist) add an additional account inside 1100 Story and Screenplay. The new account must start with an “11” (because 1100 is the overall number for Story and Screenplay) and not duplicate a number already in use. 1150 could be your new account; Technical Experts.

One common aspect of any budget numbering system is that the categories use large numbers, numbers with lots of room between them, to hold as many line items as are needed and to make it easy to add new accounts.

Budgeting software offers templates with a variety of numbering conventions, associated with specific studios, financing entities, distributors, or production companies. Templates include many categories determined by the size and complexity of a project. You can alter an existing template, or design your own.

Budgets are customizable. You might need new line items, limited only by your common sense and imagination; Creature and Mechanical Effects, Scuba Gear, Marine Units, Military Equipment, Armory, Stages, Translators, Internet Synergy, Product Placement, Screenings, Aerial Units, Blue Screen Units, Translators, Home Rentals, Trailers, Entourage.

Here is one commonly used numbering system.

Step 1. Identify and Obtain Prices

Start with your team—what key figures, if any, do they know? If they are thinking of specific people, locations, rates, vendors, equipment, services—get that information first. Then get information from other sources. Ask everyone—What did you pay? How much do things cost and who gave you the best rates? Contact companies and filmmakers you admire to find out what deals they made. For references, ask what it’s like to work with them, are they prepared, on time? Responsive to the director?

With team input , build a preliminary budget at full price by plugging in the rates of the team’s collective first choice—of A-List crew, cast and equipment into your budget.

CYA Gathering information is time consuming, so keep your resources organized and handy for future use. Also, keep records of deals offered, responses and how decisions were made; a paper trail is vital if something goes amiss.

Where in the world are you working? Start soliciting rates and fees for suitable locations, key people and equipment. You want to avoid transporting the entire cast and crew, if at all possible. Using location-based production incentives will drive this process.

LOCATIONS: Identify and Obtain prices from multiple sources, so you have options. What does the script call for? Start with recommendations from your team and look for:

Locations appropriate for the sets in your script. (Start with film commissions—many offer image databases, begin with a location scout who is familiar with the area.) To minimize costs, consider shooting interiors locally to minimize travel, locations that can serve multiple sets and the type of exterior settings in the story (desert, blue collar suburb) closest to you. Price local soundstages, or look into shooting in controlled spaces if it suits the story. Weigh security, a controlled atmosphere and convenience against price. Explore production incentives to help with financing the film. Once you know where you are shooting, obtain rates and availability of the key people who will drive the production process—department heads.

KEY CREW: Weigh the benefits of hiring locally or transporting key cast and crew, or a mix. Movement incurs expense; balance that against the look required by the screenplay. Draft and post email help-wanted ads for key department heads.

Director, AD, DP/Camera Operator, Location Manager or Scout, Art Director or Production Designer, Casting Director and department heads are usually identified first. Often, your team will drive the hiring process. Directors have strong feelings about who they want to work with, particularly the 1st Assistant Director, DP, and Editor.

Look at reels, call references and chat with candidates via phone to find out their rates and present the best choices to your team. CYA: The lower your budget, the more important it is to check references and have backup folks to call if someone bails. Mention the union status of the project in the ad and, if a union or guild member wants to apply, the consequences are on her. Find as many potential candidates as possible.

In the indie world of multi-talented multitaskers, peripheral equipment and abilities are often welcome—car, digital camera or video camera, aptitude on Facebook, or tweet on Twitter during shoot. Contact references, ask what it’s like to work with this person, are they professional, prepared, on time? Drama free? Resourceful? Responsive to the director? Find out availability.

If you are budgeting a non-union shoot and do not know what to pay crew, but want to be fair, establish a tiered system, where department heads will be paid the same rate. Pay their assistants a certain percent (5–20%) less and their assistants a percentage (25–40%). Often there is a “going rate” in an area, a range based on a certain level of experience.

CAST: Working with a casting director can save time, if you can afford it.

They will need a synopsis of the story and cast breakdowns for key characters; role, physical description, brief character description, age range, pertinent dramatic information, any special abilities required or special situations (nudity, sex scenes). Request resumes and headshots. Mention the union status of the project in the ad and post them on casting sites, online and in trades. Prepare sides for the casting call—portions of the scene that an actor appears in, so they will have dialogue to read in the audition. Using abundant casting resources online can save time.

Actors are drawn to an exciting project, good roles and a talented producer and director. List notable credits. Key roles will set the look and tone of the entire cast. If you have identified a casting director, begin working with them. If a guild or union actor wants to work on your non-union project, it’s their choice.

Advantages of working with a casting director include time savings, as well as a knowledge of agents, actors and rates. They understand how to streamline the audition process and union and guild rules.

EQUIPMENT: Post production services. Shooting film—does your team have a relationship with a lab? If not, contact labs convenient to your director and team and solicit bids for needed services. When shooting digital, you may need post lab services for effects shots, format conversion, sweetening or color correction. Once you find your editor, they will have input. Post production facilities will sometimes invest their services in a film for an ownership interest and credits (upfront discounted or free services in exchange for an equity interest in the film).

The format you shoot on and finish on may be different, this will be important information to discuss with your lab and post production vendor.

Equipment rental houses. Many of your crew will have their own gear, but you still need to identify and contact the rental houses for rate sheets on camera, sound, lighting gear, props, film or tape stock and expendables so you know you’re getting the best deal. The lowest price is not always the best deal—considering service, after hours service or help if something isn’t working or needs replacement, flexibility on terms, stuff thrown in for free.

Get as much information in a price quote as possible—a detailed rate sheet or catalog, weekly rates, weekend rates, daily rates. What defines a weekly rental, is it Mon-Fri (5 days), or can you pick up the gear Saturday before that Monday and return it the following Sunday (9 days)? Any student or low budget discounts?

Step 2. Negotiate

With your team’s input, contact first choices first in order, then second choices in order, etc. See what kind of flexibility the crew, cast, or vendor has; are they willing to make some kind of deal with you? Be straightforward about your budget and financing, start dates (firm or not), the project and people involved.

Once a company or person quotes a price, it’s common to counter-offer with a lower price (50% lower might seem insulting, so start with 25–30% lower). Be forthright and polite, let them know you appreciate their consideration; they may come up with an alternative. The best deal is when both sides get to yes.

Make notes about the deals (kit thrown in for free, or deferred pay). Present the options to your team and collectively make decisions. Then refine your budget, by creating a new version with this deal information. (So now you have a full price version and a deal version.)

Step 3. Lock in Your Deals

Seal the deal with deal memos and written agreements, contracts. Open accounts with vendors (find out what the process is regarding deposits, credit card on file, insurance limits). Gather necessary contact information and, distribute the essential paperwork and establish communication channels.

It is not unusual for things to be in flux for a time, with uncertainty about prices, availability and location access, so let the people know about this and if you are waiting to hear about another obligation until you can commit to them.

Type of Project and End Uses

Discuss with the producer—what is the goal, or intended end-use of the film, because this will impact the budget. With the rise in emerging web platforms, mobile technology and distribution avenues, there are more options than ever before. Goals may include profitability, fund raising, gaining experience and exposure, winning festivals and contests, securing distribution, meeting new filmmakers or finding more work. The growing importance of social media, crowdfunding, fan marketing and engagement from development throughout production, means that video can be repurposed from one form to another for maximum possible exposure.

Build time into your post production workflow for your editor to complete the primary project first, then go back to it and select key scenes and essential moments to repurpose those scenes for use in marketing. These selections are often in addition to a trailer for use on a website, blog and throughout social media to build buzz around the piece. This is a cost- and time-effective way of creating secondary marketing material from your completed work. As long as the editor knows this is important and an explicitly stated part of their job, these supplemental marketing videos are built into the overall editor’s pay rate and will be available for your marketing team to use, included in the price of editing. Give the editor specific parameters depending on the sites you want to promote the film. Lengths vary by platform, such as 6 seconds for a Vine video or Instagram (3–60 seconds), longer for sites like Tumblr (up to 5 minutes), Twitter (up to 2 minutes, 20 seconds), Facebook (video; shorter than 120 minutes and under 4 gigabytes in size; 360° format; up to 10 minutes and under 1.75 gigabytes in size), Snapchat (10 seconds) or other sizes for Vimeo, YouTube or other platforms.

Short Forms: Web Distribution

Type: Short Film

Purpose: gain exposure, enter film festivals and contests, build your reel and online channel, gain experience, market your work through social media, earn money through syndication or ad revenue.

Budget: parameters come from the producer.

Type: Short Film as Trailer: as a teaser to find funds and partners, create a longer film based on this one

Purpose: gain exposure, enter film festivals and contests, build reel and gain experience, market test a concept, interest potential investors and distributors

Budget: parameters come from the producer.

This type of film can be repurposed for reels, crowdfunding, marketing a project or the cast and crew involved.

