Understanding the Residuals Process & FAQs

Congratulations! You got the job as a principal performer on a free TV, basic cable, pay cable, video/DVD, new media or theatrical project. You did the work, got your initial pay and the project was released. Then the project was shown outside of the original market or date.

What does that mean?

Well, thanks to SAG-AFTRA’s collective bargaining agreements, this means that you should be getting a residuals payment! But there is a lot that happens between the time the payment is prompted and the time you receive the payment. 

Here is broad overview of what happens at SAG-AFTRA to get the payment processed and mailed to you:

Step 1: Delivery 

The first step in getting a residuals payment to performers starts with the payroll house or studio. Boxes of checks are delivered to SAG-AFTRA daily; SAG-AFTRA does not issue the checks. Rather they come from the payroll house or studio, and the union processes the information, creates accompanying statements, and sends the residuals payment to performers. 

It is important to note: In most cases, the check itself does not have any pertinent information to identify what and why performers are being paid. 

Step 2: Confirmation

Each delivery includes a check and paperwork that shows the production, the performers and all other information needed in order to begin the residuals process. In this step, boxes are stamped ”received,” opened and organized to confirm that all necessary information has arrived. The checks are then sorted and batched in preparation for the next step.  

Note that the received date is included in the batch number that is printed on the statements. The format is the date received followed by two alpha characters. For example, May 1, 2023, could be 050123AA. 

Step 3: Check and Data Capture 

Depending on how the payroll house delivers the checks to SAG-AFTRA, they will either be processed manually or electronically. If received electronically, it will often be processed as an electronic file. Otherwise, they will either be scanned into the SAG-AFTRA system or entered manually. Sometimes, a combination of electronic and manual input is needed in order to process the data. 

Step 4: Preload Validation

During the Preload Validation step, checks and payment reports are matched and confirmed. This is where any missing or mismatched production, market and/or check information is caught. Missing records are requested and inaccurate data is promptly corrected.

Step 5: Load

This step is where the scanning and processing takes place. Each payment’s validated information is loaded into the SAG-AFTRA system to match data to the signatory production. This information is then matched to the appropriate member through member records. It is during this step where a performer will see their residuals listed as “in process” on the Residuals Tracker. 

Step 6: Quality Assurance 

Quality Assurance is where a final confirmation is done to ensure information regarding performers, productions, and more is correct. Discrepancies between studio data and SAG-AFTRA records are resolved. Mismatches in data often include incorrect Social Security numbers, incorrect tax IDs from payers, and similar performer names in member records, to name a few. Once this is done, individuals are matched to the payment. At the end of Step 6, performers can expect to see their Residuals Tracker say “Mail date.” This means that both the dollar and payment amount have been validated and are ready for mail or direct deposit.

Step 7: Generate Statements & Matching Checks 

Once the mail date is set, statements can be generated. The statement provides information on what is being paid in the check, such as which films, episodes or markets. Each statement is produced and issued a unique barcode. Statements and checks are then electronically matched by the barcodes and collated through two customized Xerox Nuvera printers. Each machine is roughly 24 feet long! Once the checks and statements have been matched and collated, they are prepared for mailing. 

Step 8: Insert Into Envelopes & Mail

In the final step, checks and statements are folded by a Quadient mail machine, run through a postage meter and are ready for mail. A scanner will then read the barcodes and matched checks and statements are inserted in envelopes. Filled envelopes are sent to the mail house for bulk postal sorting and delivered to the post office twice daily. At the end of this step, the performer will receive their payment.   

For more information about residuals, please visit the SAG-AFTRA Residuals webpage. You can also contact the Member Care Contact Center at (855) 742-2387 or fill out the Residuals Inquiry Form for general questions related to specific pictures.

If you have any questions regarding residuals or any other topic, please visit the SAG-AFTRA FAQ page.

Top photo: These two customized Xerox Nuvera printers electronically match and collate statements and checks. Each machine is roughly 24 feet long!