Filmmaking 101: How to Navigate SAG-AFTRA Low Budget Contracts

Want access to the most professional and experienced actors for your next project? Then you'll want to make sure you're producing under a SAG-AFTRA contract so you can hire union performers.  However, we know navigating the signatory process and on-set paperwork can feel....daunting. But, we're here to break down the four most popular, low- budget, SAG-AFTRA contracts for you, so you can level up the talent on your indie project.  WMM President (and our in-house SAG-AFTRA consultant, as she has been involved with the organization for almost a decade) Aubrey Mozino, discusses the factors you'll need to consider such as how much the overall budget of the project is, where the project is slated to land (distribution? festivals?), specific elements of the project (nudity? stunts?), and the various paperwork that accompanies each contract (Exhibit G? Pension & Health Remittance Form?). It's a handful, which is why we provide services that can handle this entire process for you, but it is good practice to at least attempt to understand how to approach it all.  

The Micro-Budget Project Agreement (MBA)               

The MBA is a game changer for folks who have been daunted by SAG-AFTRA contracts. Applying for the MBA is a breeze. You only fill out one form, which is essentially just a title registration, and then boom! You’re good to go!  Most terms and rates will be subject to negotiation between producer and performer and there aren’t even any contributions to pension and health under this contract.

What Projects Qualify?

• Budgeted at $20,000 or less per picture or per episode
• Recorded entirely in the US
• Live Action [No Animation allowed!] 
• Scripted and Unscripted Projects

Where can you show it?

• Film Festivals
• Free to the Consumer New Media (AVOD) like YouTube, Instagram 
• Required Screenings for Academy Award Consideration 
• Public Access TV
• For Demo Purposes
• In The Classroom (student producers)

What isn’t allowed?

• *Nudity/Simulated Sex 
• *Stunts 
• Animation
• Commercials
• Music Videos
• Video Games 
• Audiobooks/Podcasts/Radio Plays

*If your project had nudity or stunts you’ll want to apply for either the SPA or New Media contracts instead. 

Pay Rates: 

Subject to negotiation between the producers and performers and deferred salaries are allowed.  However, even when deferring salaries you’ll need to keep in mind all state and federal minimum wages. 

Can You Join the Union from Working This Contract?

Nope, sorry. A non-union performer could work on 1,000 MBA projects and it still would not make them eligible to join the union. However….scroll down and check out the SPA or New Media contracts for pathways to membership. 

Pro Tip: Although the Micro-Budget Agreement does not require any on set paperwork, we highly recommend you still fill out Exhibit G’s (time sheets) and performer contracts for all principal performers in case you end up selling the project and need to renegotiate performer pay or exhibit it on a paid platform and need to pay out deferred salaries. This way you’ll have a record of what salaries were paid, which were deferred and the hours worked for all cast members. 

Short Project Agreement (SPA)

This is the contract you’ll need if your short film contains elements like nudity or stunts not or has a budget over $20,000 and a run time of less than 40 minutes. 

Requirements: 

• These projects still have to shoot entirely in the US,
• Photography must be completed within 30 days
• Only for “one off” projects – nothing episodic! 
• No Video Games
• No Animation
• Under $50,000 Budget
• Less than 40 Mins runtime 

SAG-AFTRA staff field thousands and thousands of submissions for these low budget projects each year and the signatory process is much more time consuming. So we highly recommend you submit your initial paperwork at LEAST THREE weeks before you start filming or rehearsing actors to give you and the staff some room to breathe.

Pay Rate: 

Minimum rate for principal performer salaries is $241/8 hour day (but your actors are always welcome to negotiate a higher rate!), but deferred salaries (for everyone except stunt performers) are still permitted under SPA. For any salaries that are NOT deferred you also need to budget 21% (current until 2025) of gross wages for a contribution to each SAG-AFTRA’s performer’s pension and health (P&H). If salaries are deferred you can also defer P&H until payments are triggered. 

Background: 

• The first ten (10) background actors (BG) per day within background covered zones (NY and LA are covered) must be given a SPA background actor contract.  The rate for background actors is negotiated between the producer and the actor but MUST be at least minimum wage or it can be deferred. 
• If non of your background actors are union you can give your non-union BG actors a “waiver” which basically means they’re working as a union BG performer that day. Payment can still be deferred, and no pension and health contribution needs to be made if they’re non-union.  
• Non-union Performers who work 3 SPA background jobs are able to join the union!
• Pension and Health contributions must be made for any SAG-AFTRA BG actors you’re covering and not deferring payment. The rate as of August 2022 is 20.50%.

Can You Join the Union from Working This Contract?

