BREAKING NEWS: AXIUM PAYROLL SHUTS DOWN

By Scott Macaulay in News
on Tuesday, January 8th, 2008

In a sudden and stunning piece of news that’s just breaking within the film production comunity, Axium, one of the industry’s largest payroll services and a leader in the administration of state tax incentives for independent producers, is closing and will be filing Chapter 7 bankruptcy. In a Chapter 7 corporate bankruptcy, a company ceases its operations and its assets are liquidated to its creditors and investors by a court-appointed trustee. We will try to have more details, including news of what will happen to current productions that have their payroll with Axium, soon.

UPDATE, 7:00PM: News on Axium’s closing is beginning to appear in other media outlets. The Hollywood Reporter is currently headlining it on their site in a story written by Borys Kit and Carolyn Giardina.

From the piece:

Axium International, the industry’s largest payroll services providers as well as a source for production and gap financing, has closed its doors indefinitely.

The company’s home office on Wilshire Boulevard as well offices in Burbank, New York, Vancouver, Toronto and London are quiet, with employees told via e-mail not to show up to work starting Tuesday.

Sources said that company president Ruben Rodriguez was no longer with the firm.

The Hollywood Reporter also reports that one of its sources claims that the IRS was involved in the shutdown, although the IRS would not comment.

Defamer has more, printing an email sent by an L.A. producer to an email chain of colleagues.

From that email:

All the Axium offices worldwide (LA, NY, CHI, London, Mexico City, Canada) are shut down permanently, and the accounts have been frozen. It does not appear that the Axium employees are going to be paid for their last week of work or any sort of severance, as it is indeed a bankruptcy.

For working film producers, there is a sad story. Axium has been a part of the film community, a contributor to independent film non-profits and, through its various businesses, has handheld many productions through the different state tax rebate programs. Film producers working right now, however, might be in an especially tough spot if Axium’s accounts are indeed frozen and the company is holding payroll bonds intended to guarantee and finally cover their production payrolls. We’ll update as soon as we have more information.

Tags:

Anonymous

Call Paychex 212-239-9400, we have many past clients of Axium calling us now to switch their payroll. Mention this blog when you call.
Anonymous

If anyone needs help getting payrolls done as soon as this week, call Paychex we can help you now 212-239-9400
kmaarouf

WorkforceLogic has been offering payroll services with comprehensive benefits since 1994. Call us at 1-866-296-3343 for details.

http://www.workforcelogic.com
Anonymous

Vedior Profesional Services can offer payroll servicing quickly and efficiently. Please call their Los Angeles Branch at 310-277-7900 for any questions on contract staffing needs.
Anonymous

Cast & Crew actually works in the entertainment industry. Call them.

http://www.castandcrew.com
Tel:(818)972-3222
Anonymous

Will Axium be able to send out the W-2s for all the people who worked “for” them in 2007?!!!
Scott Macaulay

W-2s, 401K contributions, residual payments to the guilds — all of these are questions at the moment. I’ll post when there are some answers.
Anonymous

Forget the rest and come to the best!

Media Services – Serving the entertainment industry for over 25 years.

http://www.media-services.com
Anonymous

Love the way all the payroll companies are posting blogs. I am looking at a $300,000 loss do to this shit. I paid the staff, client paid ECG Axium and me? Friggin screwed.
Bunch of snakes.
Chris
New York
Anonymous

I heard about this months ago. Yes, the IRS is involved. You know, if you run a payroll company, you’re supposed to be depositing employees withheld taxes with the government. It sounds like someone had their fingers in the till.
Anonymous

This affects more than Axium Payroll. Axium is a huge company that purchased my employer, Chimes, in June, and also had many other sub companies. We received an email yesterday evening at 5:30 PM EST telling us the company’s bank accounts were frozen and not to report to work until further notice. Today they filed Chapter 7 and swept all our bank accounts, and noone is receiving their paycheck (due today) for the last 2 weeks of work. Its unfortunate because they ran payroll for all of our suppliers, who also will not get paid for these last two weeks. I would like to see more news awareness about this issue since it was done in such a thoughtless manner. Lots of people will not be able to make their house payment, etc. as a result of this.

- former Chimes employee
Anonymous

Entertainment Partners is number 1
in the industry, you should contact them: http://www.entertaimentpartners.com
Nicole

For those of you affected by this unfortunate turn of events, we would like to make you aware that our payroll company – Indiepay (www.indiepayroll.com) – can provide for a seamless transition of your payroll processing needs.

Axium will no longer be in a position to support its Vismax accounting software, however, Indiepay can provide both a clean import of the existing Vismax accounting data into the Indiepay software, and the technical support to address any software needs that may arise.

For further information, please go to our website at http://www.indiepayroll.com or contact us directly at 212-206-1724.
Anonymous

With all of the heartache this is going to cause the people who really work in the industry, I know as a crew member I would start asking about the financial backing of companies like Cast & Crew, Media Services, IndiePayroll, etc. It seems like these companies are sort of “Johnny Come Lately’s” and are going to be picking at the carcass of Axium; how do we know they have the money to back up their checks?

As for Paychex, WorkforceLogic and ADP, you guys never wanted to be concerned with this industry and it’s peculiarities, so thanks but no thanks.

- Dollarless Grip.
Anonymous

nextSource, Inc. can offer immediate payrolling services with comprehensive benefits.

