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Payments to Foreign Entertainers

Directive Statement

This directive establishes the proper methods of making payments to foreign entertainers or athletes.

Reason for Directive

Payments made to foreign entertainers and athletes are subject to federal withholding taxes of 30 percent and must be reported to the IRS on Form 1042-S. U.S. agents of foreign entertainers may enter into Central Withholding Agreements with the IRS to reduce their withholding tax liability.  Information concerning the withholding taxes and requesting a Central Withholding Agreement with the IRS may be found on their website.

Who must comply?

All departments processing a payment to a foreign entertainer or athlete.

Procedures

  1. Before processing a payment, the department and the professional entertainer or athlete will complete the Professional Entertainer or Athlete Payment Form
  2. Department will submit the completed form to Payroll Services along with the following documentation:
    • Itinerary of dates and locations of all local events scheduled
    • Official letter of activity by hosting unit
    • Copy of Central Withholding Agreement (if applicable)
    • IRS Form W-8BEN
    • Supplier Tax Information Form
    • Copies of Immigration Documentation
  3. Payroll Services will review the form and approve prior to issuing the payment

Definitions

Withholding Agent

A withholding agent might be the foreign entertainer or athlete’s agent or manager, a presenter, an accountant, or anyone else who is independent of the entertainer or athlete and is acceptable both to the IRS and the entertainer or athlete.

Last Reviewed

05/01/2020: reviewed content 

Resources

IRS FAQ s about Central Withholding Agreements

IRS Information about Form W-8BEN

Contacts

Payroll Services: (352) 392-1231

Disbursements: (352)392-1241

Procurement: (352)392-1331

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