YES! You become “able” to join the union from working 1 principal performer role under the SPA contract whenever you’re ready.  However! Unlike higher budget feature films or TV that create pathways to membership, you will NOT be searchable in the system as being “SAG-AFTRA Eligible.” In order to join the union, contact the Membership office at SAG-AFTRA and say you’re ready to join. They’ll ask to see proof you’ve worked on an eligible job (show them that SPA contract) and once you pay the initiation fee you’re in the union! But, again, casting directors who look you up in SAG-AFTRA's system will not see you listed as “eligible.”

How To Get Started: 

• Fill out the form here. 
• After a few business days a SAG-AFTRA rep will send you a zip file with the signatory documents that you will need to fill out. This will include: 
• A Health and Safety Questionnaire (for how you plan to handle COVID protocols and testing on set.)
• A Pre Production Cast List (PPCL) where you’ll input all the contact info, day rate, number of days of work, and SAG-AFTRA ID’s or last 4 digits of their SSN for all principal performers, 
• If signing as an entity you will need articles of incorporation, bylaws/operating agreements, and a tax ID number. If signing as an individual you need photo ID. Remember, the signatory needs to be the person or company who owns the copyright. 
• You’ll also need to send: 
• Script with title page
• Detailed line item budget with all actor salaries (for any performers with deferred salaries you’ll need to list the amount you’re deferring) and Pension and Health contributions
• Shooting Schedule or Day Out Of Days (DOOD) for all performers. 
• Once you’ve returned those files you’ll get a link via Docusign to sign the agreement and Pension and Health letter (stating you agree to contribute the correct P&H amount if salaries are not deferred.) 

Once You’re Cleared: 

Your rep will send you another zip file with the on-set paperwork you’ll need to complete. 

• Exhibit G Timesheet - This is the time sheet where performers' hours and meal breaks are logged and the performers sign at the end of each day.
• Principal Performer Contract - This is the employment contract that the producer and each principal performer must sign for the Short Project Agreement.
• Background Performer Contract -This is the employment contract that the producer for the first 10 covered background actors must sign. 
• Final Cast List - After you wrap you’ll submit a final report of all the days all the performers actually worked, their SSN, address and gross salary. 
• Pension and Health Remittance Form - If you’re not using a payroll company (which we HIGHLY recommend you do since all SAG-AFTRA actors need to be paid as employees) this is where you’ll calculate the pension and health contributions for all SAG-AFTRA, non-deferred performers and send this form in with a check. 

Low Budget New Media Agreement

SUPER similar process to the SPA contract, except this agreement is for projects that are episodic in nature and under $50,000. However, if your project doesn’t have stunts or nudity and is under $20,000 you’re definitely gonna want to use the Micro Budget Agreement instead as it’s a MUCH easier process.

Pay Rate: 

• Deferred pay allowed if only distributing on free to consumer platforms like YouTube, Social Media
• Principals: $125/day (Day = 8 Hours) minimum for Principal Performers 
• Background: Negotiable (Minimum wage must be met)
• Contributions for pension and health (P&H) must be made for all non-deferred salaries 

Background: 

Same as SPA (Short Project Agreement).

• The first ten (10) background actors (BG) per day within background covered zones (NY and LA are covered) must be given a New Media background actor contract. The rate for background actors is negotiated between the producer and the actor but MUST be at least minimum wage or it can be deferred. 
• If non of your background actors are union you can give your non-union BG actors a “waiver” which basically means they’re working as a union BG performer that day. Payment can still be deferred, and no pension and health contribution needs to be made if they’re non-union.  
• Non-union Performers who work 3 New Media background jobs are able to join the union!
• Pension and Health contributions must be made for any SAG-AFTRA BG actors you’re covering and not deferring payment. The rate as of August 2022 is 20.50%.

To get started: 

• Fill out this form.
• Collect your:
• Budget
• PPCL
• Script with Title Page
• Corporation Documents or Photo ID if signing as individual
• DOOD (Day Out of Days) or Shooting Schedule   

On Set/After You Wrap Paperwork: 

Same as the SPA contract above!  

• Exhibit G Timesheet - This is the time sheet where performers' hours and meal breaks are logged and the performers sign at the end of each day.
• Principal Performer Contract - This is the employment contract that the producer and each principal performer must sign for the Short Project Agreement.
• Background Performer Contract -This is the employment contract that the producer for the first 10 covered background actors must sign. 
• Final Cast List - After you wrap you’ll submit a final report of all the days all the performers actually worked, their SSN, address and gross salary. 
• Pension and Health Remittance Form - If you’re not using a payroll company (which we HIGHLY recommend you do since all SAG-AFTRA actors need to be paid as employees) this is where you’ll calculate the pension and health contributions for all SAG-AFTRA, non-deferred performers and send this form in with a check. 

