Freeway Residuals Payroll

When working with union represented talent and crew on your production, you may become obliged to pay revenue and performance-based residuals compensation.

Our service

When working with union represented talent and crew on your production, you may become obliged to pay revenue and performance-based residuals compensation.

To ensure that you meet your obligations towards your talent and crew as well as the unions representing them, Freeway Payroll can take care of calculating residuals compensation for all major unions, including SAG-AFTRA, DGA, WGA and IATSE.

How does it work?

We have developed a dedicated residuals payroll service that concentrates on increasing transparency around the applicability of residuals compensation and accrual of payables based on project sales, facilitating a smooth process of collecting a project’s necessary documentation including sales and revenue related information, and timely issuance of checks to talent.

Why Freeway Payroll?

Freeway Payroll solely concentrates on the process of calculating and paying residuals compensation. For Freeway Payroll, performing a smooth residuals payroll process is the only objective. On productions where Freeway also acts as collection account manager, Freeway Payroll offers a seamless one-stop-shop solution for your project’s complete revenue administration. Freeway’s payroll processing is in partnership with ABS Payroll.

Our aim:

With our residuals payroll service, we offer you a straightforward and easy solution that will significantly reduce administrative burden for you, increase transparency on residuals due on your project’s performance, relieve tension with the unions, and gives you and your talent and crew peace of mind.

Engaging Freeway Payroll as the residuals payroll house is simple and the process is described below:

A –Set Up Phase (Data Collection)

1. Data Collection

(if applicable) Freeway collection account management (Freeway CAM) or any other collection account manager executes a collection account management agreement (CAMA) with producer and other parties.
Freeway Payroll sends the Initial Interest Letter requesting documents needed from the producer (i.e. work order, SAG Final Cast list (as applicable), DGA (as applicable), WGA details (as applicable), screen credits, Signed Signatory agreement, & fees due).

2. Calculation

Freeway Payroll will generate the residuals calculation model using the information agreed to by you and the unions (if applicable).

3. Invoicing

Freeway Payroll will deliver the invoice and a copy of the residual calculations to the union(s) and producer.

B –Payment Phase (Payment Processing)

4. Payment

Freeway CAM or any other collection account manager will remit payment to Freeway Payroll from the Residuals Set-Aside available in the collection account once invoices are provided by Freeway Payroll.
Producers and rights holders pay the invoices with the residuals calculation issued by Freeway Payroll.
The residual payments are processed in the accounting system and the checks are cut by Freeway Payroll.

5. Check Process

Freeway Payroll will process residual checks and send the relevant unions (i.e. SAG-AFTRA, IATSE, DGA and/or WGA, as applicable) sealed checks, check copies, and a copy of the residuals calculation worksheet.

C –Future Residuals Phase

Additional Residuals

When issuing a new collection statement, additional residual payments may be due based on any new Gross Receipts. Freeway CAM or any other CAM will provide information about new Gross Receipts when issuing the collection statement. Freeway Payroll will then update the calculation of the residuals due.

Freeway Payroll will process the checks as laid out above.

For further information, please contact us here.