Sole Proprietors and Partnership Improper Reporting of Contribution for Owners

The purpose of this webpage is to advise all Signatory Producers regarding the SAG-AFTRA Health Plan’s policies and procedures concerning earnings and contributions reported from a sole proprietor or partner on their own behalf. SAG-AFTRA Signatories are sometimes organized as a sole proprietorship or partnership (rather than as corporations or Limited Liability Corporations, or "LLCs"), and they can sign to various types of the SAG-AFTRA Collective Bargaining Agreements. While the Plan’s current policies do allow for earnings and contributions reporting for performers who worked on a SAG-AFTRA project for a sole proprietorship or partnership, federal law does not permit the Plan to accept earnings and contributions reporting from these sole proprietors or partners on their own behalf.

When the Plan becomes aware that an owner of a sole proprietorship or partnership is improperly reporting on their own compensation, the earnings will not be processed and the contributions will be returned to the reporting entity. The owner will not be able to rely on these earnings for purposes of establishing eligibility or obtaining benefits under the rules of the Plan. If the earnings have already been processed, the earnings will be removed and the contributions will be refunded once they are identified. If the improper contributions establish eligibility, the Plan will remove the eligibility and recoup any claims improperly paid.

Should you have any questions, please contact the Contribution Management Department at (818) 973-4472 or at [email protected].