If you hire a nonresident entertainer or entertainment entity to perform in Minnesota, they must provide you with a properly completed federal Form W-9.
An individual must provide their Social Security Number and full address on Form W-9.
An entertainment entity must provide its Federal Tax Identification Number (FEIN) and full address on Form W-9. Do not accept an agent’s name or address.
Backup Withholding
Minnesota follows the federal provisions for backup withholding on payments for personal services. Personal services include any work performed for your business by anyone who is not your employee.
If an individual or entertainment entity fails to provide you a Social Security Number or tax ID number, you must withhold 9.85% state tax from any payments made to them.
For details on Minnesota backup withholding, see the Minnesota Income Tax Withholding Instruction Booklet. For details on federal backup withholding, see IRS Publication 15 (Circular E) and Publication 1281.
Form ETD, Promoter’s Deposit Form
Complete Form ETD, Promoter’s Deposit Form, to report the gross compensation subject to the 2% nonresident entertainer withholding tax. The form and tax deposit are due the last day of the month following the month of the performance.
If you fail to withhold nonresident entertainer tax when required, you will be responsible for any tax, penalties, and interest due.
Deposit ElectronicallyTo make your nonresident entertainer withholding tax deposits electronically, log in to our e-Services system and select your Non-Res Entertainer - Promoter account. Under the I Want To menu, select Manage payments.
While you may deposit electronically, you must still mail Form ETD to the department. Use the address provided at the bottom of the form.
Form 1099-NEC
By January 31 of each year, give a federal Form 1099-NEC to every nonresident entertainer and entertainment entity to whom you paid $600 or more - or to a nonresident public speaker to whom you paid $2,000 or more - in total compensation during the previous year.
When completing Form 1099-NEC, enter the total compensation paid to the entertainer in box 1 (nonemployee compensation). Enter “MN” in box 6 (state) and the amount of nonresident entertainer tax withheld in box 5.
Note: Although you may not be required to provide Form 1099-NEC to a corporation for federal tax purposes, you must provide the form to the corporation for Minnesota tax purposes. Write “For Minnesota Use Only” across the top.
Form ETA, Promoter’s Annual Reconciliation
By January 31 of each year, you must complete and submit Form ETA to Revenue to reconcile your deposits made to the actual tax withheld. Attach a copy of Form 1099-NEC for each nonresident entertainment entity or entertainer hired during the year who was paid $600 or more or nonresident public speaker who was paid $2,000 or more.
You must file a return even if you made all the deposits and no additional tax is due.
Deposit Electronically
If your completed Form ETA indicates you owe additional tax, you can deposit the tax electronically. To do so, log in to e-Services. Select your Non-Res Entertainer - Promoter account. Under the I Want To menu, select Manage payments.
Even though you may deposit electronically, you must still mail your completed Form ETA to Revenue. Use the address provided at the bottom of the form.