**Sponsored Content**
Managing compliance in a studio environment can be overwhelming. From ensuring workplace safety to adhering to labor laws, staying compliant with various regulations is both crucial and complex.
Partnering with a Professional Employer Organization (PEO) can alleviate much of this burden by offering expert guidance and support in compliance and risk management. Here’s how a PEO can be your trusted compliance partner, especially in the context of being an employer of choice in the entertainment industry.
Why Partner with a PEO?
A PEO provides comprehensive administrative support through a co-employment model. This means that while the PEO handles employee-related administrative tasks, you retain control over your daily operations. PEOs specialize in areas crucial to compliance and risk management:
- Payroll and Benefits: Ensuring accurate payroll and comprehensive employee benefits.
- Safety and Workers’ Compensation: Implementing safety protocols and managing workers’ compensation claims.
- Regulatory Compliance: Easily expand into new states and stay updated with local, state, and federal regulations.
Benefits of Partnering with a PEO
1. Cost Savings. Partnering with a PEO can be cost-effective. While you’ll pay a service fee, the savings from reduced fines, penalties, and insurance costs often outweigh this expense. PEOs leverage their buying power to negotiate better benefits and workers’ compensation rates, which can result in lower premiums for your production/studio.
2. Reduced Administrative Burden. A PEO takes on various administrative tasks, including managing payroll, benefits, and HR duties. This allows you to focus more on new productions and less on compliance and administrative challenges.
3. Access to Expertise. PEOs bring specialized knowledge in compliance, safety, and HR management. By partnering with a PEO, you gain access to professionals who understand the specific nuances and regulations of the entertainment industry, helping you navigate the complexities of compliance more effectively. Examples of these services include Safety Walk-through of studio/sound stage with report, OSHA/Forklift certified training, and HR advisory (Handbook & Termination guidance).
- Employee Benefits & Administration. One of the key elements to any successful business is the ability to offer quality, highly sought after employee benefits options. Most PEOs offer full Benefits Services package that includes everything employees need in order to maintain a sustainable work life balance while improving their physical and mental health, wealth, and wellness. A robust employee benefit package includes:
- Major Medical Insurance
- 401k
- Ancillary benefits including Dental, Vision, Disability Insurance, Life Insurance, Critical illness, and offering FSA/HSA accounts
- COBRA administration
How PEOs Manage Risks in Entertainment
1. Regulatory Compliance. The Entertainment Industry must adhere to various labor laws and regulations, which can vary by state and frequently change. A PEO assists by:
- Keeping track of evolving employment laws at the federal, state, and local levels, including adhering to Wage Order 12.
- Managing tax reporting and other regulatory requirements.
- Helping with compliance in multiple states if your production operates across state lines.
2. Employee Relations. Managing HR tasks such as performance reviews, hiring, and firing can be complex, especially when adhering to laws enforced by entities like the Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC). A PEO provides:
- Expertise in employment practices and legal requirements.
- Support with documentation and management of paid leave, sick pay, and other employee benefits.
- Guidance on handling employee relations issues, reducing the risk of potential claims.
3. Workers’ Compensation / Workplace Safety. PEOs offer workers’ compensation insurance, which covers your employees in case of work-related injuries. Studio/Production environments face daily risk especially relating to action scenes or what the categorizes it as “stunts”. A PEO’s workers’ compensation plan can reduce the financial impact of these incidents and manage claims efficiently, allowing you to focus on producing rather than administrative headaches.
In a production environment, safety issues might include proper handling of tools, maintaining a clean and hazard-free environment, and ensuring that all staff are trained up to OSHA standards. PEOs help by:
- Providing up-to-date training on safety standards.
- Ensuring compliance with OSHA regulations, such as proper use of personal protective equipment (PPE).
- Developing customized safety plans to address specific risks associated with film production.
When does it make sense to move into a PEO?
It makes most sense to transition into a PEO structure when you are growing to a headcount of anywhere from 5 to 200 internal employees, and don’t have the means to bring on a full-time HR & back-office payroll team. For a fraction of the cost, you unlock a fully remote payroll & HR team to fully advise and help manage your HR duties & processing.
If you’re looking to offer benefits for the first time or improve on the quality of benefits you currently offer, moving to PEO also makes a lot of sense due to the buying power. PEO’s group all their clients together and go to market as large group and typically see a sizeable cost reduction. This allows you to either reduce spend, or increase the quality of benefits you offer.
To leverage a PEO for your production or studio, start by evaluating your current compliance and risk management strategies. Look for a PEO with experience in the entertainment sector and a strong track record in managing compliance and risk for similar practices.
By partnering with a PEO, your Production Company/Studio can stay compliant, reduce risks, and focus on delivering exceptional productions.
