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Publication 508

to Wisconsin in the ratio of the paying corporation’s

D. Questions About a Waiver of the Bond or Deposit

Wisconsin gross receipts to its total gross receipts for

Requirement

the year, times the total compensation the corporation

Employers may receive questions from nonresident

pays the entertainer.

entertainers about waiving the requirement to file a

For example, assume a corporation has Wisconsin

bond or deposit because they are exempt from

gross receipts of $100,000 and total gross receipts of

Wisconsin income or franchise taxes. Employers who

$1,000,000 for a taxable year. The corporation pays a

receive such inquiries should forward them to the

nonresident entertainer $50,000 for the year, for

department by any of the methods shown in Part IX.A.

The

department

will

request

any

additional

services performed both in Wisconsin and outside

Wisconsin. No specific amount is allocated for the

information required from the nonresident entertainer

Wisconsin performances. The entertainer must file a

and then issue the nonresident entertainer either a

Wisconsin income tax return, based on Wisconsin

waiver from the surety bond or cash deposit

gross income of $5,000 ($100,000 ÷ $1,000,000 =

requirement, or notification that the entertainer does

not qualify for a waiver.

10%; 10% x $50,000 = $5,000).

If an individual does not receive a Wisconsin income

CAUTION

tax Form 1NPR from the Department of Revenue by

It is important for the employer to retain copies of

the end of the tax year, the person should request the

Part 3 of Form WT-11, or waivers furnished by the

form from the department by any of the methods

entertainer.

shown in Part IX.C.

For persons reporting on a calendar year basis, an

income tax return is due by April 15 following the end

VI. INCOME AND FRANCHISE TAX

of the year.

RETURNS OF NONRESIDENT

ENTERTAINERS

Treatment of Cash Deposits or Amounts Withheld:

If the individual nonresident entertainer made a cash

A. Requirements of Nonresident Individuals to File

deposit or had an amount withheld by an employer (as

Income Tax Returns

explained in Parts IV and V), the amounts deposited

or withheld during the year are allowed as a credit on

Who Must File: Any nonresident

individual

the Wisconsin income tax return. (Caution: The

(including an entertainer) who has Wisconsin gross

amount of the surety bond or premiums paid to

income of $2,000 or more during a taxable year must

acquire the bond may not be claimed as a credit on the

file a Wisconsin income tax return (Form 1NPR -

income tax return.)

nonresident and part-year resident return). Wisconsin

gross income means all income (before deducting

The amount of cash deposited (or the amount withheld

expenses) reportable to Wisconsin that is received in

by an employer) should be entered on Form 1NPR on

the form of money, property, or services.

the line for Wisconsin estimated tax payments. A

person must attach to the Form 1NPR copies of the

For example, an individual nonresident entertainer

receipts (Form WT-11) issued by the department for

who receives $2,000 or more for performing in

cash deposits, and/or by employers for amounts

Wisconsin must file a Wisconsin income tax return,

withheld. These documents are needed to substantiate

even if the individual’s net income after deducting

the amount claimed as a cash deposit or the amount

expenses is less then $2,000.

withheld. If the cash deposits or amounts withheld by

employers exceed the person’s Wisconsin tax liability,

An individual nonresident entertainer who is paid by a

the excess will be refunded to the person as are wage

corporation doing business in Wisconsin, for services

withholding tax overpayments.

performed in Wisconsin, must file a Wisconsin

income tax return if the amount allocable to

Partners

and

Tax-Option

(S)

Corporation

Wisconsin exceeds $2,000 for a taxable year. If the

Shareholders: If an individual is a member of an

amount paid for the services performed in Wisconsin

entertainment partnership, or a shareholder in an

is not a set, definite amount, the entertainer’s total

entertainment corporation that is taxed under

compensation from the corporation must be allocated

Subchapter S of the Internal Revenue Code, the

Publication 508 - Tax Requirements Relating To Nonresident Entertainers - Department Of Revenue Page 8

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