Tag Archives: traveling musician

Organizing, Traveling Musician

AFM Updates “ Road Gig ” Assistance Policy

When musicians travel to perform they face a host of challenges—from transporting and setting up gear in a new space, to finding a great late-night eating spot, to getting their instruments across a border or in the cabin of an airplane. The last thing any traveling group wants to worry about is getting “stiffed” on a gig.

If that ever does happen, though, the AFM offers help through “Road Gig,” an AFM policy to assist traveling musicians in the event of contract defaults. But what exactly is Road Gig?

First, let’s talk about what it isn’t. Road Gig isn’t roadside assistance, help at the border with a missing visa or passport, nor help in the event of stolen instruments or equipment (instrument insurance is offered through Mercer in the US and HUB/Intact in Canada). It is assistance with contract enforcement, in cases where a venue or purchaser defaults on payment.

Qualifications

The AFM will assist with collecting on defaulted contracts, when the following criteria are in place:

  • The claim is for a traveling engagement.
  • The engagement is covered by a written AFM contract (for US engagements only, other written contracts may also be accepted).
  • The contract must have been filed with the appropriate union local, and must meet minimum scale.
  • Each instrumentalist and member vocalist who performed/would have performed, must be a member in good standing at the time the engagement was scheduled/performed.

The policy does not apply in cases where the venue/establishment is covered by an existing AFM Collective Bargaining Agreement, or in cases where musicians are acting as a backup unit for a traveling “name” artist/act.

Making a Claim

Claims can be made by calling 1-800-ROADGIG in the US, or 1-800-INFOFED in Canada. Claims can also be made via e-mail, to roadgig@afm.org. Any calls or e-mails received after normal business hours will be responded to on the next business day. Claimants should include a copy of the defaulted engagement contract, and all other pertinent information, such as venue and purchaser details, in their claims. Upon reviewing all this, the AFM will determine the appropriate course of action, and do everything it can to effect an equitable resolution to the claim.

Enforcement and Collections

When claims are made, the AFM’s Touring, Theatre, Booking and Immigration Division will determine how best to pursue the claim. This usually begins with an official letter to the purchaser/venue to demand payment. If there is no immediate resolution, the AFM will seek authorization from claimants to pursue a legal collection process. At a minimum, the AFM may elect to pay musicians the Traveling Scale, at $150 for leader and $100 for side musician, for the defaulted gig.

When it comes to road gigs, the AFM isn’t going to rush in and change a flat tire or keep a restaurant open past midnight. But we can help our AFM traveling members from being left out in the cold, when it comes to their gig contracts

Resources, Traveling Musician

Time to Think About Tax Refunds

by Robert Baird, President Baird Artists Management (BAM!)

robert-baird

It’s a new year and it’s time to start thinking about getting a refund of taxes withheld in a foreign country by filing a nonresident tax return.

Dear Crossing Borders,

To file taxes in the US to apply for a refund, what kind of paperwork do we need to ask promoters for? Should we be receiving copies of the forms they will be sending to the IRS? It’s my understanding that we should receive a notice from the IRS early in 2015, which will summarize the total amount that we’ve had withheld over the course of 2014. Is that correct?

First of all, it is a good idea to file a nonresident tax return if and when you work in another country. In fact, it’s the only way to get a refund of taxes that may have been withheld. We will deal with the requirements for the US and Canada separately.

United States

In the US, there is no requirement to file a nonresident tax return unless tax is owing. For work done in the US, you should receive a Form 1099 from whoever engaged you to perform. The IRS will not send you a summary of the amounts withheld; it is your responsibility to file for a refund of taxes withheld. The 1099s should be attached to your US tax return.

The US tax return for nonresidents is either a Form 1040-NR or a Form 1040-NR-EZ. If you wish to claim a refund of taxes that were withheld, you need to file a Form 1040NR. However, you do not need to file Form 1040NR if:

1) Your only U.S. trade or business was the performance of personal services; and

2) Your wages were less than $3,900; and

3) You have no other need to file a return to claim a refund of over-withheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty.

The Form 1040NR-EZ can be used if income from US sources is wages, salaries, and tips, refunds of state and local income taxes, and scholarship or fellowship grants. In addition, you may have to file a Form 8833 to claim certain Tax Treaty rights.

All nonresident tax filings go to Department of the Treasury, Internal Revenue Service, Austin, TX  73301-0215. In order to file a nonresident US tax return you will need to have an Individual Tax Identification Number (ITIN).

Canada

You are required to file a nonresident tax return if you owe tax, if you are requested to by Revenue Tax RefundsCanada, if you wish to claim a refund, or if you were granted a Tax Waiver. Not only is there a stiff penalty for failure to file a return, but arrears interest adds insult to injury, as it were. And, if you applied for and were granted a waiver in Canada, then a tax filing is required before further waivers will be considered.

