Nonresident Entertainer Tax

You must withhold 2% from gross compensation paid for performances in Minnesota and remit to the Minnesota Department of Revenue.

Do not withhold this tax if any of these exceptions apply:

• You paid less than $2,000 in a calendar year to a nonresident public speaker
• You paid less than $600 in a calendar year to a nonresident entertainer or entertainment entity
• You receive a completed Form MWR, Reciprocity Exemption/Affidavit of Residency, from a Michigan or North Dakota entertainer or entertainment entity

If you (a promoter) hire a nonresident entertainer, file and pay the tax as follows:

You must:

• Provide the promoter a completed federal Form W-9 (or Form MWR, Reciprocity Exemption/Affidavit of Residency, if you are a Michigan or North Dakota resident).
• Report your Minnesota earnings for the previous year on Form ETR, Nonresident Entertainer Tax Return, by April 15. Do not file Form ETR if you provided the promoter Form MWR

Entertainers are individuals who perform acts in Minnesota that amuse, entertain, or inform. Entertainers include – but are not limited to – musicians, singers, dancers, comedians, actors, athletes, and public speakers.

This definition also applies to “entertainment entities,” which include:

• An independent contractor paid for providing entertainment
• A partnership paid for entertainment provided by entertainers who are partners
• A corporation (including subchapter S) paid for entertainment provided by entertainers who are shareholders