Musician Resources Statement FAQs

Our participants call our new hotline number ( 818-623-4300 ) with lots of questions. The most common questions are regarding the statements. The list below displays some of the most frequently asked questions regarding the statements. If the information below does not answer your particular question or concern please contact the Participant Services Hotline at (818)-623-4300 or email: participantservices@fmsmf.org  

Participant’s Statements FAQ

Q. Why are there Employer Taxes Withheld from Participants checks?

With respect to the annual distribution, the FMSMF is acting as an agent of the Employer (the Producers) for tax purposes.  This is mandated in the Collective Bargaining Agreement (CBA), the negotiated contract between the American Federation of Musicians (AFM) and the Alliance of Motion Picture and Television Producers (AMPTP).  What this means is that included in the contributions from the Producers is their share of the various employer withholding taxes (Federal withholding, Social Security, etc.), which the Fund is required to pay on their behalf. Inasmuch as the payments from the Fund are considered under both Federal and State law, as wages, Employers (or in this case their agent -- the FMSMF) must make these payments, which pursuant to the CBA are deemed to be included in the Producer's Gross, i.e. the amount that is reported and paid to the Fund during the Fiscal Year.

Q. What are the Employer Taxes comprised of?

In general the Employer Taxes are comprised of Social Security, Medicare Taxes, and Federal Unemployment Tax, for some will also include - State Unemployment Tax (CA or New York) with wage limits as determined by IRS law.

Q. How are the percentages withheld determined?

They are based on Rates and or Tax Tables per Federal (IRS Pub. 15), State of California (DE-44) or New York (NYS-50) Withholding Tax publications

Q. Why is FICA (Social Security) withheld if I'm over 65?

As per the SSA: An employee (in this case Participants) never stops paying Social Security and Medicare taxes on work, self-employment earnings or deferred compensation earnings, regardless of their age or whether they are receiving benefits.  As their employer (in this case the FMSMF), we continue to be responsible for the matching portion of Social Security and Medicare taxes.

Q. What are Administrative Expenses?

These are the actual costs or expenses of operating the Fund. The percentage for expenses is disclosed in the annual Administrator’s letter each year.

Q. Why do I receive a 1099 instead of a W2 at year end?

All Fund participants who are beneficiaries receive 1099’s.