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ÁÔÆæÖØ¿ÚÊÓƵ State University doing business with any non-resident national on U.S. soil is required by U.S. tax laws to collect information to determine their tax status. In some cases the university is required to withhold 30% of the payment and remit the funds to the U.S. Internal Revenue Service.

The university uses GLACIER, a secure on-line tax compliance software system that collects tax related information from non-resident nationals receiving funds from ÁÔÆæÖØ¿ÚÊÓƵ State University. All non-resident nationals receiving funds from the university must have a GLACIER tax record. GLACIER determines residency status and tax treaty eligibility for the foreign individual.

Payments to non-resident nationals that require a GLACIER tax record are as follows:

• Artist/Performance fee
• Consulting fee
• Guest speaker fee/honorarium
• Prize
• Visiting Scholar Payments
• Other Income

Pursuant to Massachusetts General Law (MGL) Chapter 262, Subsection 21, of the Acts of 2004, ÁÔÆæÖØ¿ÚÊÓƵ State University is required to notify performers and performing entities that Massachusetts state withholding taxes of 5% (effective January 1, 2023) will be withheld if payments to the performer or performing entity exceed the $5,000 threshold established by the Massachusetts Department of Revenue (DOR) for each calendar year.  Tax withholding shall occur on Gross Payments made to a performer or a performing entity when the total payments by one payer to a single social security number or federal identification number exceed $5,000 for performances during one calendar year, unless a reduction or waiver of withholding is approved by the Massachusetts DOR.

Please note that the Massachusetts Department of Revenue may direct the university, acting as a performer withholding agent, to withhold State taxes even if the performer or performing entity has not reached the $5,000 threshold.

Categories of Performers and Performing Entities subject to the withholding tax include the following:

• Athletes who are paid for
  • Competing
  • Demonstrating or
  • Endorsing merchandise
• Entertainers
  • Actors
  • Singers
  • Musicians
  • Dancers
  • Circus Performers
  • Comedians
  • Celebrities
• Speakers or Lecturers
• Crew members, coaches and trainers of athletes, entertainers, speakers or lecturers

A reduction or exemption of the withholding can be obtained by the Commonwealth of Massachusetts each calendar year by filing a request to the Massachusetts Department of Revenue.  A reduction of withholding can be requested by the performer/performing entity by filing Form PWH-RW up to ten (10) days prior to the event.  A waiver of withholding can be requested by the performer/performing entity by filing Form PWH-WW up to ten (10) days prior to the event.

If possible, the Massachusetts DOR approval of a withholding reduction or waiver should be attached to the State Standard Contract form.  In the event that the reduction or waiver of withholding form is not available when the Contract is executed, these forms should be remitted to ÁÔÆæÖØ¿ÚÊÓƵ State University as soon as possible.

It is the performer/performing entity’s responsibility to request and obtain the appropriate withholding reduction or waiver forms from the Massachusetts Department of Revenue and to remit the forms to ÁÔÆæÖØ¿ÚÊÓƵ State University prior to payment.  Please note that it is not required that the performer/performing entity obtain the withholding reduction or waiver form in the event that a tax withholding is desired.

It is the policy of ÁÔÆæÖØ¿ÚÊÓƵ State University to withhold 5% Massachusetts state taxes on payments greater than $5,000 per calendar year, unless a waiver or reduction of withholding is certified by the Massachusetts Department of Revenue and provided to ÁÔÆæÖØ¿ÚÊÓƵ State University.

To request a reduction or waiver of withholding:

• Download from the Massachusetts Department of Revenue (DOR) website, a Form or
• Send the completed form to the DOR by e-mail, fax or mail
  • Email the form to entertainers@dor.state.ma.us.
  • Fax the form to DOR at (617)887.6589 or
  • Mail the form to DOR at:
    • Bureau of Desk Audit
      Filing Enforcement-Entertainment
      200 Arlington Street, Fourth Floor
      Chelsea, MA 02150
• DOR will then notify the performer or performing entity of the amount to withhold
• Please remit a copy of the Massachusetts DOR approval notification to ÁÔÆæÖØ¿ÚÊÓƵ State University at the  following address:
  • ÁÔÆæÖØ¿ÚÊÓƵ State University
    131 Summer Street
    Boyden Hall, Accounting Office Room 204
    ÁÔÆæÖØ¿ÚÊÓƵ, MA 02325
• If continuing to be a vendor for the university, this annual withholding reduction or waiver forms would need to be re-obtained from the DOR each calendar year by each performer/performing entity

For additional information regarding Performer Withholding standards and exemptions please visit the Massachusetts Department of Revenue website at or call 1.800.392.6089.

For more information regarding tax reporting please contact:

Kristin Hanson
Associate Director, Accounts Payable        
508.531.2007
khanson@bridgew.edu

IMPORTANT:  Generally, the university cannot refund PWH taxes after the taxes have been deposited with the Massachusetts Department of Revenue. Since taxes are deposited soon after the performance has taken place, it is important that the university receive the waiver before the performance takes place. A performing entity eligible for a waiver should apply for it immediately upon signing a contract or making an agreement to perform at the university. Also, it is recommended that the performing entity notify the university that a waiver application is being processed.