Film Accounting Glossary
Local hire
What is a local hire?
Also called resident hire, or local crew.
A local hire is a crew member engaged in the shooting jurisdiction who does not require travel, housing, or per diem, and who usually counts as qualifying labor for incentive purposes.
Because incentive programs often pay a higher rate on resident labor and exclude or cap non-resident wages, the local-versus-traveling mix directly changes the size of the credit. Residency is evidenced by documentation, typically a driver's license or tax filing, not by assertion.
Example
A program pays 30% on resident labor and 20% on non-resident. Moving four positions from traveling to local on $400,000 of wages adds $40,000 to the credit, and also removes their travel, housing, and per diem from the budget.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Evidenced by documentation such as a driver's license or tax filing, captured at hire rather than reconstructed at claim time.
Common mistake
Recording residency at claim time instead of at hire. Without documentation captured up front, qualifying labor becomes non-qualifying at audit.
Related questions
- Why do productions prefer local hires in an incentive jurisdiction?
- Because programs commonly pay a higher rate on resident labor, and local crew also remove travel, housing, and per diem from the budget.
- How is crew residency evidenced for an incentive claim?
- With documentation collected at hire, typically a driver's licence or state tax filing, rather than an assertion made when the claim is assembled.