DRS: 12-705(b)-1, Professional athletes and entertainers - Amended Effective 3/8/06

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications   111 Phoenix Avenue Enfield, CT 06082 colp@jud.state.ct.us Copies of DRS forms and publications are available at http://www.ct.gov/drs 

Amended and Effective as of 3/8/06 

Old Version

Sec. 12-705(b)-1. Professional athletes and entertainers

Conn. Agencies Regs. 12-705(b)-1. Professional athletes and entertainers. 

(a)

(1) Any person which maintains an office or transacts business within this state and during a calendar year pays compensation, in cash or otherwise, for personal services as an entertainer or professional athlete, in connection with a performance or athletic event, to an entertainer or professional athlete who is not considered an employee for federal withholding tax purposes and who is

(A) a resident individual, shall withhold Connecticut income tax from such compensation, whether or not the performance or athletic event is held within Connecticut.

(B) a nonresident individual, shall withhold Connecticut income tax from the portion of such compensation that is derived from or connected with sources within this state.

(2) The value of noncash prizes and awards shall be their fair market value. As used in this section, compensation paid for personal services in a performance includes, but is not limited to, compensation paid to actors, singers, musicians, dancers circus performers, writers, directors, set designers, and any person appearing on television, radio, the stage, in a night club performance or hotel show and any person whose performance is recorded or filmed, and compensation paid for personal services in an athletic event includes, but is not limited to, compensation paid to referees and trainers.

(b) Even though a person whose services are covered by this section is not considered an employee for federal withholding tax purposes, such person shall be treated as an employee, and the person paying compensation to such person, or to the agent thereof, shall be treated as an employer, for purposes of this Part. The person treated as an employer shall

(1) register for Connecticut income tax withholding purposes by filing a Form REG-1 (Application for Tax Registration Number) with the Department,

(2) deduct and withhold Connecticut income tax on the compensation at the highest marginal rate,

(3) depending on whether the person treated as an employer is a weekly remitter, monthly remitter or quarterly remitter, as those terms are used in section 12-707 of the Connecticut General Statutes, pay over the deducted and withheld Connecticut income tax to the Department on or before the date specified in subparagraph (B) of subdivision (3), (4) or (5) of subsection (b) of said section 12-707, and, if not required to pay over such tax by electronic funds transfer pursuant to chapter 228g of the Connecticut General Statutes and the regulations adopted thereunder, file Form CT-8109 with such payment,

(4) file with the Department for each calendar year a Form CT-945 on or before the last day of January of the next succeeding calendar year, provided, Form CT-945 may be filed on or before the tenth day of February of the next succeeding calendar year if timely deposits of Connecticut withholding tax have been made in full payment of such taxes due for such year,

(5) show the amount of Connecticut income tax deducted and withheld on the Federal Form 1099-MISC that is to be furnished to each person treated as an employee under this section by the person treated as an employer under this section on or before the last day of January of the next succeeding calendar year, and

(6) file with the Department a Form CT-1096, with a copy of each Federal Form 1099-MISC, on or before the last day of February of the next succeeding calendar year.

(Adopted eff. 11-18-94 and applicable to income tax that is required by these sections to be withheld, and to informational returns that are required by these sections to be filed for calendar years commencing on or after 1-1-95; revised eff. 8-3-01; 7-3-03 and applicable to taxable years beginning on or after 1-1-03; 3-8-06.)