Type: Short “Work for hire”—you’ve been hired to create specific content for someone else for a specific reason, for promotional, personal, gift, fundraising, or advertising uses.

Purpose: Get paid, build your reel and gain experience.

Budget: parameters come from the client.

Type: Short as Pilot, Sizzle, (Test Tape)

Purpose: Creating a Template for series of films, shows based on this one, select scenes from a show, whether for distribution as online or mobile distribution, to incorporate as a game, combine with an app or transmedia experience, or for proving a concept for a TV show or educational video series based on these characters and situations. Plans include seeking funds, distribution, partners to create a series, pitching and selling the concept.

Budget: parameters come from the producer, network liaison, industry norm, distributor.

Type: Crowdfunding

Purpose: build fan base, earn funding, gain exposure, build your reel and gain experience.

Budget: parameters come from the producer.

This type of film can be repurposed for social media, reels, marketing a project or the cast and crew involved.

Type: Social Media Promotion

Purpose: build fan base, gain exposure, build your reel and gain experience.

Budget: parameters come from the producer.

This type of film can be repurposed for reels, crowdfunding, marketing a project or the cast and crew involved.

Type: Virtual Reality

Purpose: build your reel and gain experience, test new formats, market to new clients.

Budget: parameters come from client and your ideas

As the VR technology becomes more widespread, you may want to consider adding this into your toolbox. As discussed previously, the majority of time in scheduling for these projects is in the concept and planning, then in the post production to stitch up the footage. Budgetary parameters vary wildly, but VR is highly dependent on a great location—something with interesting 360 degree visuals that’s not too big or it will look cavernous. Budgets must include the proper camera rig and editing tools (plus hard drive space for all that footage). Right now, the prices are all over the map, however, a friend made a great 3-minute music video for under $5,000; while charity: water disclosed that their first VR film cost roughly $100,000 USD and was made in-house. A Frontline television documentary increased their budget by 25% for VR and a big production house was quoted that a typical budget for a mainstream commercial should add $100,000 to $500,000 to complete the entire process in VR. With budget parameters ranging so widely, the consideration is first the camera(s) and post process, the experience of the team with the format and end-use of the project.

Spec Television and Internet TV

Type: 30 second to 2 minute commercial, ½ hour or 1-hour long Pilot for television—whether Community access, leased access, online portals, a specific channel, for pitching as a template for a series of shows based on these characters and situations.

Purpose: To raise funds and find distribution and partners to create an ongoing series.

Budget: parameters come from the producer.

Type: 30 second to 2 minute commercial, Corporate Video, Music Video, for pitching (whether to an ad agency, corporation, band, or other potential client) to sell, or as a template based on these characters and situations.

Purpose: You plan to use this to get hired to create something similar or gain exposure, enter contests, build your reel and gain experience.

Budget: parameters come from the producer.

Long-Form Programming

Type: Specific long-form film (over ½-hour up to 90 minutes) whether feature-length narrative film or doc, movie of the week, mini series.

Purpose: exposure, enter film festivals and contests, build your reel and gain experience, earn money from release on DVD, TV and online, to license or sell all rights to a distributor and make money and build feature credits and hope for theatrical release.

Budget: parameters come from your team or your research as to what similar films have been created for. Information about budget ranges can come from speaking with distributors, or research in trade magazines such as Variety, The Wrap, Script Magazine, The Hollywood Reporter, IndieWire, IMDB, Box Office Mojo, The Numbers, Screen International, Video Maker, Real Screen, Rentrak and from filmmakers.

Locations and Incentives

Where are you shooting? There are several concerns. Traveling, housing, feeding cast and crew is more expensive than local shooting. Shooting on location may be less expensive than using a soundstage, however soundstages offer the advantage of a controlled, secure environment. If you anticipate budgeting a film well over $50,000, you may consider applying for location-based production incentives.

Have any specific location resources for the film already been identified? (City Hall, actor’s mom’s house). This information should go into your budget first, if these are firm commitments. Where a script is set will determine what kind of look you need from your locations. Ideally, you can double up a few sets at one location to economize movement.

Moving incurs expense. The farther away you have to move, even a small crew, the more expensive. Flying is generally more expensive than driving, then the decision of hiring locally or transporting your cast and crew arises. Discuss with your team the requirements of the script; are the locations exotic? Does the story take place abroad or can the locations be in your home state or city, distant regions, or in a variety of locations? Can you cheat North Carolina for Florida? Typically, the audience will not know whether a scene was shot at a retirement community in Shiny Acres, FL or someplace else.

As of this writing, most states in the U.S. and many other countries offer film production incentives. The incentive is typically funded through that region’s government and, within certain parameters, offers filmmakers a way to save money shooting their film. I have heard financiers say that they wouldn’t even consider financing a film that isn’t using incentives. The purpose of incentives is to draw production to an area, hiring local workers, locations, hotels and services. In return (if you are spending enough), perks range from free locations, permits and security personnel and no sales tax; to a chunk of the budget paid back to the production (after navigating the process, which varies from place to place).

There are different rules, terminology and applications for each incentive and they are constantly changing because these programs are tied into local and regional governments. As taxpayer-funded, economic and political interests shift, so too do these programs. Each area has a maximum to spend annually, so if you don’t get in line for this year, you may get in the queue to wait for next year. Just because you apply, doesn’t mean you’re in. For most states, there is a minimum required to be spent on very specific types of local expenses, whether crew salaries, facilities or equipment.

Applying for a production incentive makes sense if it fits your film in terms of your budget (over $50,000+ waiting time for paperwork, funding or receipt of the credit, approval), hiring local folks and vendors, extra paperwork and waiting for approval with no guarantee. Some states require minimum local expenditures ranging from $20,000 and up (often that is only part of a larger budget), and others have no minimum expenditure as long as the production meets certain guidelines such as using a qualified stage in the state. If you don’t want to wait, or follow specific rules, or your production doesn’t meet the guidelines, skip it.

In addition to regionally-based programs like state, parish, city or province-based incentives, there are federal-level programs worldwide. The purpose of these programs is to grow the native industry, more so than to help you make your film. If a particular foreign location is perfect for the project and won’t impede progress, it is worth checking out, however, you may have to partner with a native producer or production company and it will add additional time and paperwork to the production process (including visa applications, immunizations, currency exchange, etc.). Film Commissions play a pivotal role in these programs and are a good first point of inquiry.

Look into the incentives; ask lots of questions about how they work and how much time it takes to gain the funding benefit. However, realize that travelling someplace to utilize an incentive will impact your budget—say if you need to fly some of your cast and crew and house them at the location—you may save money on the incentive, but boost expenses by bringing personnel along. Once you create a basic budget, then applying various incentive programs to create additional budget versions is one method to see whether a certain incentive is worth your while.

Following is a list of minimum local expenditures by U.S. state programs, as of when this book was written. Due to the fact that state-level production programs function through the government, they will change over time based on who is voted in office, how the program is run and how the citizens of the state perceive the program. It is entirely possible that any production incentive can be terminated or changed, so be sure to look up the details and call the film commission with questions.

Unlike other financing, incentives are “free” money; the production gives up very little in exchange for the funding, however, there must be a fit between film and incentive. To stay up to date, check the Entertainment Partners and Film Commission websites.

Wages, Unions and Guilds

Low budget filmmakers need to stretch every dollar to get their films produced, and wonder if it’s possible to do that and work with entertainment guilds and unions. The unions and guilds now offer Low Budget Agreements as a solution for producers to work under constraints of lower budgets ($50k-$11m), while ensuring rights and benefits for union and guild members. The budget ranges vary from one organization to the next, as do how wages are calculated, so be sure to get the most updated information from a recent paymaster guide, or the organizations themselves. Table 4.21 compares the amounts and names of the budget amount (tiers, or levels) between SAG, WGA, DGA, IATSE and the Teamsters, with further detail in Table 4.25 for IATSE, Table 4.28 for DGA, Table 4.29 for WGA and Table 4.31 for SAG.

The union/guild versus non-union/guild issue is a chicken and egg situation that goes back to money, then time. Don’t assume you cannot afford to hire members of the entertainment union until you have run the numbers. Shooting union/guild is more expensive (required minimum pay scales and benefit fringe payments), there is more paperwork and oversight (that’s not always a bad thing), however the unions and guilds themselves will work with you to make the process as easy as possible. Also, weigh that against using marketable actors from SAG to help you sell your project. SAG rewards your production when you cast diverse performers. Union and guild workers have training in certain areas, which can move the production process along more quickly and easily.

The unions and guilds are separate entities, but cooperate through collective bargaining. Speak to union reps to understand the process and rules as far in advance as possible. Pay scales are established by unions and relate to the anticipated budget (on bigger budgets, people are paid more) and the type of film it is (training, experimental, student or new media).

