Work Week
Terms of contracts and work hours/weeks and rates are constantly changing from production to production, studio to studio but the following are the most common...
As a Crew Member, whether a Runner or Cameraman, the most common hours of work in NZ are either 10.25 or 11.25 hours per day with a .45 minute break. This equates to a 51.25 or 56.25 hour work week and will usually be either Monday to Sunday or Sunday to Saturday. (Obviously depending on size and scope of film)
In some rare instances, a pay week might be Monday to Sunday but the Per Diems might be calculated from Sunday to Saturday.
As a Crew Member, whether a Runner or Cameraman, the most common hours of work in NZ are either 10.25 or 11.25 hours per day with a .45 minute break. This equates to a 51.25 or 56.25 hour work week and will usually be either Monday to Sunday or Sunday to Saturday. (Obviously depending on size and scope of film)
In some rare instances, a pay week might be Monday to Sunday but the Per Diems might be calculated from Sunday to Saturday.
Contract Variations
Aspects of contracts that may vary from contractor to contractor and production to production:
NOTE: There are different rules for resident and non-resident contractors around taxation on allowances
- Accommodation allowance
- Box or Equipment rental
- Car and/or Trailer allowance
- Mileage allowance (RUC or Road User Charge)
- Mobile phone reimbursement
- Per Diems
- Penal rates
NOTE: There are different rules for resident and non-resident contractors around taxation on allowances
Allowances Explained
Accommodation.
If a contractor is living away from their home town, they may be entitled to fully self-contained accommodation or, in rare instances, receive an accommodation allowance so they can source their own. Depending on their role, this can be anywhere from $400 to $700 a week.
"If you receive an accommodation allowance this is treated as part of your gross income and is generally subject to withholding tax. If you are required to file an income tax return, you need to include the allowance as part of your income on the return.
However, you can claim tax deductions for such work-related expenses against your end-of-year tax. These are called allowable deductions. You'll need to keep all your invoices and receipts for accommodation expenses to support any deductions you claim against your end-of-year tax". Source: IRD
Box or Equipment Rental
Due to the short term nature of film productions, it's not viable for the company to spend thousands on equipment that they then have to depreciate and sell off at a fraction of the cost so they pay contractors to use their own. This allowance is called a Box Rental and may cover anything from computers to tools for their roles. It's called a rental because essentially the company is renting this equipment off the contractor but it also covers any actual rentals or purchases the contractor might have to make to do their job effectively.
Like accommodation, the rates vary. The most common rate for the use of computers is $50 a week and capped at $500.
In the case of specialist equipment, like sound recordists for instance, they may get up to $2500 a week but these rates are all negotiated prior to a contract being signed.
All rentals are paid on a daily basis so it won't be paid for days not worked and no payments will be made for sixth or seventh day worked.
The most common question with box/equipment rental is Are they taxed?
IRD effectively states that whether it's taxed on the contractors weekly pay or at the end of the year, it's classed as income and tax has to be paid. Generally they're taxed weekly unless the contractor asks specifically not to be.
NOTE: Even though the contractor will be required to give an inventory list with replacement values of anything they're being paid a box rental for, the payment is also toward the contractor arranging their own insurance.
Car and/or Trailer
If a vehicle and/or trailer is required and the production company don't provide a rental, the contractor will use their own and get an allowance to cover expenses. Again, the rates vary from $250 to $350 per week. Location vehicles can vary between $70 to $300 a day, depending on the role and vehicle. Often a production company will base it's allowance rates on comparable rental costs.
There can be different arrangements around fuel from not getting any reimbursement to having a fuel card provided.
There are usually no payments for sixth or seventh days for vehicles.
Mileage/RUC
If the vehicle is a diesel, often RUC (Road User Charge) is reimbursed at .6c per km (not taxed).
Each company will have it's preferred method of supporting documentation to show the mileage. Some want to see a daily mileage total on the timesheet/invoice, others will reimburse a RUC payment receipt as long as it's within the contracts date range and terms.
Mobile Phones
If having a mobile phone is essential to the contractors role, production will provide one. If they don't or if the contractor would prefer to retain their own phone, the company may agree to a daily/weekly allowance or to reimburse their monthly charge or at least, work related calls, on presentation of a 'marked up invoice'.
Per Diems
When contractors are living away from their home, they'll usually be paid a per diem allowance (literally 'per day') for meals and other minor living expenses. Although any amount can be paid, anything over $60 per day will be taxed so $60 is the most common amount paid out to avoid taxation. Depending on the contractors role or the availability of the accounts person who disperses the funds, they can be paid in cash from the Production Office, on set or into the contractors bank account with their pay. Each production will determine which way they want to pay.
