The following form is to be completed by employers who contribute to the Equity-League Benefit Funds on performers’ behalf. If you are a League of Resident Theatres (LORT) employer, please go to the page for LORT-specific form.
During the Covid-19 driven industry shutdown, the Trustees and Fund Office have been working to prepare for the glorious day when we will see a widespread return to normal in our industry. In that connection, we want to announce some major changes that are taking place at the Equity-League Funds.
The first change has occurred at the Fund Office, where we have moved and downsized our office such that it will only have space to serve plan participants with benefits questions live. All other Fund Office operations - including Accounts Receivable (where you had been sending Remittance Reports and Contributions) will be virtual. Some of you were still sending checks and paper reports when the pandemic led to the industry shut down. Many others were sending us electronic reports and payments at that time. However, since we no longer have a physical office for Accounts Receivable, we are moving to a system of electronic only reporting and payments. This applies to Health, Pension and 401(K) contributions. Therefore, we are no longer able to receive checks or remittance reports at our former location on the 14th floor of 165 W 46th Street. Any checks or reports sent there will be returned, and may not actually be received at all, since that office is not currently occupied by anyone. So please do not send anything to our old address. Instead, we encourage you to submit your remittance reports and payments electronically. But for those who are unable to do that at this time, we have opened a lockbox to receive interim reports and payments via check. The details regarding electronic payments and reports, and the lockbox, are explained here.
The second major change is that a special and temporary Health Fund program will permit employees to become eligible for health coverage on an accelerated basis when they return to work and and their employers make a special additional contribution to the Health Fund. A link to an explanation of that coverage is available here.
Once you've read the attached materials, please don't hesitate to contact the Fund Office in connection with any of the above changes. You can call us at 212.869.9380. Or you can e-mail Accounts Receivable at AccountsReceivable@equityleague.org, (regarding changes in the contribution process) or, the Health Insurance area at Health@equityleague.org (regarding the new early coverage option).
Refer to the instructions below for submitting employer contributions and employee (salary deferral) contributions to the Equity-League Benefit Funds 401(k) Fund.
Employer Contributions. Employers that agree to an employer contribution must contribute an amount equal to 3% of the participant’s weekly compensation, up to a maximum contribution per participant of $225 per week (the maximum weekly compensation of $7,500 times the employer contribution of 3%).
Compensation includes contractual salary, overtime, unused vacation, unused sick leave, and overscale expenses and per diems. Vacation pay must be reported for any pay period in which the actor was on vacation. Unused vacation pay may be reported on the week ending report that corresponds to the date the payment was issued.
The federal government limits the annual amount of compensation per employer that may be considered for determining contributions for a participant. For 2019, the annual amount is $280,000. Therefore, the maximum employer contribution for a participant for 2019 is $8,400 (3% times $280,000).
Employers that have allocated tax relief for pension purposes and have accumulated tax relief in excess of the obligations to the Pension Fund may allocate from such surplus. The amount which may be allocated is equal to 2% of each actor’s salary (with a maximum salary $7,500) and must pay a direct contribution of 1% of the salary to the 401(k) Fund. An employer in the process of accumulating tax relief must continue to make contributions of 3% until sufficient funds are accumulated to cover the 2% contribution on salary. Equity-League Benefit Funds will notify employers of any refunds that are due after enough tax relief has accumulated to cover the 2% contribution.
Employee (deferral) contributions: In addition, participants may choose to defer a minimum of 1% of their pre-tax weekly compensation up to a weekly maximum of $7,500.
Please note that although a 3% employer contribution is due on all overscale per diem, participants may not defer overscale per diem towards the 401(k) Plan unless the overscale per diem is taxable. The participant may change salary deferral contributions at any time, or choose not to defer any part of their salary.
The federal government limits the maximum amount of salary that can be deferred to retirement plans. For 2019, the maximum amount of salary that participants can defer for all employers is $19,000. Participants who are 50 or older are eligible to defer an additional $6,000 for 2019. The $7,500 maximum weekly compensation limit does not apply for such additional deferrals.
Actors who are incorporated (employed through corporations) are eligible for employer contributions; however, they are not eligible for salary deferrals.
401(k) employee-only (deferral) contributions (with no employer contributions): Participants who are covered by a 401(k) agreement that allows for only employee contributions through salary deferral may choose to contribute to the 401(k) plan. The same requirements apply to the deferral contributions section as outlined above.
The Equity-League Benefit Funds Accounts Receivable Department will track the employer and/or deferral contributions made on behalf of participants and notify you if and/or when the annual contribution limits are reached.
In addition to the required information outlined in item No. 4 of the instructions for reporting pension and health contributions, as well the items listed above, the percentage being deferred by the participant, and the contribution amount deferred by the participant, should be included on the contribution report.
Participants may use the Deferred Salary Agreement forms to defer pre-tax compensation as outlined above. The participant and the employer must retain copies of this form after it is completed and signed. A third copy of the Deferred Salary Agreement must be filed with the Equity-League Benefit Funds Office. You may download and print Deferred Salary Agreement forms from our website. Or, you may contact the Equity-League Benefit Funds office to request additional deferral forms.
If you have any questions, please contact the Equity-League Benefit Funds Accounts Receivable Department at (212) 869-9380 (New York City) or toll free outside of NYC (800) 344-5220
You’ll need the free Acrobat Reader to view these forms.