Rules of Thumb

• Union rules are location-based.
• You do not have to use union talent, it’s not against the law. You can become a SAG signatory and not use other unions.
• If you use one union, that doesn’t mean you have to use all of them.
• Once you are signatory with a particular union for a film, you must fill all the positions covered by that union with union members. (So, if you become signatory to the DGA you can hire a DGA director and you must also hire a DGA UPM and AD. Hire an IATSE DP, then all the BTL (Below the Line) positions will be IATSE)
• If you’re shooting in or near a dense metropolitan area in the U.S. you can find a qualified crew base, both union and non-union.
• Union members are not supposed to work on non-union projects, but the responsibility is on them; they will be fined (if busted).

There are states in the U.S. that are considered right-to-work states, therefore workers do not have to abide by union rules. These are the right-to-work states at the time of this writing: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin and Wyoming. If you are unsure of the rules in your state, contact the state film and television commission for help navigating this territory.

What to pay people? Start with what you know. Is anyone already attached to your project, like a principle actor or director? What deal was made, was it verbal or written? If the star will be paid $5 million, this is not a micro-budget film. If this is the producer’s first feature, the budget probably will not be millions.

When building a budget from scratch, a contradiction arises. As noted previously, wage scales are tied to the budget range. A film shot for $200,000 pays different rates to cast and crew than a film made for $2 million, $15m, or $70m. On top of payment for services rendered, there may be additional fees for benefits and residuals; how to decide what to pay? The union/guild payment hierarchy is logical—department heads earn a certain amount, 2nds make a little less, 3rds a little less. For example, in a Tier I production (total budget up to $5m), IATSE minimum pay scale for key crew (department heads) is $24.76 / hour—that’s for Key Grip, the 2nd in that department would be paid $23.37 / hour and 3rd will be paid $19.97 (plus payroll taxes and union fringes on top of that for everyone). Moving up in the union literally means moving up the payscale ladder.

This structure can be applied to non-union films as well. Pay keys the same, 2nds the same—a little less than keys and so on. Add payroll taxes. When in doubt, use the lowest tier for all pay rates as a reference to build your budget, discounted slightly—10–20%. Find out state law where you will be shooting regarding minimum wages and overtime.

Rules of micro to low budget and indie filmmaking include: don’t buy if you can rent, don’t rent if you can borrow and, if possible, exchange credits or deferred salary or profit points for salary upfront. Whatever budget you have, spending it wisely is key. How to do that is not always obvious. Perhaps your producer hopes to shoot a no-budget project, without paying anyone a wage, or paying for equipment.

No-Budget Film

Unfortunately, no-budget doesn’t mean free. Scripts will need to be printed, tapes and expendables have to come from somewhere and it is necessary to feed people as well as you can. Insurance is crucial, in case of an accident. If we could see into the future, we would have played that winning lottery number by now! Shoots can be unpredictable. When you seek crew and cast for a no-budget film, be clear, to manage expectations.

Rule of Thumb: No matter what the budget, FEED people well and keep them safe.

Variations on the theme of free.

1. Will work for the 3 Fs, for:
   • Free,
   • Food,

   • Finished film.

     The copy and credit experience is a way to network, build your credits, gain experience and add to a reel and your network. The production doesn’t provide anything but meals, beverage and film copy, so the cast or crew won’t get paid or reimbursed for expenses, no per diem, they won’t share in profits. State this clearly. If possible, reimburse people for transport, or actors for dry cleaning expenses when they wear their own clothing. An unspoken understanding is that you will recommend or hire this person, if possible, for future paid work.

2. Free Friends With Benefits:

   There are many variations on this; call everyone you know and ask them to pitch in for a credit and copy of the completed film. Crew and cast may receive deferred pay (AKA: payment later) or a share in net profits. Among friends and colleagues, a common deal is “I will work on your film for free and you work on mine.”

3. For free (but not on my own dime.)

   None of the cast or crew receives a wage for their services, but are reimbursed for select expenses (you spell these out clearly upfront), such as their travel, tolls, cell phone usage during the shoot, expendables, wardrobe cleaning for actors.

When cast/crew work for free, depending on where you live, you are lucky if they:

• Show up
• Know their job
• Can do their job
• Do a good job

Particularly on free and micro budget projects, scout and arrange for backup, in case people don’t show up. Most filmmakers are hardworking, but it’s important to CYA : have backup folks to call!

Now that you have a schedule, you know the number of actors, extras, vehicles and locations you will need, in addition to specific props and set dressing and can research prices. Consult with your Director and AD to find out how big a crew will be needed. Department heads will also help you find prices and equipment vendors are happy to provide rates. For the latest Union/Guild Pay Rates all in one place—The Entertainment Partners Paymaster Rate Guide and Showbiz Labor Guide are updated annually.

Crew UP: Get consensus from your team on who to seek first, wording of the search ads and where to place them. Feature length films typically need at least a Director, 1st and 2nd AD, PM, Production Office Coordinator, 1st and 2nd Assistant Camera Op/Driver, Key Grip and Driver, Key Gaffers, Dolly Grip, Electrician/Grip, Key Makeup, Wardrobe and Hair, Sound Recorder and Boom Operator, Art Director, Prop Master, Editor and Assistant Editor, Sound Editor, 3–4 PAs, Production Accountant, Craft Service, Script Supervisor, Still Photographer, Painter, Carpenter, Operator of the Honey Wagon. On nimble productions, one person might hold 2+ of these positions. Shorts generally need fewer people. Be sure to request resume and credits, references, links to a reel, equipment or kit list and price (is it insured?), whether the person has a car and availability.

SAG-AFTRA is typically a first stop. It’s important to understand how they work, so contact them. It is possible (but not easy) to find Financial Core union members with hybrid status, working both union and non-union. If you live near big urban areas, or areas with developed film centers, it is possible to find great non-union crew.

Also, remember that the projected budget range of your film as shown in Table 4.21 impacts whether the production can afford to cast and hire union and guild members. The following union websites are a first stop:

• Writers: www.wga.org/www.wgaeast.org
• Actors and Performers: www.sagaftra.org
• Directors, ADs, UPMs (Location Mgrs on the E. Coast): www.DGA.org
• Technicians, Craftspeople and Crew (IATSE AKA IA, most BTL crew): www.iatse-intl.org
• As signatory you have a choice to be a “one-off,” making just one film under this agreement (probably), or a “term” deal, committing to 3 films under this agreement.
• Transportation, Animals and Wranglers, Catering (Location Mgrs on the W. Coast): www.teamster.org
• Musicians: www.afm.org

Here are sample rates as a reference. Consult the union to obtain the latest prices and most up to date information; they change regularly. Unless noted, they are hourly rates and may vary depending on where in the U.S. the production will be shooting.

Tier 1 Rates

• Key	$24.76 Hour
• 2nd	$23.37 Hour
• 3rd	$19.97 Hour

Table 4.25

IATSE Rates	Up to $5.5m	$5.5m–$9.35m	$9.35m–$13.2m
Film Budget Range	Tieri	Tier 2	Tier 3
Director of Photography	STN	STN	STN
Camera Operator	STN	44.64	46.98
Digital Imaging Technician	STN	44.64	46.98
1st Asst. Camera	Key	36.22	40.77
2nd Asst. Camera	2nd	29.68	31.24
Still Photographer	STN	44.64	46.98
Film Loader	3rd	25.38	26.69
Camera Utility	Key	30.95	32.58
Digital Utility	2nd	26.72	28.12
Key Grip	Key	30.95	32.58
Best Boy Grip	2nd	28.01	29.45
Company Grip	3rd	26.72	28.12
Dolly Grip	2nd	28.97	30.50
Chief Lighting Technician	Key	30.95	32.58
Best Boy Electric	2nd	28.01	29.45
Lighting Technician	3rd	26.72	28.12
Rigger Gaffer	Key	29.00	30.55
Art Director (weekly—on call)	STN	2,432.40	2,560.41
Lead Person	2nd	26.73	28.15
Swing Gang	3rd	23.86	26.85
Production Designer	STN	STN	STN
Production Painter	2nd	31.81	35.80
Set Painter	3rd	27.69	31.17
Set Designer	Key	30.76	34.63
Scenic Artist	STN	STN	STN
Construction Coordinator	STN	STN	STN
Propmaker Foreman	Key	29.34	33.03
Propmaker	3rd	25.55	28.77
Special Effects Foreman	STN	STN	STN
Asst. Special Effects	STN	STN	STN
Set Decorator	STN	STN	STN
Prop Master	Key	28.93	32.58
Asst. Prop Master	2nd	25.55	28.77
Key Greens	2nd	26.16	29.45
Marine Dept. Coordinator	STN	25.55	28.77
Boat Handlers	STN	24.89	28.15
On Set Picture Cars and Boats	STN	24.89	28.15
Costume Designer	STN	STN	STN
Key Costumer	Key	28.93	32.58
First Set Costumer	2nd	26.16	29.45
Costumer	3rd	24.98	28.12
Head Makeup Artist	Key	33.26	37.44
Makeup Artist	2nd	28.28	31.84
Head Hair Stylist	Key	28.93	32.58
Hairstylist	2nd	25.73	28.96
Sound Mixer	STN	46.61	52.47
Boom Operator	2nd	31.42	35.37
Utility Sound Technician	3rd	30.08	33.87
Video Assist (record)	Key	28.93	32.58
Script Supervisor	Key	29.16	32.84
First Aid/Medic	2nd	26.16	29.45
Craft Services	2nd	26.16	29.45
Craft Utility	3rd	24.98	28.12
Editor (weekly—on call)	STN	2,756.63	3,088.53
**Sound Editors	STN	1,986.10	2,236.03
**Music Editors	STN	1,986.10	2,236.03
Asst. Editor (45 hr/wk)	Key	1,601.47	1,802.99
Apprentice Editor (40hr/wk)	3rd	832.47	937.69
*POC	2nd	STN	23.73
*AP0C	3rd	STN	21.19
*Art Dept. Coordinator	2nd	STN	23.73
*Production Accountant	Key	STN	26.28
*Asst. Production Accountant	2nd	STN	23.73
Story Analyst	Key	STN	STN
Location Manager (On call)	STN	STN	STN
Assistant Location Manager	STN	STN	STN
All Others	STN	STN	STN

