Parents, please note that a production payroll department does not need authorization to automatically deduct the statutory 15% from your child's gross earnings. However you must provide proper documentation with your child's Coogan account information everytime your child books a job in order for the production's payroll department to know where to deposit these funds. Often times parents neglect to either make sure the paperwork was submitted or even when it is submitted, parents neglect to follow up to with their child's bank to make sure the funds were transmitted.
New Coogan Law Information SB1162 and 210: It is solely the responsibility of the parent and/or guardian to establish the blocked trust account for their minor child. When a payroll department deducts the 15% required by law and no trust account has been set up, they will deposit those monies into a non-interest bearing account. If a trust account is subsequently set up, then they will deposit those monies for that minor into that Blocked Trust Account. If no trust account is ever set up,they will keep the funds in its non-interest bearing account for up to 180 days, SB210 requires that these funds be turned over to “The Actor’s Fund of America” as trustee.
Also, if your child works a job and the statutory 15% was NOT taken out of the check, first make sure you aren't expecting another check. If note, please make sure you take that responsibility and deduct the 15% and deposit it into your child;s account
Once the account is established, you will be required to provide each employer with the
Trustee’s Statement to the Employer. Attached will be a deposit authorization sheet
which should include the:
• Name of account holder
• Address of account
• Account number,
• Minor’s name as the owner of the account
• Trustee’s name (the parent, guardian or the appointed trustee)
• Institution’s tracking number for direct payroll deposits
What Parents Need To Know:
All money that goes into a Coogan Account are earnings that are considered the separate property of the child and cannot be accessed until the child reaches 18 or becomes emancipated.
Even though the Coogan Law requires the parent/guardian to set up this trust account within seven (7) days after the child's contract is signed by the minor and employer, it is advised that every parent set up a blocked account prior to the minor actually performing the contracted work.
The parent/guardian must set up such blocked trust account at a bank, savings and loan or credit union and the account must be insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Production Corporation (SIPC), or the National Credit Union Share Insurance Fund (NCUSIF).
Small sample listing of places you can set up a Coogan Account at in California
- First Entertainment Credit Union
- AFTRA/SAG Federal Credit Union
- Bank of America
- Bank of the West
- City National Bank
- Morgan Stanley/Smith Barney
- Union Bank of California
- Wells Fargo
An employer only has 15 days to pay you the Coogan money if you did your job correctly. Section 6752 of the Family Code (d)(3): “The minor’s employer shall deposit 15 percent of the minor’s gross earnings pursuant to the contract within 15 days of receiving the trustee’s statement pursuant to Section 6753”. Parents may file a complaint with the Labor Commissioner if payment was excessively late.
This was a survey done by Biz Parentz in 2007. Its still very informative and I believe everyone parent should look at it.
For more details on Coogan Accounts and what every parent should know, check out Biz Parents Coogan Information
UNCLAIMED COOGAN FUNDS
If your child earned money in California as a young performer any time after
2000, you might have unclaimed wages held in trust through the Coogan
Law. To see if your child has money, visit the The Actors Fund .
