Can a promoter that is responsible for withholding from the compensation paid to an entertainer contract with the venue to withhold the tax?
The Department of Revenue has no objection to a venue satisfying a promoter’s withholding responsibility if the venue is willing to accept that responsibility. However, the promoter is the entity required by law to withhold the tax and could be pursued by the Department of Revenue for collection if the tax is not withheld or is withheld but not remitted to the Department by the venue. A contractual provision between the promoter and venue shifting the responsibility to the venue is not binding on the Department since the Department is not a party to the contract.
Related Questions
- If a venue contracts with a promoter to find an entertainer and the promoter enters into a contract with the performer, is the compensation paid to the promoter by the venue subject to withholding?
- Can a promoter that is responsible for withholding from the compensation paid to an entertainer contract with the venue to withhold the tax?
- Who is responsible for withholding when the venue is paid a rental fee and the booking agent/promoter pays the entertainer?
