Producers working under union agreements in film and television quickly learn that signing on to guild and union contracts brings not just wages and working condition obligations, but also ongoing responsibilities to contribute to benefit funds. Among the most significant are the Motion Picture Industry Pension and Health Plans (MPIPHP), the International Alliance of Theatrical Stage Employees (IATSE) National Benefit Funds (IANBF), and various guild plans operated by the Writers Guild of America (WGA), Directors Guild of America (DGA), and SAG-AFTRA.

Each of these funds has the right to audit signatory producers to verify that contributions are properly calculated, reported, and paid. These audits are not optional, and they typically occur on an annual basis for each signatory producer. For many independent producers, particularly those new to union productions, the audit process can feel daunting. This guide explains what these audits are, why they matter, and how to prepare for them so your production remains in compliance.

What Are Benefit Fund Audits?

A benefit fund audit is a compliance review conducted by the health and pension fund administrators of a union or guild. Its primary purpose is to ensure that the employer, in this case the producer, has correctly calculated and submitted contributions on behalf of covered employees.

The scope of these audits usually includes:

• Wages paid to union employees (to verify subject earnings and contribution rates).
• Fringe benefits reported and remitted (to confirm that the right percentage was paid).
• Timecards and start paperwork (to cross-check work dates, classifications, and pay rates).
• Payroll records (including payroll company reports, general ledgers, and wire confirmations).

Because benefit contributions fund health coverage, retirement plans, and other essential benefits for union members, the funds take these audits very seriously. Discrepancies may result in back payments, penalties, or interest charges.

MPIPHP Audits

The Motion Picture Industry Pension and Health Plans (MPIPHP) cover most IATSE and Basic Crafts employees in Los Angeles and Southern California. Producers who sign the IATSE Basic Agreement or related collective bargaining agreements must remit contributions for eligible employees working in covered classifications.

An MPIPHP audit typically examines a producer’s payroll records for a given time period and compares:

• Reported earnings vs. gross wages on payroll reports.
• The correct application of fringe rates for health, pension, and individual account plans.
• Whether employees were properly classified under the agreement.

MPIPHP is known for conducting regular audits for signatory producers. For producers who have never gone through the process, it is important to know that MPIPHP auditors will request full access to payroll reports, check stubs, and proof of payment. If the fund finds discrepancies such as missed days, underreported wages, or misclassified employees, they may issue a billing for unpaid contributions.

IANBF Audits

The IATSE National Benefit Funds (IANBF) apply primarily to productions shooting outside of Los Angeles and New York City, and to certain categories of IATSE members covered under national agreements. Unlike MPIPHP, which is regionally tied to Hollywood and NYC, IANBF provides coverage across the country and applies rates accordingly.

IANBF audits function similarly to MPIPHP audits. They review payroll, timecards, and contributions to ensure that the proper health and pension payments were made. Like MPIPHP, IANBF generally conducts regular audits. Producers working nationally or across multiple jurisdictions should expect to be audited by both funds if they employ crew covered under each.

Guild Benefit Audits (WGA, DGA, SAG-AFTRA)

In addition to IATSE and Basic Crafts, producers signatory to the WGA, DGA, or SAG-AFTRA are also subject to audits by their respective benefit funds. These include:

• Writers Guild of America Pension and Health Funds
• Directors Guild of America Pension and Health Plans
• SAG-AFTRA Health Plan and Producers Pension Plan

While the process mirrors MPIPHP and IANBF audits, guild fund audits tend to focus on specific contract provisions unique to their crafts:

• WGA audits review residuals, script fees, and applicable pension and health contributions.
• DGA audits focus on director, UPM, and AD wages, residuals, and completion of assignment pay.
• SAG-AFTRA audits scrutinize performer contracts, residuals, and related benefit contributions.

Together, these audits form a web of oversight designed to ensure that all union members receive the benefit coverage to which they are entitled.

Why Do Producers Get Audited?

The straightforward answer is that every signatory producer gets audited, typically once in a given audit period. This is not a punitive process. It is a routine compliance mechanism to protect union benefit plans and their participants.

Audits may also be triggered by:

• Red flags in reporting, such as sudden decreases in contributions or mismatches between payroll and contributions.
• Union grievances or member complaints, where employees allege underpayment of fringes.
• Random sampling by the funds, which can expand into a full audit if issues are discovered.

Preparing for a Benefit Fund Audit

For producers, the best approach is proactive compliance. Proper preparation can make the audit process straightforward and reduce the risk of penalties or costly back payments. Here are key steps:

1. Keep Complete Payroll Records

Maintain organized records for all union employees, including start forms, timecards, and payroll company reports. Make sure you can produce these quickly when requested.

2. Verify Contribution Calculations

Double-check that your payroll company has correctly calculated and submitted fringes to the proper benefit funds. Errors often occur with overtime, allowances, and re-rated occupation codes.

3. Understand Which Fund Applies

Be clear about whether your crew falls under MPIPHP, IANBF, or a guild plan. Productions moving across jurisdictions often need to ensure proper benefit redirection.

4. Reconcile Payroll and Contributions Regularly

Do not wait until the audit to discover discrepancies. Compare payroll registers against benefit contribution reports throughout the year.

5. Prepare for Access Requests

Funds will ask for payroll ledgers, check registers, wire confirmations, and tax filings. Having these documents easily accessible will streamline the audit process.

Common Audit Findings

Even diligent producers can face findings during audits. The most common include:

• Misclassification of employees (for example, incorrectly coding someone as non-union).
• Underreporting overtime or allowances as subject earnings.
• Missing contribution payments due to late payroll submissions.
• Failure to remit residual contributions for WGA, DGA, or SAG-AFTRA contracts.

Being aware of these risks allows producers to take corrective steps in advance.

Why Proactive Compliance Matters

Audits are not just about catching errors. They are about maintaining good standing with unions and their benefit funds. A smooth audit process signals that a producer is compliant, organized, and trustworthy, which is a critical reputation factor in Hollywood and beyond.

On the flip side, repeated audit findings can lead to:

• Costly back payments and interest.
• Potential labor disputes or grievances.
• Difficulty becoming a signatory on future projects.

For producers navigating multiple contracts and funds, working with experienced labor consultants can be invaluable. Consultants can review payroll before the audits occur, help reconcile discrepancies, and prepare responses to audit requests.

Final Thoughts

Benefit fund audits from MPIPHP, IANBF, and the various guild plans are a fact of life for signatory producers. They are not optional, and they will happen, usually on an annual cycle. By understanding what these audits involve and preparing in advance, producers can ensure compliance, avoid costly corrections, and protect their long-term relationships with unions and guilds.

If you are preparing for an upcoming audit, struggling with discrepancies, or want to strengthen your compliance processes, FTV Consulting can help. We specialize in labor consulting for film and television, including benefit fund audit support, payroll review, and union compliance training.

Contact us today to learn how we can guide you through MPIPHP, IANBF, and guild audits with confidence.