Providing service and support to film and television musicians.
Your “wage ratio” is determined by comparing the wages paid to you for the original scoring session(s) against the total wages of all musicians who worked on the original score and whose recordings were licensed into the original score (if any). Here is a simplified hypothetical that describes how it works:
Assume nine musicians worked on the original film score:
|1 musician paid $2,000 for session||= $2,000|
|8 musicians paid $1,000 each for session||= $8,000|
|Total wages original session||$10,000|
|1 musician is allocated $20:||$2,000÷$10,000 = 0.2 x $100 = $20|
|8 musicians are allocated $10 each:||$1,000÷$10,000 = 0.1 x $100 = $10|
The “amount contributed” is what the FMSMF received from contributors (studios, distributors, producers) for secondary market exhibition, less 1.5% that we are required to remit to the AFM-Employers Pension Fund, for the title in question during the fiscal year. The amount contributed is based on the requirements of the AFM contract: Essentially, the studio/or distributor/or producer is required to send one percent (1%) of the “distributors gross receipts” from secondary market use to the FMSMF. (This is quite oversimplified, but reflects the general concept). On the annual statement you receive, the “amount contributed” listed for each title reflects the monies paid in to the FMSMF (less 1.5% sent to the AFM Pension Fund) for those titles between April 1 of the prior year through March 31 of the current year.
The wage ratio formula and, with minor exceptions, the amount contributed formula are essentially the same for Theatrical Films produced under the Basic Theatrical Motion Picture Agreement and TV shows produced under the Basic Television Motion Picture Agreement. The statement you receive from the FMSMF includes both Theatrical motion pictures and Television motion pictures (“motion picture” is the formal contractual term to describe what we normally call “films”, “movies” or “TV series”). The formulas under the Television Videotape Agreement – which covers live and “taped” TV shows like talk shows, variety programs and awards shows -- are administered by the Live Video Tape Supplemental Markets “sub-fund” (a/k/a LTVF) and differ.
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.
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.
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
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.
These are the actual costs or expenses of operating the Fund. The percentage for expenses is disclosed in the Executive Director's Annual Distribution Letter each year.
All Fund participants who are beneficiaries and/or ex-spouses of a participant receive 1099s.
While the Fund's website remains secure, in the interest of advancing our present security measures, we have chosen not to post participant tax I.D. information online. We apologize for any inconvenience. If you need a copy of your tax statement (W-2, 1099, and/or T4A, RL-1, etc.), you must fax, mail, or email (as a PDF attachment) a written request with your signature to the Participant Services department at:
Film Musicians Secondary Markets Fund
15910 Ventura Blvd., 9th Floor
Encino, CA 91436.
Be sure to specify in the written request the email address, fax number or mailing address to which you'd like the tax form(s) sent. Please contact the Participant Services hotline at 888-443-6763 should you need further assistance.