Income Tax Withholding Requirements Would Include Performers
The Massachusetts DOR has proposed amending the regulation that provides the requirements for employers and others to withhold tax on behalf of individuals to include payers of performers or performing entities.
A "performer" may be:
(1) an athlete such as a wrestler, boxer, golfer, tennis player, sports team member, or other athlete who is paid for competing, demonstrating, making a public appearance, or endorsing merchandise, as well as a person paid to further an athlete's performance or an athletic event, performing services such as owner or leader of a performing entity; agent or manager of a performing entity or performer; referee, coach, or trainer; member of a production crew; or
(2) a paid entertainer or speaker, such as an actor, singer, musician, dancer, circus performer, comedian, celebrity, public speaker or lecturer, as well as any person paid to further an entertainer's or speaker's performance, such as an owner or leader of a performing entity; agent or manager of a performing entity or performer; or writer, director, coach, designer, or member of a sound, light, stage, or production crew.
A "performing entity" is defined as corporation, partnership, limited partnership, limited liability company, corporate trust, or other entity that employs, engages, or comprises one or more performers.
Withholding would not be required on behalf of performers or performing entities if the payer reasonably anticipates that gross payment would not exceed the lesser of the following annual thresholds during calendar year 2006:
- $2,000 per performance or
- $10,000 to one payee or
- $20,000 to all payees.
The following annual thresholds would be applicable during calendar year 2007 and thereafter:
- $1,000 per performance or
- $5,000 to one payee or
- $10,000 to all payees.
Effective for tax years beginning on or after January 1, 2006, a performing entity would have to determine how much of the aggregate income and MA income tax withholding reported by the withholding agent on federal Form 1099-MISC or federal form 1042-S is attributable to each member and furnish each member with a withholding allocation form showing the member's attributed withholding amount.
Find out how our expertise in Tax Services can add value to your business. Email us or call us at 1 (888) 875-9770.
related links
International Tax Services
Newsletters and Articles
Wealth Management
Tax Rates
Tax Tools and Calculators
Resources
|
