What does Fringes mean?
Fringes refers to the employer-side benefit contributions required under union agreements — including payments to the SAG-AFTRA Health and Retirement funds, pension contributions, and other mandated benefits — that productions must pay on top of performers’ and crew members’ base wages. Fringes are calculated as a percentage of covered earnings and are paid directly to the relevant union benefit funds by the production rather than to the individual performer. In production budgeting, fringe costs are a significant addition to labor costs and must be accurately calculated to avoid budget overruns.
Example:The production accountant calculated the total labor cost for the cast by adding the SAG-AFTRA fringe percentage on top of the contracted rates — a calculation that increased the effective cost of each performer by approximately 17 percent above their quoted fee.
Example: The line producer reminded the first-time director that the budget numbers they had been discussing were base wages only — the actual cost of each cast and crew member was meaningfully higher once fringes, payroll taxes, and payroll company fees were added to the calculation.
Did you know?
Fringe rates vary by union agreement and are periodically renegotiated as part of the collective bargaining process. Productions must stay current with applicable fringe rates because using outdated calculations can result in significant underpayment to benefit funds — a compliance failure that can trigger audits, penalties, and legal action from the relevant unions. Entertainment payroll companies are essential partners in ensuring fringe calculations are accurate and current.
You can also find “Fringes” and related terms in this category: Administrative and Financial.
