Compensation that nonresident entertainers receive for performances in Minnesota is subject to a 2% nonresident entertainer tax, for payments exceeding $600. Carleton College is responsible for withholding the 2% tax from the nonresident entertainer payments, remitting the withholding amounts and reporting to the Minnesota Department of Revenue.
Gross compensation includes (but is not limited to):
- All compensation paid for a performance
- Reimbursed expenses (transportation, lodging, meals, sound and lights, security, etc.)
- Prize winnings at spectator events
Entertainers, also termed as Entertainment entities by the Minnesota Department of Revenue are:
- A nonresident entertainer who is paid for providing entertainment as an independent contractor
- A partnership that is paid for entertainment provided by nonresident entertainers who are partners
- A corporation that is paid for entertainment provided by nonresident entertainers who are stockholders of the corporation
Entertainers include (but are not limited to):
- Musicians, singers, dancers, comedians, actors, and athletes
Individuals who are full-year residents of North Dakota, Wisconsin, and Michigan are exempt from the entertainer tax; however, they must have regular Minnesota tax withheld unless they properly complete Form MW-R, Reciprocity Exemption/Affidavit for Residency. For Form MW-R please visit the Business Office or the MN Revenue Office website.
Federal Form W-9 (Request for Taxpayer Identification Number and Certification) must be completed by the non-resident entertainer and submitted to Carleton College. Individuals must supply their social security number and home address; businesses must supply their federal and/or Minnesota ID number(s).
If the non-resident entertainer fails to provide a federal ID number, a backup withholding of 8.5% in Minnesota is required.
Carleton College will provide a Federal Form 1099-MISC to every entertainer showing the total amount of entertainer tax withheld by January 31 of the year following the date of payment.