Frequently Asked Signatory Questions

The Producer-Writers Guild of America Pension Plan and the Writers’ Guild-Health Fund recognize that you have many questions regarding reportable contributions paid by a Signatory Employer. To help you better understand our business rules and Fund policy listed below, here are some common questions and answers.

In general, in order to report or make any contribution to the plan or fund, you must sign a collective bargaining agreement. The collective bargaining agreements define the covered services for which contributions are due and the basis for computation of those contributions. The Board of Directors/Trustees of the Plan and the Fund are responsible for the collection of contributions in accordance with those agreements. Only Companies signed to the appropriate Agreement can make contributions to the Pension and Health Funds. Note that federal law (ERISA Section 515) requires that contributions must be made in accordance with the terms of the plan. Please Contact the Signatory Department of the Writers Guild of America, East at (212) 767-7837 or the Writers Guild of America, West at (323) 782-4514 for information on becoming a Signatory Employer.

Q- I am a New Employer. I need to report Contributions for two writers.  I have no idea how to go about this process.

A- You must first sign a Collective Bargaining Agreement with the Writers Guild East or West.

Q- Who or what is this Organization?

A- The Writers Guild of America is a separate entity from the Trust Funds. The Writers Guild is the organization that negotiates Collective Bargaining Agreements with the Signatory Employers. The Producer/WGA Trust Funds cannot accept your contributions unless you have signed a Collective Bargaining or Assumption Agreement.

Q- Do the writers have to be members of the Writers Guild of America?

A- No. As long as the writers perform covered services for a Signatory Employer, the Fund /Plan can accept Contributions on their behalf.

Q- Now that I have signed the Collective Bargaining Agreement, the Writers Guild says I need to fill out a Report of Contribution Form. What is that Form?

A- A Report of Contribution Form is the reporting method that allows the Plan/ Fund to accept contribution from all Signatory Employers according to a writer’s written contract and the rules and guidelines of the Collective Bargaining Agreement.  It also provides specific instructions and information on reportable Contributions. The form can be found on our website at www.wgaplans.org under Contribution and click on “forms”.

Q- What is the percentage for Pension and Health Contribution?

A- The current (May 2009) percentage rate according to the 2008 Collective Bargaining Agreement is 6 percent of the reportable earnings for Pension Contributions and 8.50 percent of the reportable earnings for the Health Fund. Example if the reportable earnings are $50,000.00, the Pension Contribution will be $3.000.00 and the Health Contribution will be $4,250.00. These rates change periodically. For more information regarding applicable rates, please log on to our website at www.wgaplans.org

Q- When are Contributions due?

A-Weekly employers are required to remit contributions, along with a completed Report of Contributions (either transmitted electronically or on paper) not more than ten (10) business days after the close of the payroll week during which the writer is paid or due compensation. Contributions are deemed to be delinquent if they have not been received within thirty (30) calendar days from the "due" date. If the payment is not made by the end of the thirty (30) day grace period, interest will be charged from the end of the week in which the writer was paid or due contributions.

Monthly employers are required to remit contributions, along with a completed Report of Contributions (either transmitted electronically or on paper) not more than ten (10) business days after the close of the month during which the writer is paid or due compensation. Contributions are deemed to be delinquent if they have not been received within ten (10) calendar days from the "due" date. If the payment is not made by the end of the ten (10) day grace period, interest will be charged from the end of the month in which the writer was paid or due contributions.

The Administrative Office will help you determine if you are a "weekly" or "monthly" employer.

Q- What if the Contribution is Reported Late? Will I be penalized?

A- You will not be charged a late fee but the Fund/Plan, under the guidelines of ERISA, requires that contributions must be made in accordance with the terms of the plan, and that ERISA Section 502g-2 provides for mandatory interest on unpaid contributions at the rate established by the Trusts.

B- When contribution are deemed late, Interest is calculated and accumulates at the rate of 10% per annum (approximately .83% per month), with certain limitations on continuing interest in those cases in which delinquent contributions are paid before suit is filed. (No limitation applies to those cases in which suit is filed.)

Q- What if I report Improper Contribution?

A- If an Employer contributes on behalf of a writer who did not perform covered writing services, or if the employer contributes on a greater amount than a writer was paid, or if the earnings are reported in an incorrect time period the, the result may be the distribution of benefits to which the writer is not entitled. In such cases, the employer is liable to pay back all the benefits paid out on behalf of the writer. The Trust Fund shall also recover from the employer the Health Fund’s cost of collecting these amounts, including attorney fees, interest and audit fees.

Q- Is all Compensation Subject to Contributions?

A- Not all Compensation is subject to Contributions. Signatory Employers should contact the WGA(E or W), or refer to Article 17 of the MBA book, to determine if the compensation being paid to their writer is reportable or subject to Pension and Health contributions. You can also see more information on Article 17 by going to www.wgaplans.org and select contributions tab click on Rates/Information/Forms then click on Article 17 for detailed information.