Can You Join The Union From Working This Contract?

Yes! You only need to work 1 principal performer job on a Low Budget New Media project in order to be "able" to join the union. Like the SPA contract, you will not be searchable in the system as "SAG-AFTRA Eligible" but with proof of employment, and the initiation fees you will be able to join the union whenever you're ready. Contact the membership office for more info!

Ultra Low Budget Project Agreement (UPA)

Okay, you’re ready to shoot a feature film and your budget is over $20,000? It’s time to upgrade to the Ultra Low Budget Project Agreement (UPA)! 

Requirements: 

• Feature length projects under $300K (if under $20,000 see the MBA contract above) 
• Must shoot entirely in the USA. 
• Performers can’t be told to “hold” a day unless they’re compensated 
• Payment must be made by a payroll house and payments are due the Thursday after each work week
• The project can be shown at:
• Film festivals
• On new media free-to-consumer platforms for thirteen (13) consecutive weeks
• Before the Academy of Motion Picture Arts and Sciences for possible Academy Award consideration;
• Producer may exhibit the Project for one (1) week in a paying movie house to qualify for Academy Award consideration
• To non-paying, non-public, established entertainment industry members and/or prospective financiers to showcase the talent of the producer, director, writer, performers or other members of the team

Pay Rate: 

• ALL PROFESSIONAL, PRINCIPAL performers (including non-union professional principal performers) must be paid at least 20% of SAG-AFTRA Basic Agreement Scale which is currently at $241/day (8 Hours) effective through 2025.
• No deferred pay allowed. 

Background: 

Zip. Zilch. There is NO background coverage for this contract so you’re free to negotiate whatever arrangement you want for BG.

To get started: 

• Fill out this form.
• Line Item budget that has explicit line items for:
• COVID PPE, sanitizer, testing, and COVID Compliance Officer
• Day rates for ALL cast (including non-union cast) and their gross salary 
• Individual line items for any SAG-AFTRA actors Pension and Health contributions (currently at 21% of their gross salary)

• Full Script with Title Page 
• Proof of the project being registered with the Copyright Office. Want to learn more about this process? Read our blog on this here.  
• Incorporation documents for the production company or photo ID of the person who is applying for the signatory (remember, the signatory ALSO needs to be the copyright holder on the project.) 
• A PPCL (Pre Production Cast List) with as many principal actors that you’ve cast at this point
• Day Out of Days (a spreadsheet that lists the days every principal actor is called. Use the template we linked or create your own.) 
• Health and Safety Questionnaire (get your Covid Compliance Officer to help fill this out)

Note: Most of the time SAG-AFTRA will require a security deposit (either by wire or cashier’s check) to ensure producers don’t spend all the money on production and don’t have anything left over to pay the actors. The number changes for each production based on the number of performers and size of the budget, but it can be in the ten’s of thousands. This money will not be returned until after production wraps and you’ve submitted all the required paperwork.

On Set Paperwork: 

• Exhibit G/Time Sheet for each day of production
• Principal Performer Contracts
• Final Cast List (at the conclusion of principal photography) 
• Final Cost Report (after you wrap) reporting the actuals for all the salaries of the performers

Pension and Health: 

Since you’re required to use an entertainment payroll house to process performer payments they will automatically calculate and send in the correct pension and health amounts and paperwork for you! Daunted by payroll? We get it.  WMM can completely handle the onboarding and processing of payroll for you. Give us a shout. 

Can You Join the Union From This Contract?

Yes....if you've worked 3 UPA projects.. After working on 3 principal performer jobs on 3 UPA's you will become "able" (NOT "eligible") to join.

Ok... deep breath. If you made it this far, congratulations. You know A LOT more than most producers. Hopefully, you feel equipped to make the right decision for your project. If you still feel overwhelmed by it all, feel free to reach out to us and we can help steer you in the right direction. If you are interested in a production consultation click here, if you are looking to hand over the bulk of the processing of your actor contract paperwork click here, and if you want us to be your full-on virtual production office click here to see all the services we offer. 

Written by Aubrey Mozino

Described as a “tornado in a linen closet,” Aubrey is a NYU and William Esper Studio trained actor who made the leap to Los Angeles. She got her start playing Daddy Warbucks in her grade school play (it was an all-girls’ school) and fell in love with performing (but not with wearing bald caps). She produced and acted in WMM's first 1/2 hour comedy series, OFF THE GRID. Thanks to an early interest in technology, and parents who didn’t think extracurricular computer classes would be socially impairing, Aubrey began working with various small companies building their online communities. Able to apply her geeky tendencies to her true passion – film (apologies to slow cooked bbq ribs), she is thrilled to be working with her fellow eccentrics at WMM.