Figures vary by location, see LA and “Production Cities”: Chicago, Cleveland, Detroit, Orlando, San Francisco, St. Louis, NYC, Washington DC

STN=Subjectto Negotiation—These Rates Shall be Greater than

One-off rates—for one production.

All IATSE Rates as at the time of writing.

Table 4.26 Theatrical Rates For States: MA, ME, RI, NH, VT

IATSE TIER 1 up to $5m
Key	STN
2nd	37.81
3rd	34.91
Utility	28.69
Fringes	Tier 1	Tier 2	Tier 3
Administration Fees	1%	1%	2%
Pension RSP	4%	4%	4%
Health and Welfare	6%	3%	7%
Vacation Pay	4%	3%	5%
Total	15%	15%	18%

First 8 hours, straight time (plus payroll taxes, plus fringes). Work hours over 8 on the first 5 days of the work week and on a 6th work day are time + ½. Double time paid after 14 hours on first 6 work days of work week and all hours worked on a 7th day in a work week, or on a designated holiday. Hours worked beyond 15 any day are paid triple time.

Table 4.27

IATSE Meals
Meal penalty	$8.50
2nd meal penalty	$11.00
3rd and succeeding	$13.50
Per diem
Breakfast	$10.00
Lunch	$15.00
Dinner	$29.00

Table 4.28

Table 4.29

WGA: Screenplay purchase minimums
Low Budget ($5m or less)
Original Screenplay	$47,862
Non-original Screenplay	38,950
Non-original Story or Treatment	23,374
Original Story or Treatment	32,276
High Budget (above $5m)
Original Screenplay	97,978
Non-original Screenplay	80,160
Non-original Story or Treatment	35,633
Original Story or Treatment	53,450

Table 4.30

TEAMSTERS	Hourly
Transportation Captain/Gang Boss	$42.55
Drivers of Vehicles Requiring Class A License (water trucks, vehicles towing trailers over 10,000 lbs. and operators of cranes and honey wagons and driver-cooks)	36.90
Drivers of Vehicles Requiring Class B License (operators of maxivans, 10 or more passengers), buses, 5-ton crew cabs, crew cabs towing trailers less than 10,000 lbs., skip loaders, motor homes and driveable generators)	34.16
Drivers of Vehicles Requiring Class C License (including 3 to 5-ton trucks)	31.27
Camera Car Drivers	42.55
Production Van Drivers/Operators	43.45
Chapman Crane Operator	42.55
Wranglers	35.85
Driver/Wrangler	36.90
Wild Animal Trainer	49.91
Wild Animal Handler	43.24
Dog Trainer	43.24
Dog Handler	35.85

Minimum call, 8 hours, after 8 and/or 40 hours, rate Time + ½, so each hour worked is paid 1.5 × the hourly rate.

Bear in mind that if a driver has to drive special equipment, the rates differ, but may require special training or licenses. Not just anyone can drive a crane, so be sure to discuss your needs and ask many questions.

Table 4.31

Project Length and Format

Length: The longer your project, the more expensive it is. More pages = more time on screen. More time on screen = more shooting time, which incurs expense. Due to growing distribution formats and improvements in technology, it is difficult to calculate an exact “per minute” formula, although you could calculate averages.

• $70,000,000 feature film
• 100 min
• On average, $700,000 spent per completed production minute
• $100,000 digital feature film
• 90 min
• On average, $1,111 spent per completed production minute

Cable programming, whether an infomercial, on leased access, from basic to premium, can cost from $20 a minute (man on street, talking heads, game show, amateur cooking show) to $500,000 a minute for an HBO extravaganza show like Rome. The vision of the producer and the director for the length of the film should approximate the script length (90 pages = 90 minutes). If not, what’s the plan?

Format: Upon choosing a format with your team, consider the end use, crew experience and access to equipment. The format that the film will be shot on, then delivered on, will impact your budget. If you have a delivery date and a list of delivery requirements (from a distributor, broadcaster or other entity), follow those to the letter. Film stock and equipment are more expensive than video; film requires a bigger crew, more lights and a more expensive post production process. The two points of format to consider are the format you capture the image on (film, tape, P2 cards, DV, HD) and the format the film is completed on. Widespread popularity of the many affordable non-linear editing systems—DaVinci, Avid, Final Cut, Adobe, iMovie and Sony—enable a director and a freelance editor, with her computer, to work together more quickly and cheaply than if the entire process is conducted at a post facility.

Offline editing is the practice of duplicating the original footage on film or tape in order to store and protect the original—it has historically been done this way due to the fragility of film and tape stock. After online editing, the original film or tape media can be conformed, or onlined, in the online editing stage. The beauty of editing digital files on a computer is infinite choice and the curse of editing digital files is copious footage and infinite choice. On a non-linear system, the editor can jump to any part of the project, rather than working in order.

Table 4.32

Typically, original footage is digitized into the computer. The editor and director are then free to work with all the options to create the final cut. Non-linear editing offers the possibility of editing the entire film without touching the original. Here are common workflows:

Financing and Crowdfunding

Financing a film or TV project often incurs costs, unless the filmmakers plan to fund the entire budget themselves. Financing expenses can be listed in the “Miscellaneous” or “Other” section or as a separate line item at the end of the top sheet as a flat fee, or a percentage of the budget. Financing costs may cover crowdfunding costs, funding referral fees, bank charges, interest on a loan, or bond fees.

With more crowdfunding platforms than ever before, an important skill is succinctly and easily displaying a basic schedule and budget to inform and incentivize potential funders to get involved with your project. The process of planning and executing a crowdfunding campaign usually takes longer than we think and the amount of planning depends on how much money you’re raising and the size of the network and contacts of the film-makers. Video and images are key to the success, as is assembling the overall campaign prior to launch. It is easy to assume it can be done on the fly, or during shooting, but with time and planning, your work on the campaign has a better chance of success.

There are many services, consultants, digital marketing agencies and logistics providers that you can work with to create and handle most of, or specific segments of, your campaign and it is worth researching some to get ideas and also for help; such as FundedToday, KickTraz, Kickbooster.me, Green Inbox and others.

To some extent, crowdfunding is pre-marketing of your project, so you could build it in as a percent of the total amount you will spend on the overall film budget. Here is a sample, relatively modest crowdfunding budget, flexible in that you can expand and reduce many of the categories and incorporate your team members as well.

There are several schools of thought on allocating a portion of a budget to marketing. Marketing is a necessity in a crowded marketplace and all of it is important to the success and awareness of the project. Many thought-leaders believe that within the budget for any film or video, marketing should be at least half of the overall budget; that decision ultimately is the responsibility of the producer. To be safe, make sure you have a minimum of 10% for marketing and the smaller the budget, the bigger that percentage should be. For example, if the total funds you believe the filmmakers can raise for a first short film is $500, consider allocating 80% for making the project and 20% for marketing, which would mean $400 goes to creation, $100 to marketing—for personnel, creating videos and graphics for the crowdfunding campaign, a logo if necessary, website expenses and film festival entry fees.

Potential funders and donors in the crowdfunding arena have so much competition for their money, that strong videos and visuals are a necessity, not an option, helping to earn filmmakers the best possible results.

Setup

The header of your topsheet will identify the film.

In budgeting software, select a template, name it and save it. All of the templates can be changed as you like. The Superbudget template created by Bob Koster, a budgeting rock-star, is so thorough that you are unlikely to overlook anything. On the flip side, the Academic Template offers basic essentials. If working on paper, grab blank budgets and a pencil.

Identify title, team, script version, date and other information in File/Print Setup.

Fig. 4.5 File/Print Setup

Fig. 4.7 Edit Header/Footer

Click OK and SAVE.

