Coordination With Other Withholding Requirements

(a) Employer Production Company Withholding. The830 CMR 62B.2.3 withholding requirements apply to a payment made by a production company to a loan-out or an individual independent contractor. Wages and other payments made by a production company that is an employer to its employee are governed by the employer withholding requirements as explained in 830 CMR 62B.2.1. Nothing in this regulation limits the requirement that a production company must register and withhold Massachusetts income tax on employee wages subject to tax in Massachusetts.

(b) Loan-Out Withholding. When a loan-out receives a payment from a production company on which there has been withholding under the withholding requirements of 830 CMR 62B.2.3, it does not have to further withhold under the production company withholding rules set forth in 830 CMR 62B.2.3, the employer withholding rules set forth in 830 CMR 62B.2.1 or the pass-through entity withholding rules set forth in 830 CMR 62B.2.2 as to any paid or allocated amount to an individual to the extent such payment or allocation relates to the same services previously withheld upon.

Example. Same facts as the example in 830 CMR 62B.2.3(4)(a), e.g., the production company makes a $4 million payment to the loan-out, but only withholds on $3 million. The loan-out and the individual actor do not have to further withhold on the $3 million payment to the loan-out for the services of the leading actor in the production. However, any withholding obligation imposed by M.G.L. c. 62B and the regulations thereunder, on the loan-out and the individual actor, is effective for the remaining $1 million of the payment to the loan-out, as well as any related interest and penalties for failure to withhold.

(c) Performer Withholding . The performer withholding requirements and waivers explained in 830 CMR 62B.2.1 do not apply to a production that qualifies and submits an application for the motion picture production company credit as defined and allowed under M.G.L. c. 62, §6(l)(1) or M.G.L. c. 63, § 38X. A production qualifying for the motion picture production company credit is generally defined as a film, video, digital media project or a television series. The performer withholding requirements and waivers explained in 830 CMR 62B.2.1 apply to live performances including, but not limited to, live entertainment, public appearances and athletic competitions.

REGULATORY AUTHORITY 830 CMR 62B.2.3: M.G.L. c. 14, § 6(1); M.G.L. c. 62C, § 3; M.G.L. c. 62B.

REGULATORY HISTORY Date of Promulgation: 6/5/26

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