Nonresident Entertainers

What is included in the gross contract dollar amount?

The gross contract dollar amount is the total compensation without any expenses deducted. For example: If a venue charges the entertainer for the use of its facilities, the charge is not deducted before the 2 percent withholding.

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Are venues required to withhold 2 percent on presentations by guest speakers?

The 2 percent withholding is not required on presentations for professional or technical education.

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Who is considered a nonresident entertainer?

Individuals, partnerships and corporations not residing in Missouri who entertain other people for compensation by performing any vocal, instrumental, musical, comedy, dramatic, dance or other performance before a live audience. This includes persons traveling with and performing services on behalf of a nonresident entertainer who receive compensation, such as a setup crew.

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When does a venue give the entertainer a copy of Form MO-2ENT?

A copy of Form MO-2ENT may be given to the nonresident entertainer when the compensation is paid or when Form MO-1ENT is submitted to the Department.

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How does the entertainer entity split the withholding between various employees (example: members of a band)?

Missouri requires 2 percent of the total compensation from the performance and does not require you to split the withholding between employees. However, if one member of the entertainer group, such as a band member, files a Missouri individual income tax return, the withholding must be prorated among the band members and other paid members. The entertainer entity (the band) must determine the correct amount for each individual member to claim. A corporation may claim the entire withholding credit on its corporate return. The withholdings may be claimed only once, either by the corporation or the individual.

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How do nonresident entertainers claim the money withheld by the venue?

Individual nonresident entertainers may claim their prorated share of the withholding on line 35 of the individual income tax Form MO-1040. Corporations may claim the withholding on line 18 of Form MO-1120 for corporations. The nonresident entertainer must also attach copies of Form MO-2ENT showing the withholding. (See the question above if the withholding needs to be split.)

NOTE: Missouri does not require nonresident entertainers to file income tax returns if all the venues at which they have performed have withheld the 2 percent and the nonresident entertainers have no other Missouri source income.

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Who is responsible for withholding when the venue is paid a rental fee and the booking agent/promoter pays the entertainer?

The venue must collect and remit the 2 percent withholding on the total compensation when the agent/promoter is a nonresident. The 2 percent must be withheld from the agent/promoter’s compensation as well. If the booking agent/promoter is a Missouri resident, the withholding may be remitted to the Department by the resident agent or promoter.

The venue must submit a list of any resident agent/promoter renting its facility for a performance. (Include entertainer's name.) The listing must be sent quarterly to the Missouri Department of Revenue, Nexus Section, P.O. Box 295, Jefferson City, Missouri 65105-0295.

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What happens if a venue does not withhold?

The venue may be issued a non-filer assessment or the nonresident entertainer(s) will be subject to the transient employer law. The entertainer(s) must then register, post a bond and file withholding tax returns with the Department of Revenue.

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Are IRS 501(c)3 venues required to remit the 2 percent withholding on nonresident entertainers?

A 501(c)3 venue that pays a nonresident entertainer to perform is not required to remit the 2 percent withholding if the venue does not receive any money as a result of the entertainer's performance.

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Are venues required to withhold 2 percent on IRS 501(c)3 not-for-profit corporations?

Yes, the venue is required to withhold 2 percent. The not-for-profit corporation should pass the 2 percent withheld down to the employee.

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Is a foreign entertainer exempt from the 2 percent withholding on nonresident entertainers?

Foreign entertainers are exempt from the 2 percent withholding if they are exempt from federal income tax.

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Does a venue have to withhold 2 percent if the entertainer is paid $300 or less for a performance?

The venue must withhold 2 percent if the entertainer is paid more than $300 for all performances. For example, if an entertainer performs two nights and gets paid $250 per performance for a total of $500 the 2 percent is still required.

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Is there a penalty for filing the MO-1ENT and MO-2ENT late?

Yes, the venue will be charged penalty and interest if the MO-1ENT and the MO-2ENT are not filed by the due date.

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