Call us at 800.727.6583

http://www.nextsource.com
Anonymous

ABS Payroll & Production Accounting Services – an ENTERTAINMENT payroll company has been providing services to the industry since 1985. Call today for a quick turnaround! (818) 848-9200
Anonymous

This is a serious domino effect in so many different areas. Axium was not current with reporting benefits to the guilds. Only hope they were current with submitting everyone’s taxes to the IRS.

And to set the record straight, president Ruben Rodriquez was still working with Axium at the time of the shutdown. Matter of fact, Ruben was in the Axium office on Tuesday, the day following the shutdown.
Anonymous

I am not working for any Payroll company but I am a prod accountant that has been in and serving this industry for over 20 years… My money (pardon the pun-at this unfortunate and heart rending time)is on Media Services. I have worked with some of the others – small and big as well as Paychex for basic staff needs…Media has been nothing but professional and recommend them to all my clients. I am here to help and advise you if you need it. my partner and I have been doing this for a long time and this is not the 1st time a business has taken the $ and run – but this impacts an entire industry – not just a few people. Bad timing (not that there is ever good timing for this ) but just after the holidays…

Caren Franklin
Reel Numbers Entertainment Inc.
caren@reelnumbers.com
http://www.reelnumbers.com
Film Production Accounting and Financial Consulting
Services for the Entertainment Industry!
(C) 516.457.7200
(O) 212.696.8670
sales@abspayroll.net

Call ABS Payroll & Production Accounting Services – “The Independent Filmmakers Choice”

Smaller productions & low budget projects okay!

(818) 848-9200

Proudly serving the entertainment industry for over 20 years!
Anonymous

This appreared in LA Times:
Jeff Begun, an Axium vice president, said payrolls the company had been processing were being moved to competitors Cast & Crew Entertainment Services and Entertainment Partners.

“We have worked it out so it will be seamless for clients.”

——– The seamless part is soooooooo bogus. Mr. Jeff Begun is not going to be the one to deal with the transition of transferring all of the data form one software to another. It would be the same as transferring a word document to excel.

-accountant in the movie industry for 20 years
KHaines

Emplify, LLC is currently looking to speak with Marketing/Sales reps, Paymasters, and anyone else out of work from Axium who are looking for employment.

Additionally, any client left in the dust who needs their payroll taken care of is welcome to contact us as well.

Please send me an email for more information. We are financially solvent and a member in good standing of the watchdog organization of the same industry as Axium, Entertainment Partners, etc.

khaines@emplifyhr.com
Anonymous

Just a note. Yes Ruben Rodriguez was in office when every thing happened and people were packing up. Like the coward that he is, he did not come out of his office to address the employees. We were asked to come the following day (tuesday) I went and employees were still trying to get client files in order. Additionally we were told that Ruben was at Cast & Crew trying to place coordinators and accounts. I learned to today he was there pitching Axiums clients and making a deal for himself. Ruben is now an employee Cast & Crew along with the clients dumb enough to follow him. Or at least that’s what the rumor mill is gristing out. Meanwhile, the rest of us are scrambling and talking to our landlords to stay another month.

Signed, Possibly Homeless Former Axium Employee
Anonymous

Understanding the “privacy” issue when dealing with the IRS, should they not bear some responsibility for allowing these things to happen? I am a Canadian affected by this, but allowing an Organization to run full-steam ahead and manage vast sums of others’ finances with “allegedly” serious infractions looming seems, let’s say, fiscally irresponsible?
Anonymous

The IRS will catch up with Rodriguez. He’s been playing this game for YEARS! Clients beware!
Anonymous

Softex Consulting is offering Payroll, HR and many other benefits for ECG and Axium past clients
We are extending our hours for YOU. Whatever it takes… We will HELP YOU NOW!! Call 1-877-619-9884
Sharon Nelson
CEO

http://www.softexconsulting.com
F.

To the various payroll outfits advertising your wares here: you come off like a bunch of ambulance chasers. Get a grip.

If you think anybody reading this thread is going to see your posts as anything but crass opportunism, think again. To you Axium’s demise may be a business opportunity, but it’s a potential disaster for freelance artists and independent filmmakers who relied on this company for timely payment and tax reporting.
Anonymous

As a wife of someone in the “industry” this hit us from left field – it is hard enough with the writers strike and all the uncertainty that goes with that but to then work for 3 weeks and think “thank god” at least we will have a check – this sucks – my hubby has been in this industry for almost 30 years –

Now we are so on edge – I don’t know what to do -

THE WORST PART OF IT IS THE LACK OF COMMUNICATION FROM THE LEADERSHIP AT THE UNION!!!!

When you take a percentage of my pay every job I expect to hear what you are doing to help the members in this time of crisis!!!
Anonymous

Get in contact with Allegis Group Services…they have a lot of experience in the staffing industry!
http://www.allegisgroupservices.com
877.247.4426
Anonymous

If you are looking for a replacement payrolling company with over 13 years experience, call Payrolling.com.

http://www.payrolling.com

Benjamin Jack
858.866.2637
Anonymous

I’m a NYC line producer, and I actually make the decision about which payroll company to use for the crew’s payroll. I had, up to this point, used Axium as my preferred company.

Here’s a note to ALL of the companies posting on this blog urging us to use them now that Axium’s gone out of business: ain’t gonna happen. And what’s worse, is you’ve now tainted yourself as opportunistic without even having the chops to back up what you advertise.

Too bad. Instead of learning who your market is, making the phone calls to reach out to us individually – as the marketing people from Axium (and EP) do – you’re trolling for business. You want us to work with you? Call us. Don’t post over the carcass of an film world stalwart.

BREAKING NEWS: AXIUM PAYROLL SHUTS DOWN

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