Franchise Tax Board

Entertainment Withholding - Frequently asked questions


  1. Who is considered an entertainer?
  2. Who is a withholding agent?
  3. When is a withholding agent required to withhold?
  4. What happens if two entities are requesting to be a withholding agent for the same performance date?
  5. What is the withholding rate?
  6. What types of payments are subject to withholding?
  7. Does withholding relieve entertainers from the requirement to file California tax returns?
  8. How do I receive credit for the withholding taken out of my payment?
  9. As the withholding agent, do I withhold if the entertainer states that they are "tax exempt"?
  10. Is withholding required if the withholding agent has not received Form 594 or Form 595 from the FTB before the performance date or the date the nonresident entertainer is paid?
  11. Is withholding required if the compensation paid to nonresident entertainers is made to their California agents or promoters?
  12. How can I request a reduced rate?
  13. Are payments exempt from California tax and not subject to withholding if the payments are exempt from federal tax due to tax treaties?
  14. How can entertainers certify that they are exempt from withholding?
  15. How do we determine whether an entertainer qualifies for a waiver?
  16. What forms should withholding agents use to report and remit withholding?
  1. Who is considered an entertainer?

    An entertainer includes, but is not limited to, actors, singers, band members, orchestra members, dance teams, wrestlers, boxers, and speakers.

    Note: Stage help, lighting crews, etc. are not considered entertainers, however, withholding is required at the statutory 7 percent withholding rate. Refer to Nonresident Withholding Independent Contractor Rent & Royalty Guidelines (FTB Pub. 1023) for more information.


  2. Who is a withholding agent?

    A withholding agent is any person or entity having the control, receipt, custody, disposal, or payment of compensation for services. If necessary, we can identify a withholding agent upon issuance of Form 594, Notice to Withhold Tax at Source.


  3. When is a withholding agent required to withhold?

    An agent is required to withhold from payments made for services performed by a nonresident entertainer, when the total payments for the calendar year are greater than $1,500.


  4. What happens if two entities are requesting to be a withholding agent for the same performance date?

    We evaluate the request and issue a Form 594, Notice to Withhold Tax at Source, to the selected withholding agent. We will issue a Form 595, Notice to Withholding Agent, to the other entity to release it from withholding responsibility.


  5. What is the withholding rate?

    The withholding rate is 7 percent of the gross payments made to nonresident entertainers for services performed in California, unless we have authorized a waiver or reduced withholding rate.


  6. What types of payments are subject to withholding?

    All payments made to entertainers for services performed in California are subject to withholding. These payments include, but are not limited to, guaranteed payments, overages, royalties, and residual payments.


  7. Does withholding relieve entertainers from the requirement to file California tax returns?

    No. Nonresident entertainers must file Form 540NR, California Nonresident or Part Year Resident Income Tax Return, if they meet the filing requirements.


  8. How do I receive credit for the withholding taken out of my payment?

    You must file a California income tax return to claim the credit. If the withholding amount is more than your tax liability, you will receive a refund for the overpayment. If the withholding amount is less than your tax liability, you will owe additional tax.


  9. As the withholding agent, do I withhold if the entertainer states that they are "tax exempt"?

    The withholding agent should withhold if the entertainer does not provide them a completed Form 590, Withholding Exemption Certificate, or IRS Form 501(c) 3. The withholding agent should not withhold if the entertainer provides a completed Form 590 to certify that they are residents of California or an entity not subject to withholding. The Form 590 should be accepted in good faith, and the withholding agent should keep a copy of Form 590.


  10. Is withholding required if the withholding agent has not received Form 594 or Form 595 from the FTB before the performance date or the date the nonresident entertainer is paid?

    Yes. If a withholding agent has not received a Form 594, stating the withholding rate, or a Form 595, by the date of the performance or payment, then withholding at the 7 percent rate is required.


  11. Is withholding required if the compensation paid to nonresident entertainers is made to their California agents or promoters?

    Yes. Withholding is required even though the payment is not made directly to the nonresident entertainer. The entertainer is required to report the compensation for the performance and is entitled to the entire withholding credit.


  12. How can I request a reduced rate?

    Withhold Agent - Fax a completed Form 4089, Notification of Performance Withholding for Nonresident Entertainers, to us at least 10 days before the performance date. If we receive the request within 10 days of the performance date, Form 4089 may not be processed timely and 7 percent withholding may be required.

    Entertainer - The nonresident entertainer or representative should submit Form 4080, Nonresident Entertainer Guidelines For Requesting a Withholding Reduction or Waiver, along with all of the information outlined on the form to us 10 days before the performance date.


  13. Are payments exempt from California tax and not subject to withholding if the payments are exempt from federal tax due to tax treaties?


    14. No. California does not conform to federal law relating to income protected by U.S. tax treaties. California source income is subject to withholding. Nonresident aliens are required to report income from their California performances on Form 540NR, California Nonresident or Part-Year Resident Income Tax Return.

  14. How can entertainers certify that they are exempt from withholding?


    15. Entertainers should complete Form 590, Withholding Exemption Certificate and give the completed form to the withholding agent. This form is used to certify that the entertainer is a resident of California or an entity not subject to withholding.

  15. How do we determine whether an entertainer qualifies for a waiver?


    16. Some of the things we consider are:
    • The entertainer's California tax return filing history.
    • If the entertainer is registered with the California Secretary of State and is in good standing.
    • If the entertainer has California tax exempt status.

  16. What forms should withholding agents use to report and remit withholding?


    17. If we sent you Form 594:
    • Complete all applicable parts of the form. Distribute copies C and D to the entertainer. Send copy A to us with the withholding payment by the 20th day of the month following the date of the last performance.

    If we did not send you Form 594:
    • Use Form 592-A, Nonresident Withholding Remittance Statement, to remit the tax withheld. Payments are due by the 20th day of the month that the combined total amounts withheld from all nonresident entertainers exceed $2500.00 for the calendar year.
    • Use Form 592, Nonresident Withholding Annual Return, to report the total amount of tax withheld and remitted on Forms 592-A during the calendar year. Do not include on Form 592 any payments submitted during the year with Form 594. Form 592 is due to us by January 31 of the following year.
    • For each entertainer subject to withholding, use Form 592-B, Nonresident Withholding Tax Statement, to report the amount subject to withholding and the amount withheld for the year.