Focus on the IATSE National Benefit Funds’ One-Year Rule

In entertainment payroll, processing benefit contributions correctly is a critical part of staying compliant — and staying within budget. But mistakes happen. An employee might be misclassified as union, the wrong local code might be used, or you might discover you paid benefits on a week the employee didn’t work.



When that happens, payroll teams often move to correct the error. But if too much time has passed, there’s a hard truth that catches even experienced accountants off guard:

You might not be able to get the money back.

This is the reality of time-barred refunds. And nowhere is it more relevant than when dealing with the IATSE National Benefit Funds (NBF), where the deadline to request a refund is just 12 months from the work date.

What Is a Time-Barred Refund?

A time-barred refund refers to a benefit overpayment that is no longer eligible for return because the request was submitted after the fund’s deadline. Even if the contribution was clearly made in error — such as for a non-covered individual or an incorrect job classification — the fund is not obligated to issue a refund once that window closes.

This rule isn’t just policy; it’s a fiduciary obligation of the benefit fund to maintain strict oversight over contributions and disbursements. Once the time bar passes, the overpayment becomes a non-recoverable cost to production.

The IATSE National Benefit Funds Refund Deadline

The IATSE National Benefit Funds enforces a strict 12-month limit on refund requests.

Deadline: Refund requests must be received within one year (12 months) from the original date of contribution.

This applies to all employer over-contributions to the National Health & Welfare Fund, Pension Fund, and Annuity Fund. If the contribution was for work performed in March 2024, the request must be received by March 2025.

There are no exceptions based on the discovery of the error or production wrap timing. The countdown starts the day the work is performed, not the day the payroll was issued or the error was identified.

What Happens If You Miss the Deadline?

If the refund request comes in after the 12-month period, the contribution is permanently non-refundable — even if:

• The employee was not union
• The local or job classification was wrong
• The employee never worked during that week
• The contribution was a clear clerical or system error

Once time-barred, the money remains with the fund, and cannot be recovered, credited, or applied elsewhere. This includes:

• No credits toward future payrolls or contributions
• No account balance adjustments
• No retroactive corrections through reporting

The only exception is in rare cases where the contribution violates IRS statutory caps (e.g., excessive pension or annuity contributions beyond legal limits), and even those may require plan-specific administrative review.

How Refunds Work Within the Time Limit

If you catch the over-contribution before 12 months, NBF will generally process the refund request, provided it meets eligibility and documentation standards.

Key Procedures:

• The request must be made in writing
• Use the official Refund Request Form available through the IATSE NBF employer portal
• Include documentation such as:
• Payroll reports
• Start paperwork or union status confirmation
• Explanation of the error

Refunds Are Issued by Check

Contrary to outdated assumptions, the NBF does issue refunds via paper check once the request is approved. If your show has wrapped, you’ll still receive the refund as long as the request is on time and adequately documented.

Refunds Are Also Subject to Other Conditions

Even when submitted within the 12-month window, not all over-contributions are refundable. The NBF has several policies that can affect whether and how a refund is processed:

• Minimum Refund Amount: Refunds must be at least $100 to be considered.
• Administrative Fee: A 5% processing fee is charged on approved refunds, with a minimum fee of $100.
• Exemptions from the Fee: Refunds made before contributions were processed or refunds for employees never employed may be exempt from the fee.

These policies were updated in 2016 and continue to apply to current refund processes.

What Time-Barred Refunds Mean for Payroll Adjustments

One of the most significant issues with time-barred refunds is their impact on payroll reconciliations and final cost reporting. If a benefit contribution is found to be in error after the 12-month mark:

• The contribution becomes a permanent cost to the production.
• The production accountant cannot recover or reallocate that money.
• The payroll service cannot offset or apply the credit to another production.
• The general ledger may reflect an adjustment internally, but the cash is gone.

This also affects how you report production costs to financiers, studios, or tax credit auditors—because your benefit expense will be overstated with no method to correct it.

Best Practices to Avoid Time-Barred Situations

To prevent unrecoverable costs due to expired refund windows, production accountants and payroll teams should build benefit contribution reviews into their regular workflow.

1. Track Contribution Dates, Not Payroll Dates

The 12-month limit starts when the work is performed, not when the check date hits. Use the NBF employer portal or benefit reporting from your payroll service to work and contribution submission dates.

2. Audit Weekly and Monthly

Don’t wait until post or wrap. Review your union roster, occupation codes, and benefit fringe reports every week. Build in a monthly reconciliation to catch misclassified or duplicate contributions.

3. Keep Clear Documentation

Maintain all union status records, start paperwork, and timecard notes for at least two years. If you need to prove someone was ineligible or misclassified, this documentation is your best support.

4. Submit Refund Requests as Soon as Errors Are Found

Do not wait until you’re wrapping a show to submit refund requests. If you find a mistake, submit the documentation immediately, even if you're still investigating the full scope of the issue.

5. Confirm Refund Submission

Always follow up with the IATSE NBF to confirm your refund request was received, processed, and approved within the deadline. Keep copies of all communications.

Bottom Line

Time-barred refunds are one of the most overlooked compliance risks in union payroll. For the IATSE National Benefit Funds, the 12-month deadline is hard and final—no extensions, no appeals. If you don’t catch the error in time, your only option is to eat the cost. For productions running on tight budgets and thin margins, that can be a costly mistake.

The good news? With the right payroll processes in place—and by treating benefit remittance like a live part of production accounting, not just a backend task—you can stay ahead of the deadline and keep your payroll clean.

The key takeaway: Audit early. Act fast. Document everything.