You must withhold 20% from all payments made to performing artists and send the withheld amounts to us with your other withholding amounts.
There are exceptions to this including if:
Disregard any cents when calculating the amount to withhold if:
End of attention
- the payment is not in whole dollars
- the withholding amount is not in whole dollars.
You engage an actor to perform in a TV commercial and a payment of $7,523.75 will be made based on the numbers of hours it took to shoot the commercial. You must withhold at the rate of 20% from the payment, which is $1,504 (that is, $7523 x 0.20, disregarding any cents in the payment amount and in the withholding result).
The individual will receive a net payment of $6,019.75 and an amount of $1,504 is withheld and sent to us.