Payments to Foreign Entertainers
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.
- Before processing a payment, the department and the professional entertainer or athlete will complete the Professional Entertainer or Athlete Payment Form
- Department will submit the completed form to Payroll Services along with the following documentation:
- Payroll Services will review the form and approve prior to issuing the payment
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.
01/31/2021: reviewed content
Payroll Services: (352) 392-1231