Setup Globals; shortcuts used frequently for time and rates (length of shoot, prep, wrap, work hours, pay scales). Changing a figure once in Globals automatically updates the budget, so you don’t have to manually change it for each cast or crew.

Fig. 4.8 Setup Globals

Assign a Name and Calculation to Global you will use often, the length of the total shoot (S), or segments of the shoot (locally or distant).

Table 4.35

An example of Globals: at the detail level, in AMOUNT type in the Name Abbreviation. “S” will fill in the amount for total shoot.

Table 4.36

Setup Fringes, shortcuts for taxes, payroll fees, union or guild-specific payments.

Fig. 4.9 Fringes Calculate Benefits and Taxes

On top, Fringe Benefits by Percentage, are paid as a percent of wages.

Fig. 4.10 Fringes Calculate as a % of Wages, or a Flat Rate per Hour

Fringe Benefits by Flat Rate per Unit is a specific payment amount connected to a specific unit—hours worked, days, etc. Once setup, fringes are applied at the Detail level.

Fig. 4.11 Select the Lines for Applicable Fringes

Click on fringes (for a writer, WGA and Payroll)

Fig. 4.12 Apply Relevant Fringes (WGA Writer, WGA and Payroll)

Click “Make Fringe” and close. The program will add the appropriate fringes.

Setup Units, shortcuts that establish the length of shooting week, day, or other units.

Fig. 4.13 Units Calculate Appropriate Length of Day, Week

Once setup, Unit at the Detail level, type “A” for Allow, “W” for Week, “D” for Day, the default units in most budgeting programs. You can add more if you like.

Table 4.37

Change numbers in Units where necessary to generate the proper calculation. Is a work day 8 hours? (Unlikely in production, 10–12 is more likely). Week = Days you will work in the week (5 or 6) × Hours in a Day. With a 12-hour work-day, a 6-day work week will equal 12 (hours) × 6 (days) = 72 hours. Flip it around if you are doing a weekend shoot, 2-day weeks, 13 hours per day = 2 × 13 = 26 work hours.

When creating a budget manually or in Excel, include the fringe amounts and a key for Units at the top for quick reference.

Set up one account, copy and paste to use again. Here is an account for a non-union member paid at a flat rate:

Table 4.38

Apply Fringes (taxes). For a union crew member paid weekly or daily:

Table 4.39

Add fringes (taxes, and applicable union requirements).

Here is an example of a non-union crew member who would be paid weekly or daily:

Table 4.40

Apply fringes (taxes).

Copy by clicking on the upper left corner. Paste information at the Detail Level.

Fig. 4.14 Copy/Paste at the Detail Level. Click on the Upper Left Hand Cell above Number “1”, Click Edit/Copy

Fig. 4.15 Click Edit/Paste. Alter as Needed.

Above the Line: Creative and Development Costs

Above the Line categories include development costs—initial ingredients the producer thinks will make a great project—a story and script, writer, director and cast. Find out if the producer promised any Above the Line team a portion in the film’s profits (AKA backend).

In the employment contract—in addition to the salaries for these people and their duties—you would define those profits, or points (1 point = 1%) that will be due to them. This profit participation may be called net points or defined proceeds, distributed after other expenses are paid. To promise gross points means payment before expenses are paid and is not advised. With some exceptions, Below the Line workers do not share in the profits. Any points—or participation in future profits—cannot be predicted ahead of time, as there is no way to know if there will be profits and they are not included in the budget.

The producer who initiated this project likely spent money building a development package—script or story idea, director, lead actor—and/or likely made deals with these parties, so start with the information you have and input figures into the budget that were already paid out, or promised.

On films that are passion projects, first features, many of the ATL players may be paid nothing upfront and contract to receive a portion of a film’s profits.

1100 Story, Rights, Continuity

Screenplay and story rights are a key Above the Line cost and run from 2–10% of a film’s budget. A production must own the motion picture rights to the story of the film. You could pay one person for the idea and another to transform that idea into a script.

Enter data at the Detail level. The writer could be paid a flat rate;

Table 4.41

Or for incremental versions of the script.

Table 4.42

A producer might Option a script, like a “lease to buy,” controlling the property for a small down payment (5% of the purchase price), for a limited time (1–2 years) until purchasing the property outright (pay the other 95%).

Table 4.43

Copyright registration offers legal proof if someone infringes, it costs $35 at the U.S. Copyright Office (www.ECO.gov). Do it again if the story changes significantly. The cost to clear the script legally is included in legal expenses.

Fringes applied include payroll taxes and WGA members receive guild fringes (18%).

Fig. 4.16 Apply Fringes as Required

Fig. 4.17 Payroll Taxes and Payroll Service (If You are Using One) are Commonly Added to Writer’s Pay, WGA Writers also Receive WGA Fringes

Check with your producer if nothing has been paid for the Story Rights or Script Writer. The production will need to prove ownership of the rights if it is to be sold or distributed (unless it is in the public domain). Even if acquired for $1 (paid by check), get it in writing. Whether an original idea, or a derivative work (based on something else), the production must procure the rights from the copyright holder. (For more info, check out The Pocket Lawyer for Filmmakers, A Legal Toolkit for Independent Producers, Focal Press. Makes a great gift!)

With non-WGA writers, it’s a matter of negotiation. WGA salaries correspond to the budget size and the nature of the material.

Table 4.44

WGA Theatrical rates	Low Budget (under $5m)	High Budget ($5m and up)
Original Screenplay + Treatment	$71,236	$133,739
Original Treatment	32,276	53,450
Screenplay 1st draft	28,052	53,450
Screenplay Final draft	10,908	26,839
Rewrite	23,374	35,633
Polish	11,695	17,818

Other WGA rates

Register script with WGA; costs $20 for non-members and $10 for members.

www.wgawregistry.org/regdetails.html

Table 4.45

Week to Week Employment (fi lm)	$5,318 / wk
Subscription VOD pay platforms	8,683 for Tier 1 budget ($2,100,000+) 5,850 Tier 2 budget ($1,300,000—$2,100,000)
Network Prime Time (30 min or less)	Story 8,683	Teleplay 18,677
New Media: Dramatic	752 / 2 min or less	376 each add’l min
New MediaL Comedy, Variety, Daytime	439 / 2 min or less	220 each add’l minute
Pension Plan	8 ½%
Health Fund	9 ½%

1200 Producers’ Unit

Most films have several producers and it is hard to know, by the credits, exactly who did what. In filmmaking, producer credits are flexible; their duties are less clearly defined than other positions. Producer credits may go to people actually working on the film, or contributing in another way, finding financing, key personnel, or a location.

Table 4.46

1102	RESEARCH	Books, interviews, materials, consulting experts.
1107	SECRETARY and TYPISTS	You may need this for transcription, or to help the writer
1108	DUPLICATION and PRINTING	$0.05 per page, printer toner, brads, etc.
1109	SCRIPT TIMING	Script supervisor times the reading of the script aloud so the resulting script isn’t too long, or short
1117	RENTALS	Providing living and travel while writing, or to work with team.
1151	AIRFARES
1154	LIVING EXPENSES
1155	AUTO/TAXIS/LIMOS
1185	OTHER COSTS	Miscellaneous charges, reimbursements, shipping.
1199	WGA FRINGE BENEFITS	(18%) For WGA members

The number of people in this category relates to the size and scale of the project. It’s common for low budget features to have an Executive Producer, Producer, Co-Producer, Associate Producer and Producer Assistants Above the Line, while Below the Line, you might have a Line Producer and /or UPM, Production Office Coordinator/Prod. Secretary, assistant Production Coordinator and a few Production Assistants staffing the office. It really depends. Many films start off with a core crew (Producer, LP) and as things heat up, hire more people. The PM or LP relies heavily on the Production Office Coordinator, to keep on top of paperwork and the million details in the production office.

Producers fees may be paid as a flat rate or weekly and often receive profit participation. The producer may also want initial out-of-pocket costs included in the budget for reimbursement in Development expenses (research, travel, legal).

Table 4.47

1201	EXECUTIVE PRODUCER	The big one Provides a significant contribution, financing, accass to financing, securing rights.
1202	PRODUCERS	There may be several, some are hands on, some are not. Paid flat rate with profit participation.
1203	LINE PRODUCER	Breaks down script, creates schedule and budget and oversees them, as well as hiring, union and location matters.
1204	ASSOCIATE PRODUCER	Often acts as Post Production Supervisor—herding the film through the winding process of post, or used as a contractual incentive.
1208	LEGAL and AUDITING	A script clearance firm goes over the script, then provides information needed to minimize the production’s legal risks and satisfy insurance requirements.

