Deferred Salary Agreement
What employers need to know
Some Actors’ Equity contracts require you to make 401(k) contributions for actors and stage managers working in covered employment or allow 401(k) salary deferrals for those actors and stage managers. For a list of those contracts, view the 401(k) Overview page.
In your weekly contribution reports, you are required to list both the percentage and contribution amount deferred by each participant.
Actors and stage managers working under a contract that allows them to defer income to their 401(k) will need to complete a 401(k) Deferral Form, if they choose to defer income to their accounts. The form must be signed by the actor or stage manager and the employer. Each of you retains a copy of the form, and a third copy must be sent to Equity-League.
Calculating the elective deferral contribution
Elective deferral contributions are based on weekly contractual salary and not on contractual minimums. The maximum weekly compensation that counts toward salary deferrals is $7,500. If weekly salary is above $7,500, the salary above $7,500 may not be deferred, regardless of how much higher the weekly salary is. For example, if someone elects to defer 1%, and the weekly salary is $9,000, the weekly deferral will be $75 (1% of $7,500). For any contract where the weekly compensation limit is less than $7,500, then salary deferrals are only permitted up to that amount.
Example: A Stage Manager’s weekly contractual salary amount under a category B+ agreement in Repertory is $1,600. The category minimum salary is $1,521. The member elected to defer 10% of salary. Therefore, the employer is required to defray $160 as the member’s deferral contribution ($1,600 x 10%).