Policy on Payments to Athletes and Entertainers

The State of Connecticut requires Payers/Employers to withhold Connecticut State income tax on non-CT resident "Performers" for the income derived from Connecticut sources. Please see the State of CT Policy Statement for more detailed information.  Performers include actors, singers, musicians, dancers, writers, directors, set designers and supporting acts crews (i.e. lighting). Other payments subject to this withholding include payments to public speakers, athletes, trainers and referees. Independent Contractors, such as bands, orchestras, plays, dance teams and other similar performing entities are also subject to these withholding rules.

Withholding is also required on payments to agents and third parties on behalf of the Performer or Performing entity.

Exceptions to withholding:

  1. The Performer is a Connecticut resident, employee of the designated withholding agent, or continuously maintains, occupies, and uses an office in Connecticut.  If applicable, a Performer may complete and submit Form CT-590-Request for Waiver of Withholding to Wesleyan to waive CT income tax withholding.  The completed and signed Form CT-590 must be attached to the Accounts Payable payment voucher.     

  2. The amount of any individual payment derived from Connecticut sources is $1,000 or less.
  3. The amount of all payments to a non-CT resident Performer within a calendar year is expected not to exceed $3,000. If applicable, a Performer may complete and submit Form CT-590-Request for Waiver of Withholding to the Connecticut Department of Revenue Services to request a waiver of CT income tax withholding.  The State of CT decision/approval letter must be attached to the Accounts Payable payment voucher. 

  4. Performer receives reduced withholding, or a waiver Form CT-595, from the Connecticut DRS.  Waiver must be attached to Accounts Payable payment voucher. 

  5. The services are not performed in Connecticut.  Affidavit for Location of Services Performed must be attached to the Accounts Payable payment voucher. 

  6. Speakers and lecturers engaging in a course offered by the educational institution, or as part of an educational or academic conference, seminar, or symposium sponsored by the educational institution, and the payment for the engagement is $5,000 or less.

The current effective tax withholding rate is 6.99%.

Under certain circumstances, the State of Connecticut may issue a waiver or reduce the withholding rate. To apply for a reduced rate or waiver, the performing entity must file a reduced withholding request (Form CT-588) with the Department of Revenue Services. The State requires up to 14 days to process requests and Wesleyan is required to withhold at the 6.99% until the waiver has been approved.

Procedure for withholding and reporting:

  • The Department/Office contracting for the Performer’s Services must complete an Accounts Payable voucher and submit it to the Finance Office.

  • The University will issue a form 1099-Misc. income statement at the end of the calendar year.

  • The Performer must submit a copy of Form CT-592 with his or her Connecticut income tax return.

Failure to comply with this policy will result in the originating department being charged for the applicable tax withholding on the contracted fee and any interest, penalties and tax gross up that may accrue.

*Note - Federal Form 1099-Misc is required by the State of Connecticut for withholding on Corporations for CT A&E tax. 

Revised April 2017