Producers are paid on a wide-ranging scale, partially because the PGA (Producer’s Guild of America) is not entrenched in filmmaking to the extent of the other guilds and unions. You don’t need any certification or membership in the PGA to make a movie of any type—union or non-union—you just need to get it done. Having said that, producers can earn $250,000 and up on features, provided there is room in the budget for that salary. Marketable and hot actors making a transition into producing can earn $500k—$750k. There are a handful of famous producers earning salaries of $2,000,000+ plus backend fees, but they have a box office track record to justify those numbers. On a recent Hollywood $70m thriller, the EP received $2.5m, one producer $850,000 and the producer/writer $3.3m (for producing and writing). On low budget features, the producers may fund the picture themselves and build very modest salaries of $10,000 into the budget just hoping to recoup that, get the film made and earn net profits. When you are constructing the producer unit, bear in mind the relative number to the over budget and ATL in general—if this unit is a large majority of the ATL, or far surpasses your star cast unit, spend time discussing this with your team.

An Executive Producer finds the money, the Producer acts as the parent to the film and everyone supports this effort. Generally, EP is not involved in day-to-day decisions. Often in credits, there are multiple Producer credits, but usually there is one person driving the bus and making sure it happens. You need to make sure you are working directly with that person. Who makes the spending decisions? That’s the person you need to be working with. The Line Producer manages the budget and schedule—this position is sometimes found in Production Staff (2000) and, depending on the size or scope of the film, may work with a PM and UPM, or not, that’s up to you.

The Executive Producer and Producer may be paid a flat rate as it is difficult to quantify their time, or weekly. Usually receive a profit participation (not in the budget).

Table 4.48

Producer’s support staff (secretary) are typically paid weekly or daily.

Table 4.49

FYI: When lots of producers are involved, let cast and crew know who has the last word.

Trade organizations representing producers include: The Alliance of Motion Picture and Television Producers (www.AMPTP.org), the entertainment industry’s collective bargaining representative and the PGA (Producer’s Guild of America www.producersguild.org). Regardless of affiliation, producers negotiate their rate on a per-project basis, there is no standard.

1300 Director’s Unit

Spurred by the imagination of the Producer, the Director (AKA First Unit Director) realizes the script through a visual and audio plan—through casting, choice of locations, camera placement, lighting and pacing. Inspired by the producer’s objective with the blueprint of the script as a guide, the Director works to create the finished film as seen in her or his mind’s eye and works toward that end.

The Directors unit is led by the 1st Unit Director and may include a 2nd Unit Director (can double as Stunt Coordinator) and choreographer for dancing or fights, if needed.

At the Detail Level, design the Director’s account carefully and you can copy/paste to reuse it as a template again for any member of the DGA. This position may be paid as a one-price flat rate or weekly on features, daily on short projects. FYI: if a crew or cast member is paid at a flat rate, it does not mean they must be paid in one big check—it will be split throughout the project. If paying weekly, there are different rates for prep, shoot or wrap. On a non-union picture, the rate is a matter of negotiation. Experience is important; every director wants that important first feature directing credit.

Fig. 4.18 Non-DGA Directors are Typically Paid Under Scale

DGA members, like other guild members, are paid according to minimum rates tied to the film’s budget (called “scale”) and must be paid at least scale or higher. In-demand directors may request higher rates and perks. Additional expenses are itemized at the bottom, if they apply. Most directors will expect a profit participation.

Fig. 4.19 Apply Specific Fringes, Travel and Globals if Hiring DGA, Otherwise, Rates are Subject to Negotiation

Check DGA for the most up to date rates (www.dga.org). For example, director payment on a theatrical motion picture, level 4a budget ($3,750,000–8,500,000) would be calculated as follows:

Table 4.50

Weekly Salary	$14,007
Guaranteed Preparation	2 Weeks
Guaranteed Employment	10 Weeks
Guaranteed Cutting Allowance	1 Week
Days Worked Beyond Guarantee	$2,801
Daily Employment Where Permitted	$3,502

Make sure to apply relevant fringes (Payroll taxes + DGA fees for DGA members)

Table 4.51

Non DGA Industrial/Corporate	$1,900–4,500/day
Non DGA feature	15,000
DGA Network Prime Time	23,118 (1/2 hr)
DGA Network Prime Time	39,258 (1 hr)
DGA Daily Employment	4,128/day for ½ hr show
DGA Daily Employment	3,272/day for 1-hr show

Many Directors work using a Loan Out corporation—you hire the Director’s Loan Out and that company provides that persons’ services. Primarily done for tax reasons, the Loan Out will be responsible to pay payroll taxes, while you will be responsible to pay DGA fees (if hiring a DGA member). The IRS has been examining the use of Loan Outs in recent years, but that’s not your problem.

If your team doesn’t have a director yet, start there first. Talented directors will attract talented actors and crew. Discuss with your team the type of director you envision. Your director is a critical team member from which everything else follows: the look and tone of the story, pacing, lighting, marketability.

Director Hiring Criteria:

• Someone with experience shooting this genre of film, in equivalent budget range
• Tells a story well, footage looks great
• Prepared, organized, reliable, good with actors, a clear communicator.

1400 Cast

Cast rates vary widely, depending on their union status and demand. From the scheduling process, you know how many cast members, and how often, you will need them. Print the Day Out of Days Report for Cast Members (AKA DooD).

Fig. 4.20 The Day Out of Days Cast Report Helps Indicate Which Cast Should be Hired for the Duration of the Entire Shoot, as Day or Weekly Players

Few talent may be hired as run of show, (AKA: series, Allow), available to show up any time they are needed. This is usually more expensive than hiring someone on a weekly, or daily, basis. The run of show actor is essentially standing by, even when not on set, so they cannot take other work.

To increase the marketability of your film, consult a casting director (and tell everyone you know) if you are looking for a cameo (or just Voice Over) by a star. This person would probably be hired for the shortest time possible and if they like the project may work for SAG scale. Beware the cost of perks, personal chefs, private trailer, all add up.

Fig. 4.21 Lines at the Detail Level may be Used to Indicate Other Key Information About Cast or Crew. Cast Often Require Prep Time, but do Not Need Wrap Unless they Need to Dub Lines for the Post Production Process.

Don’t assume the production cannot afford it until you have done a little research—and if your project appeals to a specific niche audience or has a social appeal, or benefits someone, stars may make themselves available to the production and take SAG scale. Lead actors often work through a Loan-Out corporation, you pay the Loan-Out for that person’s services—that corporation pays the federal and state taxes. You pay SAG or AFTRA fringes if applicable.

Fig. 4.22 Celebrity Cast Members May Require Additional Expenses Unrelated to their Performance

SAG performers are categorized as full members in good standing (you have to find out) or financial core (hybrid union and non-union status). Casting resources online are numerous.

1900 Fringes

Fringes come in two types, payroll taxes and Union/Guild payments. Payroll taxes are both federal and state, paid out as a percent of a worker’s pay (that’s why they are called payroll taxes).

Table 4.52

1401	LEAD1	Stars sell tickets, which is why their salaries can be so extreme. Stars require working through their agent (10% will be added on top of salary). Unknown actors may work for SAG scale wages, deferred pay, share in the profits, minimum wage, or “subject to negotiation” for new media
1402	LEAD 2
1403	LEAD 3 etc. etc.
1404	WEEKLY SUPPORTING	Actors working 4-days or more, hired on a weekly basis
1405	WEEKLY/DAY PLAYERS	Actors working 3 days or less. Local/non-union will save money.
1406	STUNT COORDINATOR	AKA Stunt Gaffer. Experienced Stunt Coordinator can plan the best looking and safest stunt, there are specialties relating to the materials or skills (fire, water, falling, vehicles) required for the stunts. Start with this person for pricing all of the equipment and people needed for Stunt work.
1407	STUNTS and ADJUSTMENTS	Stunt people are paid as actors and given pay bumps “Adjustments” based on the difficulty and dangerousness of the stunt.
1408	LOOPING	AKA (ADR, Automatic Dialogue Replacement) the Actors performing their lines for audio only.
1409	VOICE OVERS	Audio Narration recorded
1410	FORCED CALLS	SAG Actors are required to take a 12-hour consecutive Rest Period (Turnaround) and violation of either daily or weekly rest period is known as a “forced call” the penalty is one day’s pay or $950
1413	CASTING DIRECTOR	Helps find and audition cast, they know agents, actors, rates. Prep day $200-1,000 and casting day $400-1,500 depending on # roles
1414	CASTING DIRECTOR ASSISTANTS	Assisting Casting director
1415	CASTING EXPENSES	Casting office, use of a computer, video camera. Extras cast by separate company specializing in extras.
1416	STUNT PURCHASES/RENTALS	Stunts typically require rigging, wire, pads, small exploding squibs for bullets, blood bags or fake blood filled capsules; fire stunts require gloves, hoods, special clothing, oxygen tank, flammable gel, mortar and prima chord for explosions.
1441	LEAD 1 TRAVEL AND LIVING	May include car rental, limos, hotel and accommodations,
1442	LEAD 2 TRAVEL AND LIVING	per diem (a certain amount of $ “per day” for whatever— food, gum, newspapers) and the array of expenses allocated to transport and care for the Above the Line personnel. This category requires clear parameters and monitoring, or can be used to build up a budget.
1443	LEAD 3 TRAVEL AND LIVING
1451	AIRFARES	Union rules may require first class
1454	LIVING EXPENSES	Accommodations or Per Diem

Loan out companies (which a director or talent may work through) are not required to pay payroll taxes.

