
Connecticut venues, such as SCSU, that contract to pay athletes, entertainers or performing entities for services performed in CT are considered designated withholding agents by the Department of Revenue Services (DRS). As such, SCSU is required to withhold income tax at the source of payment unless the Department of Revenue Services grants a request for reduced withholding. The current withholding rate is 6.99% of the gross payment to Athletes & Entertainers. Please visit DRS to verify the current rate and review the most recent Policy Statement regarding Income Tax Withholding for Athletes or Entertainers, which further explains these requirements.
Performer - an athlete, including but not limited to a wrestler, boxer, golfer, tennis player, or other athlete as well as a referee or trainer. An entertainer includes but is not limited to an actor, singer, musician, dancer, circus performer, comedian, public speaker**, writer, director, set designer or member of a sound or light crew.
** Public speaker does not include a speaker who 1) is engaged as part of a course offered by SCSU, or 2) is part of an educational or academic conference, seminar, or symposium sponsored by SCSU; and is paid $5,000 or less.
Performing Entity - any corporation, partnership, limited partnership, or limited liability company that employs, engages or is composed of one or more performers.
Contracts that Prohibit Withholding - Conn. Agencies Regs. 12-705(b)-1 superseeds any provision in a performer's or performing entity's contract that provides that Connecticut income tax should not be withheld. Therefore CT income tax must still be withheld from a payment to the performer or performing entity for the engagement.
A performer or performing entity may request a waiver of withholding by completing form CT-590 in the follow cases:
The performer or performing entity may request reduced withholding when they believe that the withholding is likely to exceed their CT income tax liability.
A performer or performing entity may request reduced withholding by completing form CT-588 which must be submitted to DRS.
Forms must be received by DRS at least 14 calendar days before the date of the performance. Forms may be sent by:
DRS will grant or deny the request and will issue notice of its decision by issuing CT-595 - to SCSU Accounts Payable with a copy to the performer or performing entity. In the case of reduced withholding, DRS will indicate the amount to be withheld. If notification is not received by SCSU before the date that payment is to be made, SCSU must withhold at the current withholding rate of 6.99%. Performers or performing entities may call the DRS Entertainment Withholding Section at (860) 297-5925 for information on the status of their request.