Most productions have Craft Services (catering) and the crew are fed a prepared breakfast and lunch. The IRD ruling is that this should reduce the contractors daily per diem due to not having to pay for it themselves. In this instance, the per diem can be reduced to $35 per day but many productions continue to pay the full rate.
NOTE: Non-residents are always paid in cash due to not having a NZ bank account.
"The determination allows that from 1 July 2003, people working in the screen production industry are able to receive up to NZ$60 per day in per diem allowances without having withholding tax deducted. If you receive $60 or less in per diems a day, you won't need to keep your invoices and receipts for income tax purposes." Source: IRD
All allowances have GST added to them.
A general rule for witholding tax is that if the allowance being paid is something that you can claim expenses against, you'll be taxed.
If a contractor is living away from their home town, they may be entitled to fully self-contained accommodation or, in rare instances, receive an accommodation allowance so they can source their own. Depending on their role, this can be anywhere from $400 to $700 a week.
"If you receive an accommodation allowance this is treated as part of your gross income and is generally subject to withholding tax. If you are required to file an income tax return, you need to include the allowance as part of your income on the return.
However, you can claim tax deductions for such work-related expenses against your end-of-year tax. These are called allowable deductions. You'll need to keep all your invoices and receipts for accommodation expenses to support any deductions you claim against your end-of-year tax". Source: IRD
Box or Equipment Rental
Due to the short term nature of film productions, it's not viable for the company to spend thousands on equipment that they then have to depreciate and sell off at a fraction of the cost so they pay contractors to use their own. This allowance is called a Box Rental and may cover anything from computers to tools for their roles. It's called a rental because essentially the company is renting this equipment off the contractor but it also covers any actual rentals or purchases the contractor might have to make to do their job effectively.
Like accommodation, the rates vary. The most common rate for the use of computers is $50 a week and capped at $500.
In the case of specialist equipment, like sound recordists for instance, they may get up to $2500 a week but these rates are all negotiated prior to a contract being signed.
All rentals are paid on a daily basis so it won't be paid for days not worked and no payments will be made for sixth or seventh day worked.
The most common question with box/equipment rental is Are they taxed?
IRD effectively states that whether it's taxed on the contractors weekly pay or at the end of the year, it's classed as income and tax has to be paid. Generally they're taxed weekly unless the contractor asks specifically not to be.
NOTE: Even though the contractor will be required to give an inventory list with replacement values of anything they're being paid a box rental for, the payment is also toward the contractor arranging their own insurance.
Car and/or Trailer
If a vehicle and/or trailer is required and the production company don't provide a rental, the contractor will use their own and get an allowance to cover expenses. Again, the rates vary from $250 to $350 per week. Location vehicles can vary between $70 to $300 a day, depending on the role and vehicle. Often a production company will base it's allowance rates on comparable rental costs.
There can be different arrangements around fuel from not getting any reimbursement to having a fuel card provided.
There are usually no payments for sixth or seventh days for vehicles.
Mileage/RUC
If the vehicle is a diesel, often RUC (Road User Charge) is reimbursed at .6c per km (not taxed).
Each company will have it's preferred method of supporting documentation to show the mileage. Some want to see a daily mileage total on the timesheet/invoice, others will reimburse a RUC payment receipt as long as it's within the contracts date range and terms.
Mobile Phones
If having a mobile phone is essential to the contractors role, production will provide one. If they don't or if the contractor would prefer to retain their own phone, the company may agree to a daily/weekly allowance or to reimburse their monthly charge or at least, work related calls, on presentation of a 'marked up invoice'.
Per Diems
When contractors are living away from their home, they'll usually be paid a per diem allowance (literally 'per day') for meals and other minor living expenses. Although any amount can be paid, anything over $60 per day will be taxed so $60 is the most common amount paid out to avoid taxation. Depending on the contractors role or the availability of the accounts person who disperses the funds, they can be paid in cash from the Production Office, on set or into the contractors bank account with their pay. Each production will determine which way they want to pay.
Most productions have Craft Services (catering) and the crew are fed a prepared breakfast and lunch. The IRD ruling is that this should reduce the contractors daily per diem due to not having to pay for it themselves. In this instance, the per diem can be reduced to $35 per day but many productions continue to pay the full rate.
NOTE: Non-residents are always paid in cash due to not having a NZ bank account.
"The determination allows that from 1 July 2003, people working in the screen production industry are able to receive up to NZ$60 per day in per diem allowances without having withholding tax deducted. If you receive $60 or less in per diems a day, you won't need to keep your invoices and receipts for income tax purposes." Source: IRD
All allowances have GST added to them.
A general rule for witholding tax is that if the allowance being paid is something that you can claim expenses against, you'll be taxed.
Penal Rates
Absolutely all overtime has to be approved by Production Manager and/or UPM first.
Monday to Friday
Penal or overtime rates are usually the first two hours at T1.5 and any after that at T2 for an 11 hour contract.
