Producing : How do indie film producers make sure that US guild residuals are properly paid? by David Zannoni

David Zannoni

How do indie film producers make sure that US guild residuals are properly paid?

Hi Stage 32 community, have you ever dealt with US guild residuals or wondered how residuals are calculated and paid?

Producers can engage a CAM and set up a collection account. One of the main functions of a collection account is to create a residuals set aside, to reserve from each dollar generated by domestic and international distribution, a fixed percentage for payment of residuals.

At the same time, a payroll house will need to be hired to calculate the exact amount of residuals actually payable.

The payroll house periodically invoices the CAM to pay, from the residuals set aside and on behalf of the producers, the residuals to the guild members (like actors, directors and screen writers).

This mechanism guarantees transparency and ensures that the guild members receive their residual payments, and at the same time, provides the producers with the comfort that residual obligations are dealt with properly.

Do you want to know more about payment of US guild residuals? Read my article below on Stage 32:

https://www.stage32.com/blog/everything-you-need-to-know-about-residuals...

Benjamin Elliott

Thank you for sharing! Very informative.

Ashley Renee Smith

Great share, David Zannoni! Thank you!

Xochi Blymyer

That's good info David. I'm on the other side receiving the residuals so interesting how they are calculated. I have often wondered how they get calculated.

Maurice Vaughan

Incredible breakdown of residuals, David Zannoni! I didn't know residuals could be paid up front out of the budget. Thanks for writing this blog! It's a must-read!

Jacqueline Maddison

Hi David, is this an escrow account? Or a bank account?

Sam Sokolow

Always great to see you here, David Zannoni, and you always bring the knowledge and guidance that the community needs. Thanks, brother!

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