Lax oversight of local employment regulations and compliance could lead to severe regulatory fines and penalties. Bureau of Economic Analysis.Īlthough hiring globally can help fill employment needs, it can also expose organizations to risk when dealing with a key foreign worker demographic: international independent contractors.
companies continue to look overseas for talent, with worldwide employment of foreign workers standing at over 42.5 million workers, according to the U.S. If the tax exempt waiver is granted by the department, the nonresident entertainer must inform the venue/employer.U.S. Nonresident entertainers who are exempt from Wisconsin income or franchise tax should request a waiver from the Department of Revenue by filing Form
WT-12 Nonresident Entertainer's Lower Rate Request at least 30 days prior to the Wisconsin performance. The nonresident entertainer should file Form The nonresident entertainer may request a rate less than 6% of the total contract price, on the basis that the ordinary and necessary deductible expenses in performing the services required by contract would merit a lower rate.
Travel expenses are payments to, or on behalf of, an entertainer that are 1) made under an accountable plan and 2) for actual transportation, lodging, and meals that are directly related to the performance. If there is no contract covering the nonresident entertainer's performance in Wisconsin, the total contract price is the amount of consideration payable as a condition or result of the entertainer's performance in Wisconsin.Įffective for taxable years beginning on or after January 1, 2014, total contract price does not include travel expenses. It also includes any specific amounts to be paid to the nonresident entertainer or subcontracted services required by the nonresident entertainer. The 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. If there is no resident person, "employer" is any nonresident having receipt, custody or control of the proceeds. If there is no such person, then the "employer" is the resident person having receipt, custody, or control of the proceeds of the event. Generally, the nonresident entertainer must file a surety bond or make a cash deposit with the Wisconsin Department of Revenue in the amount of 6% of the total contract price at least seven days before the performance.Īn employer is any Wisconsin resident who contracts for the performance of a nonresident entertainer in Wisconsin. The venue or employer remits the amount withheld to the Wisconsin Department of Revenue using Form WT-11 within five days after the performance. The performance venue or employer of the nonresident entertainer must withhold tax of 6% of the total contract price if the nonresident entertainer does not provide proof of filing a surety bond or cash deposit.
What are the options for making the tax prepayment?.The prepayment of tax is required to guarantee payment of income or franchise tax, sales or use taxes and any penalties and interest. What are the Wisconsin nonresident entertainer prepayment of tax requirements?Įffective for taxable years beginning on or after January 1, 2014, Wisconsin law requires prepayment of tax if the total contract price for the Wisconsin performance is more than $7,000.A nonresident entertainer is a nonresident person (a person who is not a legal resident of Wisconsin) or a foreign corporation, partnership, or other type of entity, not regularly engaged in business in Wisconsin who furnishes amusement, entertainment, public speaking services or performs in sporting events in Wisconsin for a consideration.Ī foreign corporation, partnership, or other entity is one organized under the laws of a state other than Wisconsin or a foreign country.
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