Everyone who is not working through a Loan Out Company (most of the crew and cast) is required to pay:

• FICA SS = Social Security 6.2% of the employee’s salary up to a maximum of $127,200.
• FICA MEDI = Medicare 1.45% of the employee’s salary on the first $200,000 and 2.35% above $200,000—contributed by the employer and 1.45% contributed from the employee salary) for a total of 2.9%
• FUTA Federal Employment Tax Act = 6% up to a maximum of $7,000. The employer must pay FUTA if the worker’s total wages equal $1,500 or more during any quarter of the year and/or if they employed one worker for 20 weeks of the year.
• SUI = State Unemployment rates depend on laws of that state
• WC = Worker’s Compensation (AKA Workman’s Comp) provides wage replacement and medical benefits for employees who are injured in the course of employment. It ranges from 4–7%, based on laws in that State and varies whether projects contain dangerous situations (stunts, special effects). If the production’s insurance policy for the production covers this, you need not apply it. There’s no cut off, it must continue to be paid regardless of employee earnings.

When your film uses a payroll service (great idea), they will charge you a fee as a percentage of payroll, such as 0.5%, or as a per-check fee. There are several payroll companies specializing in film: Entertainment Partners, CAPS, IndiePay, Media Services, EMS, Cast and Crew. If you work with an entertainment payroll service, they become the “Employer of Record”—a legal term, relieving the Producer from IRS, Workers Compensation and Union/Guild audits. A payroll company connects with your production accountant who must become an expert in applying union and guild rules and fringes.

In Movie Magic Budgeting (and many other budgeting-specific software programs) you can set up a total line for fringes as below: where the computer keeps track of those, making it easier for accounting purposes. In this example, this total includes all the Above the Line Fringes, like WGA, SAG, WGA payments and payroll-related fees.

Union/Guild Fringes are mandated by corresponding organization and are subject to change when guilds or unions update their agreements, so always consult the union for the most recent rates.

Table 4.53

Above the Line Fringes include:

• WGA; Pension 8.50%, Health and Welfare 9.50%
• DGA; Pension 5.50%, Health and Welfare 10.50%
• SAG; 17.30%

Below the Line Fringes include:

• DGA; Pension 5.50%, Health and Welfare 10.50%
• IATSE 6%
• SAG; 17.30%, 17% for B

You can add lines for Overtime and State Sales Tax, Vacation and Holiday Pay as is customary if you think you will need them, in addition to standard payroll taxes.

Below the Line: Production

We will work in a sequential way through categories in the order of their account number. Readers are encouraged to consider the Locations (3600) section of the budget early in the planning process, as that will inform many other Below the Line figures. Just as many decisions about film production stem from the choice of director, the same is true for locations. Where you will shoot will determine other factors of the project, who is hired, who is transported to a specific place, applying for local production incentives, available crew base. Once you know where (country, region, state, city) you want to shoot, pricing Below the Line costs is a straightforward process.

2000 Production Staff

Production Staff: consists of the folks managing the production office and overall logistics, wardens of the schedule and budget, hiring and making sure people get paid. Big productions might use all of the above crew in addition to a Line Producer and smaller projects only a few.

Historically, a studio, with many films in various stages of progress, had a Production Manager overseeing this production, among others—today, that position is more likely to bear the title Production Executive. Whether you employ a PM to manage the entire production and a Line Producer (non-union) to manage every “line” of the budget and a PM or UPM (DGA) (overseeing a second unit) depends on the budget and complexity of the production. Small films need just one UPM and possibly no line producer—in which case all managing the schedule and budget falls under the domain of the UPM.

Together the PM (overseeing office staff) and the 1st Assistant Director (the Director’s right hand overseeing the set) drive progress on the film on a day-to-day basis—keep everyone informed, make sure equipment is available, people where they are supposed to be. On behalf of the producer and director, these two make many hiring decisions and are often the front lines of information.

Compact crews may just include one AD then add another for a complex day, to handle paperwork, oversee actor preparation and work with background actors. Complex productions might utilize a 2nd and/or 3rd AD hired for cumbersome situations like moving large groups, to supervise PAs (production assistants).

Table 4.54

2001	LINE PRODUCER	(AKA “LP”) Keeps film on schedule and budget. Manages entire production, if working alone, spearheads prep, may break down script and manage schedule and budget throughout, reports to Producer. Logistical leader. $2,200–7,000/wk
2002	PRODUCTION MANAGER	(AKA “PM”) If working without LP, fulfills Line Producer duties. If working with LP, reports to LP to maintain budget and schedule. (DGA) $2,000–6,500/wk
2003	UNIT PRODUCTION MANAGER	(AKA “UPM”) PM may require support, or this person may oversee a 2nd Unit. (DGA)
2004	FIRST ASSISTANT DIRECTOR	(AKA “AD”) Front line of on-set information and safety, runs the set on behalf of Director $4,400–6,200/wk
2005	SECOND ASSISTANT DIRECTOR	As the 1 st AD is to the Director, the 2nd AD is to the 1st AD. Wrangles paperwork. Stands in for 1st AD if she must leave set $3,000–4,100/wk
2007	3RD ASSISTANT DIRECTOR	(AKA “2nd 2nd AD”) When necessary. $2,700–3,900/wk
2008	SCRIPT SUPERVISOR	Guards continuity within a film, usually by taking lots of pictures. (IATSE)$29–32/hr
2009	LOCATION MANAGER	Researches, Scouts, manages locations, (Teamsters) $1,400–2,000/wk
2010	ASST LOCATION MANAGER	Assist location manager as needed. (Teamsters) $1,200–1,400/wk
2011	PRODUCTION COORDINATOR	AKA POC (Production Office Coordinator) wrangles paperwork and safety training, keeps records. Works prep, shoot, wrap (IATSE) $1,250–1,350
2012	ASST OFFICE COORDINATOR/ SECRETARY	Assist POC as needed. $860–920/wk
2013	PA-OFFICE STAFF ASSISTANTS	Assist office with anything and everything. $75–200/day
2014	PA-SET STAFF ASSISTANTS	Assist set with anything and everything. $75–200/day
2015	PRODUCTION ACCOUNTANT	May be hired as a firm or individual. (IATSE) $1,900–2,100/wk
2016	ASST PRODUCTION ACCOUNTANTS	Assist the production accountant. (IATSE) $28–31/hr
2050	SAFETY OFFICER	Crew member videotapes rehearsals and safety meetings
2085	OTHER COSTS	Production office supplies, purchases and rentals

Whatever you call them and however their duties are divided, one of the LP, PM, or UPM is a chief keeper of the budget, in tandem with the AD for maintaining the schedule. They need lots of prep, all shoot and maximum wrap time, to open and setup the office and effectively close it out after meeting all billing, invoicing, returns, etc. at the end of the project. Inexperienced crew need 2 to 3 times more prep than shoot time, experienced crew can get away with less. The right arm of this person is usually the Production Coordinator, maintaining order in the office.

For example, let’s assume the production will use a Production Manager who is a DGA member. Set this account up carefully and you can copy/paste it to other DGA crew accounts. The account might look like this:

Table 4.55

Whether in a scheduling program, Excel or on paper, you can insert information so you don’t have to look elsewhere for it, the location of the hire (NY Hire), rate and union status—that’s a matter of personal taste. DGA members require production fees (weekly bonus paid when camera rolls) and severance (1 week of pay upon completion of assignment), while non-DGA does not. Computer rental and supplies are a good investment.

A non-union version of this account might look like the following:

Table 4.56

Non-union rates for production office staff:

Table 4.57

	Budget Ranges
	$1M or Less	$1M to $6M	$6M or more
Line Producer	$3,000/Wk	$4,200/Wk	$6,300/Wk
Production Supervisor	2,100/Wk	2,750/Wk	3,400/Wk
Production Secretary	1,200/Wk	1,500/Wk	1,750/Wk
PA in office or on set	13/hr	13/hr	15/hr

2500 Set Operations

Set operations consist of grips shading and manipulating light made by the electricians; the caterers and craft services workers feed everyone and the various technicians and artists working on set to keep everything set up and running smoothly.

