Minnesota Entertainer Tax

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 www.taxes.state.mn.us/.

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 31st of the year following the date of payment.