Employer Obligations

Obligations of the Employer to Remit Pension Plan and Health Fund Contributions per the Minimum Basic Agreement (MBA) or other Collective Bargaining Agreement.

Signatory employersAn employer who signs a collective bargaining agreement with the Writers Guild of America, agreeing to comply with its terms. are required to make Pension Plan and Health Fund contributions on behalf of all writers hired by them to perform covered writing servicesServices that are subject to Pension Plan and Health Fund contributions., whether or not the writer is a member of the Writers Guild of America. Article 17  of the Writers Guild of America Minimum Basic Agreement (MBA) explains the the obligations of the Signatory Employer with regard to making Pension Plan and Health Fund contributions to the Trusts and details those levels of compensation and purchases on which contributions are due.

A Company must be signed to a Collective Bargaining, Assumption or Distribution AgreementA secondary agreement allowing a company to distribute a product. This company is responsible for making pension and health contributions on the compensation it paid to the writer, up to the ceiling as it occurs. in order to make these contributions. The Signatory Departments of the Writers Guild of America East and West administer the process of becoming a signatory employer.  The WGA Signatory Department notifies the Trusts when a company signs their Collective Bargaining Agreement. The Signatory Coordinator at the Trusts sends a New Signatory Welcome Package to the employer and encloses copies of the Report of Contributions along with written instructions   on how to fill out the form to correctly report earnings and remit contributions.

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 delinquentWhen an employer does not report covered earnings and remit contributions in a timely manner, the Employer Compliance Department will determine the amounts due and bill the employer for contributions and penalty payments (such as interest, continuing interest, liquidated damages, etc). Employers are required to make timely reportings without receiving a bill from the Trusts. 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, interestAn amount charged to Employers when contribution payments are not remitted in a timely manner [per ERISA Section 502 (g) (2)]. Employers are required to remit contributions in a timely manner without an invoice from the Trusts. 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 delinquentWhen an employer does not report covered earnings and remit contributions in a timely manner, the Employer Compliance Department will determine the amounts due and bill the employer for contributions and penalty payments (such as interest, continuing interest, liquidated damages, etc). Employers are required to make timely reportings without receiving a bill from the Trusts. 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, interestAn amount charged to Employers when contribution payments are not remitted in a timely manner [per ERISA Section 502 (g) (2)]. Employers are required to remit contributions in a timely manner without an invoice from the Trusts. will be charged from the end of the month in which the writer was paid or due contributions. Contributions not received by the 24th of the following month are delinquent.

After these periods, Regular (and possibly Continuing) Interest will accrue. Interest accrues at the rate of .83% per month. The Trust Funds will help you determine if you are a monthly or weekly reporter.

Please be aware that federal law [ERISAThe Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for pension plans. The Pension Plan strictly complies with ERISA. Section 515] requires that contributions must be made in accordance with the terms of the plan, and that ERISA Section 502(g)(2) provides for mandatory interest on unpaid contributions at the rate established by the plan.

Salary advancesAn amount paid to a writer prior to the commencement of services. Salary advances are reportable in the time period in which they are paid, not when the writer performs the services. are reportable when the writer is paid, not when he/she performs the hired services.

Not all Compensation is subject to Contributions.   Signatory Employers should contact the WGA(E or W), or refer to Article 17 The section of the Minimum Basic Agreement that describes the pension and health contribution reporting requirements, audits, and establishment of the Audit & Delinquency Committee.of the MBA, to determine if the compensation being paid to their writer is reportable and subject to Pension and Health contributions. You can also see more information on Article 17   by going to www.wgaplans.org and select the Contributions tab; click on Rates/Information/Forms, , then click on Article 17 for detailed information, or refer to the Reportable Earnings Summary Schedule   also under Rates/Information/Forms.

Employers may also contact the Employer Compliance Department at [email protected] or call (818) 846-1015, press "3", then "1" when prompted. Your call may be monitored for quality assurance.

Article 17 also contains the provisions by which the Trusts conduct auditsA process undertaken by the Trust Funds to determine if contributions were remitted in the correct amounts and in the appropriate time periods by a signatory company. When an employer signs a collective bargaining agreement with the WGA, they agree to be audited.. By signing a collective bargaining agreementAn agreement between an employer and the Writers Guild of America. The agreement sets out the wages and working conditions for writers hired by a signatory employer., you agree to allow the Trusts to conduct an audit. Generally, within a three-four year cycle, the Trusts review and may auditA process undertaken by the Trust Funds to determine if contributions were remitted in the correct amounts and in the appropriate time periods by a signatory company. When an employer signs a collective bargaining agreement with the WGA, they agree to be audited. your company. If you want to be reviewed at the end of your project to insure that contributions have been remitted correctly, please contact the Employer Compliance Department and we will schedule an audit. The sooner discrepancies are discovered, the smaller the interest charges.

Updated for 5/2/14