Table 4.62

2501	FIRST COMPANY GRIP	(AKA Key Grip) Runs grip team, needs prep tie, production, some wrap. $29–32/hr
2502	SECOND COMPANY GRIP	(AKA Best Boy Grip) Assisting the Key Grip as needed. $26–29/hr
2503	DOLLY GRIP	Operates dolly smoothly (rolling camera around on wheels). $28–29/hr
2505	OTHER COMPANY GRIPS	Set up C-stands, apple boxes and sandbags. $26–27/hr
2507	SET PAINTER	On the spot painter fix any paint damage. $28–30/hr
2508	STANDBY CARPENTER	On the spot carpenter handyman. $28–30/hr
2509	RIGGING CREW	Prepares and rigs set ahead of the shooting crew. $800–1,000/wk per person
2510	OTHER LABOR	Extra folks to help setup, carry, move and control all of the gear. $20–25
2511	CRAFT SERVICE LABOR	Folks in charge of feeding everyone. $26–28/hr
2512	CRAFT SERVICE PURCHASES	The food, plates, supplies, snacks, soda, water, for cast and crew.
2516	PURCHASES	Sandbags, clips, screws, knives, gloves, tape, adhesives, chalk, you name it
2517	BOX RENTALS	The myriad equipment of tools, includes renting clamps, stands and grips
2518	EQUIPMENT RENTALS	Grip equipment
2519	CRANES	Crane needs a special operator and driver
2585	OTHER COSTS	Miscellaneous costs.
2598	LOSS AND DAMAGE	Insurance and the cost to replace or repair damaged items

A 1-ton grip truck costs about $175 per day, 2-ton truck $300, plus mileage, fuel, prep and loading charge. The bigger the truck, the more gear, the higher the per-day charge up to $1,000 per day. Additional and specialized equipment costs more and the Key Grip will guide you as to what that is.

2600 Special Effects

The special effects industry is growing quickly and is increasingly specialized, depending on the type of effect you are looking for. The most important thing if you are working on an effects heavy film, or one with one really dramatic, make or break effects, is that the F/X Supervisor is experienced in this type of effect and knows which effects houses will nail it. References from crew and post people are important.

This is a category that can be expanded as needed for your project. This section is specifically for mechanical effects, like fire, smoke, pyrotechnics, explosions, weather effects (Rain Birds, Snow Throwers, Foggers, Ritters for Wind), firearms (squibs for fake bullets) and electronic effects, stuff breaking and shattering (balsa wood and harmless sugar glass): you will need adequate time for preparation and safety, as well as to rehearse with the actors and stunt people.

CGI effects (AKA computer generated imagery) are in post production, as 4400 Visual Effects, but all effects require planning during preproduction for seamless integration into the film.

Table 4.63

2601	F/X SUPERVISOR	(AKA Keyman) Requires adequate time to prepare and plan with post house and to solicit bids. $1,200–1,800/wk (Big budget films $45/hr)
2603	COMPANY F/X TECHNICIANS	All of crafts people executing effects. $800–1,200/wk
2616	PURCHASES	Runs the gambit from green to blue screen material, and more
2618	EQUIPMENT RENTALS	Equipment to create the effects

4399 Total Fringes (Below the Line Production)

Union/Guild Fringes are mandated by corresponding organizations and are subject to change when guilds or unions update their agreements. Below the Line Fringes include:

• DGA 16%
• SAG 17.3%
• IATSE $2.46 per Hour
• Teamsters $2.46 per Hour
• Teamsters IATSE and Teamsters Trust Account $1.00 per hour

Add lines for Overtime and State Sales Tax, Vacation and Holiday Pay as is customary if you think you will need them, in addition to standard payroll taxes.

Table 4.77

Below the Line: Post Production

Post means “after,” so post production is what supposedly happens after shooting. However, planning for post production happens early in the preproduction process, your editor and post facilities have a big impact on the completed film and the editing process begins during principal photography, as soon as there is footage to edit.

Hire a post production supervisor, or assign these duties to an associate producer. This person will serve as a liaison, project manager and facilitator. Post production could be very complex and expensive, with multiple editors and offshore effects teams, it depends on whether the end film should be effects-laden, hit song and music-driven, or relatively streamlined if the editing department is one person using Final Cut nearby.

Advances in technology offer increased options in post production, so it’s important to understand exactly what has to happen and in what order and what the editor or lab requires to do their job.

A good editor makes magic on a daily basis and starts at the beginning of production. If you pay only 4 people in your crew, let it be the editor, the caterer, the sound person, and the DP. An assistant editor logs and tracks footage to help the editor do their job better (Motion Picture Editors Guild is part of IATSE).

Depending on your budget, you may hire a music supervisor or music producer, who will find a composer to write an original score (with the Director’s approval), buy music from a music library, or track down the cost of using pre-existing songs.

If you have a distribution deal in place, it is important to get the delivery requirements as soon as possible for production and also get them in the hands of the post production supervisor; it will be needed to make sure you complete all the final deliverables, on whatever format and aspect ratio is required.

CGI effects (AKA computer generated imagery) may include green or blue screen (so you can key out those wild colors and add any background), composites and matte shots (creating vivid backgrounds by combining parts of different images, sometimes overlaid additional hand drawn or computer images), rotoscoping and include extensive previsualization (AKA previs) to make sure the effects are well planned. The more numerous and elaborate the effects, the more expensive and larger this category will be and might swell to include animators, models, special computer programs, matte painters, compositors, or motion capture technology.

Without a distribution deal, the completed format of your project depends on the producer’s intended end use. Budget for sound sweetening and color correction in local labs to get the film as clear sounding and good looking as possible prior to making copies for festival and competition entry as the competition is fierce.

4700 Post Production Sound

In addition to music, sound consists of the recorded dialogue from production, creating and adding sound effects (foley) and recording dialogue (ADR or Looping) or narration for clear sound. No matter how lovely the images, amazing the music, if the audience cannot understand the dialogue, an important aspect of the film is lost.

Table 4.81

4703	TRANSFER COSTS	Transfer sound from the original format and/or DAT recording to editing format. Priced per foot, $0.35-.45/ft depending on format)
4706	SOUND PACKAGE	ADR, foley and mix. Record dialogue for clearer sound, requires bringing back actors. Foley artists find appropriate sound effects or create them. Foley stages $300–450/hr, Foley artists $375–500/day
4709	MIX	(AKA Dub) Pre-dub $200–400/hr. Final dub—mixed to stereo sound all effects and music ($350–800/hr). Sound sweetening, priced hourly $200–500/hr. Layering dialogue tracks and music to create depth, mixed in time to picture. Cost varies, $1,000–4,000/day or hourly depending on the service
4710	MAND E	M and E (musicand effect) tracks, plus dialogue
4717	RENTALS	Stage rental and equipment foley, costs vary depending on where the sound work is done. Recording studios charge by day ($1,200–5,000), or work stations and pre-dub by the hour ($150–500/hr)
4785	OTHER COSTS	Create temp dubs for previews
4790	SOUND PROCESS LICENSE FEES	Dolby licensing, noise reduction, surround and stereo ($10,000 per feature)

5299 Total Fringes (Below the Line Post Production)

Fringes for post production include all payroll taxes to employees working in post production.

Table 4.83

Union/guild fringes include IATSE payments for picture and sound editors, their assistants and foley artists, AFM and SAG if applicable.

Below the Line Fringes include

• DGA 16%
• IATSE $2.46 per Hour
• IATSE and Teamsters Trust Account $1.00 per hour
• Possibly AFM (30%) for musicians working on your score
• SAG 17.3% Looping, Singers

You can add lines for Overtime and State Sales Tax, Vacation and Holiday Pay as is customary if you think you will need them, in addition to standard payroll taxes.

Below the Line: Other Expenses

Other expenses are those that apply to the production as a whole (insurance and legal costs), the future of the production (publicity and marketing), financing and miscellaneous costs that do not fit easily into one particular category. These types of expenses are calculated as “contractual”—a certain percent based on the entire budget.

Publicity costs include everything paid for to the end of getting the film out there—postcards, premiums, website, festival and market and contest applications. Publicity is just as important as making the film itself. Plan marketing that fits with the project from prep, allocate a robust budget and get someone working on this from the outset.

Stacey Park’s Insiders Guide to Indie Film Distribution (Focal Press) and Jon Reiss’ Think Outside the Box Office (jonreiss.com) offer great tips in this arena.

Insurance may be purchased for the duration of the shoot (short term production), as is common on features; or a year-long policy (annual producer’s insurance policy, or production DICE: Documentary, Industrial, Commercial, Educational) is more practical for documentarians, longer-term projects, or a company with a series of projects over a year.

Filmmakers think “I can’t afford insurance,” but you can’t afford to get sued either, right? General liability, employer liability, auto and workmen’s comp, at the minimum, will help you sleep better at night. The upfront cost is relatively small compared to catastrophic damages in the case of a lawsuit, severe injuries or death.

Legal costs range from 5–15% of the total budget, depending on the source of your material, amount of legal contracts, negotiation with agents or managers, chain of title, complexity of the advice needed and help with a distribution contract. Some entertainment lawyers will work with you on an “a la carte” basis, so you are paying for one thing at a time; other firms will charge a % of the budget. Discuss your needs thoroughly with your potential attorney.