Mary Katherine Ham:
Three letters have been giving the payroll-services industry fits for several months now: ACA. That’s the semi-acronym for the Patient Protection and Affordable Care Act, better known as Obamacare, and it’s up to the payroll industry — which cuts checks to production workers and offers related financial services to TV and film studios — to help educate its clients on the rules before a good portion of the law kicks in Jan. 1.
“It’s a morass of regulations and requirements, and everyone’s trying to figure out what their exposure is,” says Eric Belcher, president and CEO of Cast & Crew Entertainment Services. Adds Mark Goldstein, CEO of Entertainment Partners, which has held 16 seminars to help studios understand ACA: “It’s going to be a very big deal.”
Determining the exact nature of the new laws has been difficult, given that many ACA terms have yet to be worked out. Hollywood productions, for instance, might find it irksome simply trying to categorize employees as full- or part-time, seasonal or variable, and it’s important that they get the classifications right lest they face hefty fines. “ACA is thousands of pages, and it wasn’t written with this industry in mind,” says Belcher.
In fairness, who could have possibly guessed that a top-down solution from Washington and thousands of pages of regulations would cause problems for businesses with unorthodox work schedules, scads of part-time, contract, union and non-union employees from different fields, and the need for flexibility?
So, what’s Hollywood doing about this problem? Gamely making sure they help the president live up to every unfounded promise he made, right? No, they’re acting rationally and pondering such strategies as, “running to foreign countries, given that ACA doesn’t apply to U.S. citizens working abroad.”
Trying to figure out if they can wrap productions within 90 days before the Obamacare coverage requirement kicks in:
Some also say the number of production days in the U.S. are likely to be cut due to ACA because there’s a 90-day waiting period before productions must either pay a penalty or offer health insurance to full-time workers. That rule provides big incentives for a production to wrap in less than three months.
And, wondering if they can minimize their overhead by employing as few full-time workers as possible:
