Entertainers

Nonresident entertainers or public speakers are performing services, therefore all entertainment services should be coded to Account Code 2620.

All payments made to a nonresident entertainer or public speaker for performing in Wisconsin, except those excluded from the total contract price, are presumed subject to withholding if the total contract price for the performance is more than $7,000. The employer must file Form WT-11 within five days of the conclusion of the nonresident entertainer or public speaker’s performance. The employer withholds 6% of the total contract price, unless a lower rate is approved.

Exception. The employer is not required to withhold from the nonresident entertainer or public speaker’s payment if:

• The total contract price is $7,000 or less,
• The nonresident entertainer or public speaker provides the employer proof of filing a sufficient bond or deposit with the WI Department of Revenue at least seven days prior to the performance in Wisconsin, or
• The nonresident entertainer or public speaker provides the employer a copy of a waiver issued by the WI Department of Revenue.
• If the nonresident entertainer or public speaker provided written documentation from the WI Department of Revenue, prior to payment being made by the UW, then the UW must follow the instructions and withhold the reduced rates outlined in the provided WI Department of Revenue documentation.

Total contract price

“Total contract price” is the amount of consideration indicated in the contract as the price for the nonresident entertainer’s performance, including amounts payable in money or the cash value of any medium other than cash. It also includes any specific amounts to be paid to the nonresident entertainer or subcontracted services such as lighting, sound, or any other special services or properties required by the nonresident entertainer.

Exceptions: Total contract price does not include:

1. Amounts paid by the employer to persons other than the nonresident entertainer or public speaker for ordinary and necessary expenses in the production of the event (building rent, staging material costs, utility connections, etc.), unless a specific dollar amount is specified in the contract for such expenses. If there is no contract covering the Nonresident entertainer or public speaker performance in Wisconsin, the total contract price is the amount of consideration payable as a condition (or result) of the nonresident entertainer or public speaker performance in Wisconsin.
2. Payments for travel expenses made to, or on behalf of, a nonresident entertainer or public speaker that are (1) made under an accountable plan and (2) for actual transportation, lodging, and meals that are directly related to the performance.

Individual members of a group not owned by anyone

In the case of a nonresident entertainer or public speaker group of independent members, not owned by any single member of the group or any other sole proprietor, partnership, or corporation, the total contract price must be determined for each separate independent member. The group must provide the employer with a signed statement from the leader of the group, or the promoter or manager, attesting to the members’ distributive shares of the total contract price. False statements made under this provision are subject to income tax penalties for filing false returns, and copies of such statements must be submitted to the Department of Revenue by the employer.

Accumulative total contract price

If a nonresident entertainer or public speaker performs a number of times during the same calendar year, for separate total contract prices of less than $7,000 each, the nonresident entertainer or public speaker may still be subject to the surety bond/cash deposit requirement or employer withholding. The nonresident entertainer or public speaker becomes subject to the requirement or withholding at the time the accumulative total contract prices exceed $7,000, and thereafter, during the same year.

Note: It is the responsibility of the nonresident entertainer or public speaker or their representative to notify an employer if their accumulative total contract prices exceed $7,000. At the time the $7,000 threshold is met, the amount of surety bond or cash deposit, or the amount to be withheld by the employer, is based on the accumulative total contract price with that employer for the year, not just the amount in excess of $7,000.

Example 1: Nonresident entertainer or public speaker A performs in February under a contract with Employer B. The total contract price is $3,000. Nonresident entertainer or public speaker A performs again in July under a contract with Employer B. The total contract price is $5,000. Nonresident entertainer or public speaker A becomes subject to the surety bond/cash deposit requirement or employer withholding at the time they enter into the contract for their performance in July. The amount of surety bond or cash deposit, or the amount to be withheld, is based on the accumulative total contract price with Employer B ($8,000).

Example 2: Assume the same facts as in Example 1, except that nonresident entertainer or public speaker A’s performance in July is under a contract with Employer C. The amount of surety bond or cash deposit, or the amount to be withheld, is based on the total contract price with Employer C ($5,000).

In the case of multiple performances during a calendar year at any UW campus, the Total Contract Price is the cumulative amount for the year at each UW campus.

See Form WT-11 (Fill-In Form) and Form WT-11 Instructions.

All contracts must be signed by the appropriate authorized University official. Please contact your Divisional Business Dean’s Office for guidance on entertainer contracts and required signatures.

1. When making all nonresident entertainer or public speaker payments it is the responsibility of each paying Center/Department/Unit to assure that they have read and comply with the requirements of this policy as listed above for nonresident entertainer or public speaker payments with a total contract price of $7,000 or more.
2. Complete the appropriate payment request paperwork per UW established procedures (PIR, DP, and P.O.).
3. Complete the WT-11 and provide the nonresident entertainer or public speaker a copy for their records and personal tax returns.
4. It the nonresident entertainer or public speaker applied for exemption from entertainer tax withholding, or for a reduced rate from the WI Department of Revenue, they must provide written documentation to the UW from the WI Department of Revenue, prior to payment being made by the UW, then the UW must follow the instructions and withhold the reduced rates outlines in the provided WI Department of Revenue documentation.  Attach this paperwork to the payment request forms (PIR, DP, and P.O.)
5. If a waiver is issued for a non-purchase order related item, it must be attached to the Payment to Individual Report (PIR) and forwarded to the Accounting Services Tax Compliance Office. For a purchase order transaction, the forms should be attached to the requisition/purchase order.
6. After verifying, auditing, and withholding the appropriate WT-11 tax, Accounting Services will issue the withholding tax check. Accounting Services will then contact the Tax Compliance and Reporting Office for verification of withholding check and WT-11 before Accounting Services remits the WT-11 and Withholding Check to the Wisconsin Department of Revenue at Wisconsin Department of Revenue, P.O. Box 8965, Madison, WI 53708-8965

On occasion, entertainers request that the UW split payments between the Nonresident Entertainer or Public Speaker, the pension fund, the union, the agent, and others.  It is University of Wisconsin-Madison policy not to honor these requests because the split causes difficulties in tax withholding and reporting. Of course, if there is more than one Nonresident Entertainer or Public Speaker (several members of a band, for example), it is allowable to make separate payments to the individual nonresident entertainer or public speaker because this helps in tax withholding and reporting.

A Central Withholding Agreement (CWA) is an agreement entered into by the non-resident alien (NRA) athlete or entertainer, a designated withholding agent, and an authorized representative of the Internal Revenue Service (IRS). The agreement is for a specific tour or series of events and withholding is based upon the budget provided and net profits estimated. The CWA is not effective unless all parties have signed the agreement. The NRA must be in compliance for all required Federal Income tax returns and payment obligations. In the agreement, they agree to timely file Form 1040-NR (or Form 1040 NR-EZ) for the year in which the CWA covers independent personal services. If the tour covers a period that spans additional calendar years, more than one CWA may be required.

Processing CWA at the University of Wisconsin

• Obtain a copy of the CWA from the NRA athlete, entertainer, or their U.S. agent.
• Process payments as per standard UW processing for NRA’s on the Tax Compliance and Reporting web page under the flowchart in the Nonresident Alien (NRA) section.

Note: The UW must obtain the documents in the flowchart above because the CWA only addresses the taxation issue and does not address the immigration issue and visa status of the individual or entity in the CWA. The only documents that the UW does not need to obtain from the flowchart above are the documents dealing with tax treaties because taxes are not required to be addressed or collected due to the CWA.

Note: Visa restriction must be adhered to as directed in the flowchart as many CWA guests are on P-3 (Artist or Entertainer in a Culturally Unique Program) which may only be employed “incidental to status” only by the petitioning employer or agency through whom the status was obtained.  If the petition was sponsored by an agent on behalf of several employers, each entity must have been included on the itinerary at the time of USCIS’ approval of the application. May be employed and compensated only by the petitioning employer or agency through whom the status was obtained. Visa sponsors’ name can be located at the bottom of the U.S. Visa.

These additional conditions for the personal services of Nonresident Entertainer/Public Speaker/performers/public entertainers are made between the Board of Regents of the University of Wisconsin System on behalf of the {Enter UW Department Name Here}at the University of Wisconsin -Madison (hereinafter called “University”) and the undersigned nonresident entertainer or public speaker/performer/performers/public entertainer/public entertainers (herein called the “Artist” even though there may be more than one person).

By signing an entertainer or public speaker contract with the University of Wisconsin (UW) all entertainers and public speakers are subject to all policies and procedures of the UW and are required to provide the UW all information as required by such policies and procedures, Homeland Security, Wisconsin Department of Revenue, and the Internal Revenue Service (IRS). Entertainers or public speakers are also required by signing this contract and addendum to provide the UW the information listed below before any payment can be made.

A. Wisconsin Department of Revenue Requirements

Wisconsin law requires all payments made to a nonresident entertainer or public speaker for performing in Wisconsin, except those excluded from the total contract price, are presumed subject to withholding if the total contract price for the performance is more than $7,000.  The employer must file Form WT-11 within five days of the conclusion of the nonresident entertainer or public speaker’s performance. The employer withholds 6% of the total contract price, unless a lower rate is approved.  For purposes of this law, each University of Wisconsin campus is considered an employer. If a surety bond or cash deposit is not filed, the University is required to withhold 6% of the Total Contract Price and submit it to the Wisconsin Department of Revenue using a form WT-11.

If the nonresident entertainer or public speaker provided written documentation from the WI Department of Revenue, prior to payment being made by the UW, then the UW must follow the instructions and withhold the reduced rates outlined in the provided WI Department of Revenue documentation.  If the nonresident entertainer or public speaker does not show proof to the University that such surety bond or security deposit was filed with the Wisconsin Department of Revenue, the UW is required to withhold 6% from the nonresident entertainer or public speaker’s payment and remit the 6% to the Wisconsin Department of Revenue.

The UW is required to complete a Wisconsin Department of Revenue WT-11 form for all nonresident entertainer or public speaker contracts if the total contract price for each individual performance contract that exceeds $7,000.  In order to complete the WT-11 form the nonresident entertainer or public speaker is required to provide the UW the following:

1. Stage or professional name of nonresident entertainer
2. Legal name of entertainer
3. Type of entity (Individual, Corporation, Partnership, or Other)
4. U.S Taxpayer Identification Number for the Type of entity listed above.  If the nonresident entertainer or public speaker is an individual, the Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is required. If the entertainer is a U.S. entity (corporation, partnership, other) the Federal Employer Identification Number(EIN/FEIN) is required.
5. Address (street, city, state, zip)
6. If a surety bond or deposit is done with the Wisconsin Department of Revenue the nonresident entertainer or public speaker must provide a copy of the documentation stating the surety bond or deposit has been done. The documentation required is a letter from the Wisconsin Department of Revenue.
7. Country of residency for tax purposes
8. If the nonresident entertainer or public speaker’s country of residency for tax purposes is not the United States then the nonresident entertainer or public speaker is not only considered a nonresident entertainer or public speaker (nonresident of the State of Wisconsin) but also a nonresident Alien (NRA) of the United States of America (U.S.A.)

B. Nonresident Alien (NRA) Requirements

The following requirements are from Homeland Security and the Internal Revenue Service (IRS):

1. The UW payer must obtain various immigration documentation from the beneficial owner of the income (each nonresident entertainer or public speaker) to assure (1) identity of payee, (2) immigration status of the payee, and (3) ability to pay the payee on the visa that they entered the U.S. as each visa has restrictions on what can be paid on them (see Restrictions and Tax Treaties).The documents include:
   1. Picture pages of passport
   2. I-94 plus Homeland Security stamp for NRA’s in the U.S. on a visa or ESTA and Homeland Security stamp in passport for NRA’s in the U.S. on the Visa Waiver Program
   3. I-20 or DS-2019 if on an F-1 student visa or J-1 student Visa.
2.  If the nonresident entertainer or public speaker has established a Central Withholding Agreement (CWA) with the IRS, a copy of the CWA must be presented to the UW. The CWA must be followed which normally means no taxes are withheld from the payment to the entertainer or public speaker, but please reference the CWA for details.
3. If no CWA is in place and there is a tax treaty for the services (Tax Treaties), the UW also needs to obtain a completed and signed IRS Form W-8BEN (NRA equivalent of the W-9 for U.S. Persons) and 8233.  The Form W-8BEN and Form 8233 require a U.S. Taxpayer Identification Number (SSN, ITIN, or EIN). If no U.S. Taxpayer Identification Number(TIN) is provided the forms are not considered complete and the tax treaty cannot be granted; therefore, 14& taxes are required to be withheld for scholarships/fellowships, or 30% federal tax must be withheld for all non-scholarships/fellowships and submitted to the IRS.
   1. Picture pages of passport
   2. I-94 plus Homeland Security stamp for NRA’s in the U.S. on a visa or ESTA and Homeland Security stamp in passport for NRA’s in the U.S. on the Visa Waiver Program
   3. I-20 or DS-2019 if on an F-1 student visa or J-1 student Visa.

Attestation: The undersigned have read and acknowledges the above sections in this Tax Addendum. The undersigned agree to provide and/or comply with the requirements outlined in this Tax Addendum before payment will be made to them by the UW. This addendum must be signed at the time of contract signing.

__________________________________________________                _____________

Entertainer/Public Speaker                                                                    Date

__________________________________________________                _____________

Authorized Representative of Entertainer/Public Speaker                   Date

Effective 7/1/2007, process requires a PIR form instead of the contract page as the payment request/transmittal form.  This process applies for all entertainment contract transactions under $5,000. This also applies to entertainment contracts $5,000 and over only if your Division/Unit is delegated for contracts over $5,000.

This process is as follows:

• Complete the Entertainment Contract: Entertainment Contract

• Create a Payment to Individual Report (PIR).

• Attach a copy of the cover page for the contract to the PIR as supporting documentation.  A complete copy of the contract can be attached to the PIR but it is not a requirement by Accounting Services for payment…just the cover sheet to show that a contract has been created and is on file at the Division/Unit level.

• Obtain all necessary Department and Dean’s Office signatures on the PIR.

• Deliver/Drop-Off PIR directly to:

Room 5301, 21 N. Park Street

Box Labeled “Ent Contract”

Important Note:  The PIR is set up to properly document all applicable taxes and documents for both Entertainer Tax and Nonresident Alien (from foreign countries).