For a 12 hour contract, the first hour will be at T1.5 then T2 for the remainder.
Sixth Day
Usually a Saturday but not always. On large productions, sometimes there are art department/construction swing crews etc who have to work night shift and/or start their work week on a Tuesday or even a Friday. Sixth day is exactly that - the sixth consecutive day of work. The penal rates can vary from the first two hours being at T1.5 then T2 for the remainder or sometimes, the whole day being T1.5. Minimum 4 hour call.
Seventh Day
Very unlikely but usually T2 and a minimum 4 hour call.
Public Holidays
Christmas Day, New Years Day, Waitangi Day, Easter Friday, Easter Monday, Labour Day.
The days and arrangements will vary but one thing is constant, any public holiday taken off is unpaid. When contracts state that the work week is any consecutive 5 days, if the crew and cast are given a Monday off, they will usually work a Saturday to make up that week and this will usually be at normal rates but sometimes a production company will generously pay penal rates.
If they're asked to work on public holidays, usually they will be paid double time.
Out of town Travel Days
No matter whether travel is in the week or on a sixth or seventh day, it will always be paid either at normal rates or 60% of daily rate and that travel will be organised by the Production Department, unless otherwise arranged.
Local Travel
Often there is a distance between the Production Base and the location of filming. Travel time is paid if location is 25kms or more from Production Base (or any other range agreed upon) at standard rate and in 15 minute increments up to call time and after wrap time.
Drivers who pick up cast or crew will have a start and finish time of their first pick up and last drop off, unless being wrapped from base.
Turnaround
Each contractor is expected to have a break of 10 hours between end of work and start of next day.
When working 5 days, there should be a minimum of 58 hours before start of work.
When working 6 days, there should be a break of 34 hours.
If someone was to only have a 9 hour break, this is classed as 'breaking turn around' and penal rates apply.
For each hour they work, they're paid one hour at T1 (this rate can vary).
Monday to Friday
Penal or overtime rates are usually the first two hours at T1.5 and any after that at T2 for an 11 hour contract.
For a 12 hour contract, the first hour will be at T1.5 then T2 for the remainder.
Sixth Day
Usually a Saturday but not always. On large productions, sometimes there are art department/construction swing crews etc who have to work night shift and/or start their work week on a Tuesday or even a Friday. Sixth day is exactly that - the sixth consecutive day of work. The penal rates can vary from the first two hours being at T1.5 then T2 for the remainder or sometimes, the whole day being T1.5. Minimum 4 hour call.
Seventh Day
Very unlikely but usually T2 and a minimum 4 hour call.
Public Holidays
Christmas Day, New Years Day, Waitangi Day, Easter Friday, Easter Monday, Labour Day.
The days and arrangements will vary but one thing is constant, any public holiday taken off is unpaid. When contracts state that the work week is any consecutive 5 days, if the crew and cast are given a Monday off, they will usually work a Saturday to make up that week and this will usually be at normal rates but sometimes a production company will generously pay penal rates.
If they're asked to work on public holidays, usually they will be paid double time.
Out of town Travel Days
No matter whether travel is in the week or on a sixth or seventh day, it will always be paid either at normal rates or 60% of daily rate and that travel will be organised by the Production Department, unless otherwise arranged.
Local Travel
Often there is a distance between the Production Base and the location of filming. Travel time is paid if location is 25kms or more from Production Base (or any other range agreed upon) at standard rate and in 15 minute increments up to call time and after wrap time.
Drivers who pick up cast or crew will have a start and finish time of their first pick up and last drop off, unless being wrapped from base.
Turnaround
Each contractor is expected to have a break of 10 hours between end of work and start of next day.
When working 5 days, there should be a minimum of 58 hours before start of work.
When working 6 days, there should be a break of 34 hours.
If someone was to only have a 9 hour break, this is classed as 'breaking turn around' and penal rates apply.
For each hour they work, they're paid one hour at T1 (this rate can vary).
Hiatus and Termination
Hiatus
If the Producer calls a hiatus and the contractor is still needed, no fees will be paid during this hiatus. This is common for long term productions who schedule breaks, also for public holidays.
Termination
As independent contractors, the company isn't bound by any employee/employer obligations therefore can give one days notice of termination but this also works the other way and the contractor can give a days notice of cessation.
In the instance of gross breach of contract terms, instant termination is to be expected.
If the Producer calls a hiatus and the contractor is still needed, no fees will be paid during this hiatus. This is common for long term productions who schedule breaks, also for public holidays.
Termination
As independent contractors, the company isn't bound by any employee/employer obligations therefore can give one days notice of termination but this also works the other way and the contractor can give a days notice of cessation.
In the instance of gross breach of contract terms, instant termination is to be expected.