POLICY:

When contracting with entertainers and speakers for a fee, the PO will inform the contractor of their tax withholding obligations. The University of Wisconsin System Entertainment Contract, Speaker Contract or the University of Wisconsin System Standard Rider details the insurance and withholding requirements.

PROCEDURE:

I. Withholding Obligations (tax liability)

1. Upon receipt of a requisition for contracting with an entertainer or speaker, agent determines purchasing process and proceeds accordingly. Either the UW System Entertainment Contract or the UW System Standard Rider will be required prior to issuance of PO.

1.1 If the entertainer has provided a contract document, agent will add appropriate signature upon receipt of signed rider from the entertainer.

1.2 If no contract, the UW System contract document will be produced and provided to contractor for appropriate signatures before PO is issued.

2. The agent issues the PO (or the PO-ready requisition) to include the order message WDR. NOTE: The WDR message on the PC alerts Accounting Services as to how to process the payment.

WDR Nonresident entertainers and public speakers are required to file a bond or place a security deposit with the Wisconsin Department of Revenue at least two days prior to the date of performance to assure payment of state income taxes if income earned from performances in Wisconsin will exceed $3,200.

If the nonresident entertainer or public speaker does not show proof to the University on each invoice submitted that such bond or security deposit was filed with the Wisconsin Department of Revenue, state law provides that the University shall deduct 6% of the total performance contract price and remit said amount as withheld for state income tax purposes.