What are Fringes?
In the world of film production budgeting, fringes refer to additional costs or benefits added to employee wages. This can include common overheads like taxes and insurance, often termed as "non-union fringes." On the other hand, union fringes pertain to additional costs and benefits associated with union work, like union pensions and health benefits. Essentially, fringes help in ensuring that you account for all the expenses associated with hiring a crew member beyond just their base pay.
Creating a Fringe
Within your project, click on the "Fringes" button to access the Fringes modal.
Click the purple "+" icon to add a new fringe.
Fill out the columns for the fringe:
Name: Add a shorthand or abbreviation for the fringe. Example: "FICA"
Description: Provide a detailed descriptor of what the fringe covers.
Rate: Define how much the fringe costs.
Unit: Specify if the fringe value is a percentage (%) or a flat figure ($/€/£ etc.).
Cut Off: Indicate the maximum value where the fringe calculation stops. Some fringes might only apply up to a certain amount per annum.
Color: Choose a color for easy identification of your fringe within the budget.
Adding Fringes to your Budget
Within your budget, navigate to the Fringes column for the line item or account you want to add the fringe to.
Start typing the fringe name (e.g., "DGA"). A dropdown will appear, showing available fringes. Select the desired fringe to add it to that line item. Remember, multiple fringes can be selected for a single line.
All selected fringes get summed up at the bottom of the table, providing a clear view of the total fringe costs.
Note: Fringes can be applied at the line item, subaccount or top sheet account level. The sum of all fringes are shown in its respective level. For example, if the fringes are applied to a subaccount, the total fringes sum is shown on the subaccount level and not on the top sheet.
You can choose how you want fringes to be displayed on your budget - either the fringe label or amount. These options are accessible in the Fringes column header settings.
When to Use Fringes in Saturation
Fringes become invaluable especially when:
Processing payroll.
Handling taxes and VAT.
Working with unions and accounting for their associated costs.
By efficiently managing and applying fringes, users can ensure that their budget is comprehensive, transparent, and in alignment with industry standards.
See it in Action
Check out our YouTube tutorial that walks through creating and adding fringes to your budget.