The Producer’s Guide to Union Talent for Commercials: Calculating Hours Worked, Rules, & Costs

Summary:

1. Talent category drives cost: Rates vary based on whether the performer is a principal, extra, voiceover artist, or stunt performer. Script breakdowns help determine categories early.

2. Know your work rules: Understand standard workday lengths, required meal breaks, overtime rates, and night premiums to avoid penalties and unexpected overages.

3. Travel time is work time: Travel outside the studio zone during shoot days counts as work time. Non-shoot day travel often requires a full session fee, and background actors have specific mileage rules.

4. Add-ons: exclusivity, holding fees and hazard pay: Extra costs like holding fees, exclusivity clauses, hazard pay, and wardrobe maintenance can significantly increase performer compensation.

5. Fringes and taxes: Beyond wages, you must account for agency fees, SAG-AFTRA pension & health contributions (currently 20.5%), payroll taxes, workers’ comp, and potential residuals.

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Having a hard time estimating costs when onboarding union talent for your commercial productions? When it comes to calculating costs of hiring a union performer for your upcoming union project, it requires understanding the nuanced web of talent types, accurately navigating SAG-AFTRA contract rules and accounting for any miscellaneous fees that may apply to your campaign. If you’re still using guesswork, you might be miscalculating total costs that can lead your production to run over budget. 

Ensuring you understand how to estimate talent costs in commercial productions can avoid going over budget and ensure a smooth production. In this blog, we’ll cover key factors that producers should keep in mind when calculating talent costs specifically for commercial productions.

Key Factors in Calculating Talent Costs

Calculating talent costs goes beyond simply tracking when talent clocks in and out—especially under SAG-AFTRA’s commercial contract. A range of contract terms can significantly influence performers' overall compensation—including the talent category, work hour regulations, and any special shooting conditions that may trigger additional fees. Below, we break down the key factors to keep in mind when calculating total costs worked during shooting for union talent.

Understanding Union Terms and Regulations to Calculate Talent Costs

Specific union terms and regulations can significantly impact talent costs. Below, we’ll break down the key factors you need to know when estimating talent costs on a union commercial production.

1. Talent Category

   Session costs will vary based on talent category. Within commercials there are the following categories:

   • Principal

   • Extra

   • Voiceovers

   • Stunts

   Pro Tip: Reading your script can help identify what category your talent will fit in.

2. Workday Length

   Standard rates are 8-hour shifts, overtime applies after performers work 9 hours.

3. Meal Breaks

   Meal breaks are not included in total work time. A 30-minute meal break is required every 6 hours, and failing to provide one can result in escalating penalties for every additional 30-minute delay beyond that threshold.

4. Overtime

   Overtime begins after performers have worked 9 hour shifts. Hours 9 and 10 are paid at time and a half and hours beyond 10 are paid at double time.

5. Additional Costs

• Multiple Spots: Talent are paid session and usage fees per spot, even if filmed on the same day.

• Travel: SAG-AFTRA has specific rules regarding travel time that can impact your budget. On shoot days, travel outside the studio zone is considered work time and must be paid accordingly. If talent is required to travel on a non-shoot day (such as the day before a booking), they’re typically owed a full session fee. Additionally, background actors receive a flat mileage fee when traveling within the studio zone and a mileage rate for travel beyond it. Because travel rules can be complex, it's important to review the applicable contract terms to ensure full compliance.

• Hazard Pay: This includes the environment performers are in during shoot such as being in water, surrounded by smoke, dust and other specific environments that can lead to hazard pay. 

• Wardrobe: Performer fittings or if the performer brings their own wardrobe - union will require this to be tracked and properly paid maintenance - even if they don’t wear the outfit. 

• Nightwork: Principals working between 8pm and 6pm are paid 10% premium and extras working between 8pm and 1am are paid 10% premium, and from 1am and 6am they are paid 20% premium.

• Weekend and Holidays: Any hours worked on weekends and holidays are paid double time.

Further Costs to Calculate for Union Talent for Commercials

Beyond union guidelines for calculating performers’ costs while shooting, there are additional costs to account for when hiring union talent. These may include:

1. Payment for exclusivity

   Contract engagement includes one category of exclusivity clause so the performer can be exclusive to your commercial products or service that includes added fees.  If you want exclusivity across additional categories, talent will need to be paid more than scale.

2. Holding fees

   Holding fees are paid to the principal performer every 13 weeks to hold the performer exclusive to the product and to continue to hold the rights to commercial to extend usage cycles. 

   Pro Tip: If holding fees are not paid in time, there are no late fees but the talent is released from exclusivity and are released to work for competitors.

3. Agency fees

   Agency fees are taxable wages and subject to P&H.

4. SAG-AFTRA P&H

   Pension and health contributions for talent are currently 20.5% on top of all wages.

5. Payroll taxes

   Federal and state regulated taxes every payroll service will provide at the time of sending an estimate and is the percentage of the talent's total wages.

6. Worker’s comp insurance

   Every payroll service must include worker’s comp. insurance.

7. Residuals

   Residuals are fees compensated to the performer for the use of the commercial on different platforms.beyond the use covered by initial compensation. Residuals are calculated based on the following factors:

   • When and how often it airs

   • What platforms it will air

   • The talent’s role in the production

Conclusion: Accurately Estimate Union Talent Costs for Commercial Success

From session fees and overtime to travel, night premiums, and holding fees, every detail adds up—and overlooking even one element can lead to costly surprises. As a producer, taking the time to learn these regulations isn’t just about compliance; it’s about protecting your production from delays and overages. With the right knowledge, you can ensure your commercial runs smoothly, stays within budget, and remains compliant to union standards every step of the way.

Need help calculating estimates?

CMS Productions is a third-party union signatory to the SAG-AFTRA Commercials, Corporate, Educational / Industrial & Interactive Media contracts with an expert team on those contracts to properly estimate and budget hiring union performers for your upcoming commercial. 

CMS Productions is happy to assist you hire the best union performers for your next commercial project. Contact us today to set up a consultation.