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Performer Tax

What is Performer Tax?

Since 2006, Massachusetts requires tax withholding on certain service payments to performers or performing entities when the performance is held inside Massachusetts.

Who is affected by the tax?

Any individual or entity who earn income connected with a Massachusetts performance, whether the performances are of an athletic, entertainment, or educational nature, are subject to Massachusetts personal income tax on that income.

Any individual or entity who who earn income connected with Massachusetts for performances, whether those performances are of an athletic, entertainment, or educational nature, may be subject to withholding on that income.

A performer may be an athlete, a paid entertainer, or a speaker. An athlete is any sports figure who is paid for competing, demonstrating, making a public appearance, or endorsing merchandise. An entertainer or speaker may be an actor, singer, musician, dancer, circus performer, comedian, celebrity, or a public speaker or lecturer. Included as performers are individuals paid to further an athlete, entertainer, or speaker’s performance, such as a coach, trainer, or crew member.

 

When does Harvard University withhold taxes?

In Massachusetts, taxes are withheld when:

  • The individual or entity earns >$5,000 in a calendar year at Harvard University for the same type of service.
  • Tax review and withholding is based on the information entered in Buy-to-Pay and object code used.
    • It is important to use the correct object code and note the location of the activity (where the service is being performed) in order to be classified correctly in B2P. If an individual or entity is not located in Massachusetts when they perform the activity, they are not subject to the Massachusetts performer tax (though they may be liable for other taxes based on their location and immigration status).
  • These service payments may be an honorarium or a negotiated amount. Regardless of payment type, all are considered income and may be subject to the Massachusetts Performer Tax.

Exemptions

The individual or entity would be exempt only if:

  • The individual or entity is not located in Massachusetts when they perform the activity and object code 8691 is used (though they may be liable for other taxes based on their location and immigration status).
  • They have submitted certain tax forms to the Massachusetts Department of Revenue 10 days prior to the performance, AND submitted an attestation form to Harvard, and been approved for reduction or waiver of withholding by the state.

Performer Tax Collection Process at Harvard University

Resources


Harvard University's Performer Tax Information

Massachusetts Performers Tax Guides

Links to Forms