The Employer may also contact the Employer Compliance Department at employercompliance@wgaplans.org or call (818) 846-1015 ext. 5

Q- Is the Purchase of a script subject to Contributions? What about Option payments?

A- No, but if the writer is also hired to polish or rewrite the script then the Purchase also become reportable up to certain limits. Please contact the Employer Compliance Department for more information. Options are not subject to contributions.

Q- I am reading your form. It is rather busy. What is a project ID?

A- The project ID is any number or code that your company uses to identify a project. This helps ensure that the earnings are credited to the right project for ceiling calculations.

Q- Could this form be obtained via Fax, E-mail or downloaded from your website?

A- Yes the E-mail address is contributions@wgaplans.org or you can fax your request to the Contribution Department at 818 566 8445 or 818 526 6550 or log on www.wgaplans.org go to Contributions and click on forms.

Q- Is the work range based on when the writer gets paid?

A- Rarely. Usually the work range is based on when the writing services are performed. For example, delivery of a final draft on June 17 th will be listed on the June Report of Contributions. If a writer never performs the hired service, the contributions are allocated to the time period when the writer actually receives the compensation.

Q- I have a writer who is hired as a writer and producer. How do I pay his contributions? 

A- For writers working in an additional capacity, please refer Article 14 of the Basic Agreement for current weekly reportable amounts. You can also see more information on Article 14 by going to www.wgaplans.org and select contributions tab click on Rates/Information/Forms then click on Article 14 for detail information and instructions.

Q- My company is located outside the US. Should I report Pension and Health Contribution? 

A- Yes.  If you are a Canadian company, your company must be signed to a Side Letter agreeing to abide by the MBA rules and the writer must receive a waiver of the Guild's Working Rule 8. Please contact the Canadian Side letter Coordinator at Writers Guild East or West for signatory documents, WR8 waivers, residuals on Canadian Side Letter projects, and all related inquiries. All other companies located outside the US, should call the Trust Funds at 818 846 1015 or the Guild West at 323 782 4516 and the Guild East at 212 767-7837 for additional information.

 Q- How should I report Contributions for a Team of 2 Writers?

A- A team of 2 writers will share one ceiling. If the compensation is divided equally in the contract, 50% of the ceiling will apply to each writer. For example, on a theatrical motion picture each writer will have $112,500 reported to pension and $125,000 reported to health if their compensation is $250,000 or greater for the team. If the team does not split the compensation equally, the ceiling will be allocated according to the percentage of compensation received by each writer (25%/75%, or 40%/60% or as indicated in the writers’ contract.).

Q. I have assumed multiple Projects from various companies. How do I proceed to report Pension and Health Contributions?

A. This is reported under an Assumption Agreement. You must contact the Writers’ Guild (E or W) for information on Assumption Agreements. The Fund cannot accept contribution without an Assumption Agreement in this situation.

Q.  I am a Signatory Employer signed to the current agreement. I also owned two signatory companies in which I am a co-writer, are their any rules regarding ownership?

A.  Yes, this is considered an owner /writer as well as an affiliated owner /company.  The Internal Revenue Code treats commonly controlled entities as a single entity for pension calculation purposes.  In general, common controls are defined as 80% ownership. The rule is most relevant for purposes of applying the limits on benefits and compensation.

All writer/owners (or their family members) who have more than 10 percent vested interest in a company must contact the Employer Compliance Department at (818) 846-1015 ext. 5 for instruction and information on Pension and Health Contributions. Special rules apply. Please visit www.wgaplans.org and click on the tab labeled Rates/ Information/ Formsfor an information sheet.

Q- Which guild do I contact for information on Interactive Program Contract, New Media, Informational, Program Contract, and Made for Internet, Character Payments and Clip Payments?

A- You contact the Writer’s Guild East at (212) 767-7800 or www.wgaeast.org and Writers Guild West at (323) 951 4000 or www.wga.org

Q. Is a Bonus Subject to Contribution? Is an Option Subject?

A- Yes a Bonus is reportable up to the ceiling per project. The applicable ceiling is determined by the writer’s contract date.

B- Options are not reportable. However, if an Option become applicable against the Purchase Price and a Purchase is made, the Purchase becomes reportable if the same writer is hired to perform additional writing services. The Option Compensation is then reported as part of the Purchase Price, never on its own.

For Signatory questions you may contact the Writer’s Guild at the number listed above or our Signatory Coordinator at 818 526 3145.

For Employers reporting contribution to the Pension Plan and Health Fund, it is mandatory you provide that your company’s Federal ID Number. In addition please pay attention to item 1 and 27 of the Report of Contributions Form and provide the Plan/Fund with a fax number, Phone number and a contact person.

Q. What type of checks should be remitted?

A- Please remit payments as follows: Cashier Check, Wire Transfer, Money Orders, and Company Checks. For wire transfer instructions please contact our office @ 818 846 1015 ext 147. Note: all personal checks will be returned unless the Signatory Employer is an individual.

As a reminder, the Pension Plan and Health Funds are Taft-Hartley Trust Funds governed by the guidelines of ERISA and only accept Employer paid Contributions .