For individuals, this means the filing of a T-1 Non-Resident return with a Schedule A Statement of World Income attached, along with any T4A-NR slips you received from Canadian venues. You will need to apply for an Individual Tax Number (ITN) when you file.

For businesses, you must file a T2 Non-resident return along with certain Schedules, a T4A-NR Summary (if you issued any T4A-NR slips to employees or subcontractors) and any T4A-NR slips you may have received. Businesses also need to apply for a Business Number for:

  • goods and services tax/harmonized sales tax (GST/HST);
  • payroll;
  • import/export; or
  • corporation income tax.

For both individuals and businesses in Canada, you can appoint a representative who will deal with Revenue Canada on your behalf and many nonresidents choose to do this, rather than have to deal with the culture and regulations of a foreign country.

All nonresident matters in Canada are dealt with in Ottawa. You can reach the International Tax and Non-resident Section by calling toll-free 1-800-959-8281 (individuals) or 1-800-959-5525 (businesses) and all nonresident filings go to International Tax Services, Revenue Canada, Post Office Box 9769, Station T, Ottawa ON  K1G 3Y4 CANADA.

Dealing with taxation is difficult enough in your own country, but performers should realize that keeping tax filings up to date in a foreign country just makes good business sense. Get your paperwork in order early and remember that the deadline for nonresident filings in both the US and Canada is June 15.

I welcome your questions and concerns. Please write to me at: robert@bairdartists.com. While I cannot answer every question I receive in this column, I will feature as many as I can and I promise to answer each and every e-mail I receive.

Officer Columns, President's Message

Final Rules for Musical Instrument Air Travel Released by USDOT

I am pleased to announce that on December 30, 2014 the United States Department of Transportation released the long awaited final administrative rule which fully implements section 403 of the FAA Reauthorization Act of 2012 – the law authorizing musical instruments as carry-on baggage onboard US air carriers.  This historic accomplishment was led by your Union and made possible through efforts by Members of Congress who are longtime AFM allies, and officers and rank and file members of Local 161-710, Washington, DC.  We were also assisted by the Department of Professional Employees, AFL-CIO and by many of our music industry partners.

Continue reading →

Traveling Musician

Avoid Border-Crossing Gear Glitches with an ATA Carnet

by Anya Craig, Membership Services Administrator, Canadian Federation of Musicians

It’s the stuff of nightmares for the travelling musician: you’re headed out of the country for a big show, your precious instrument in hand, but when you get to the border, you’re gruffly told that you can’t bring your gear across—not without a bunch of hassle and some hefty fees, if at all!

Performing outside of Canada can be a headache; securing work permits and negotiating with purchasers abroad isn’t always a picnic. The last thing a musician needs, after wading through the process, is to be barred from entering your destination country with your gear.

This sort of gear-related border issue is becoming more common, unfortunately, and although veteran border-crossers know to bring a detailed manifest of all their instruments and accessories, some border agents will only accept one kind of gear documentation: the ATA carnet.

The ATA carnet is an internationally recognized customs document that acts as a sort of passport for all your professional tools. It is your best defense against the stickiest of border officers, who are typically trained to assume that anyone entering their country with gear intends to sell it and abscond with the profits. The carnet proves that your instruments and gear are the tools of your trade, and that they will be brought back to Canada with you after your gigs.

The ATA carnet program was established in 1961 by the World Customs Organization, and is accepted in 71 countries worldwide, including the US. Here in Canada, the carnet is issued by the Canadian Chamber of Commerce. When you travel with a carnet, your goods are inspected every time you leave or enter a country and you escape the potential hassle of having to pay duties or temporary importation bonds on your professional gear. In some cases, travellers have been denied entry until a valid carnet could be produced.

Getting the carnet is not particularly difficult or time-consuming as long as you are able to provide detailed information about the instruments and gear you intend to travel with. Along with the application, certain fees are required, which are based on the total value of your tools. The Chamber of Commerce asks applicants to allow five business days for processing, but three-day or even same-day service can be had for an extra fee. After the carnet is issued, it must be validated by Canadian customs, which can be done any time prior to your travel date or on the day you cross the border—just be sure to leave home extra early if you choose the latter option. Once you’ve got the carnet, it’s valid for a year. After a year, you will need to reapply.

You may grumble at the prospect of having to fill out yet another application in order to perform outside of Canada. You may wonder if an ATA carnet is really necessary, especially if you’ve taken your gear across borders successfully without one. Your best bet, if you’re planning on travelling across the border, is to call up the foreign port of entry where you intend to enter and ask them what their policy is. Different border stations have different ways of dealing with gear and goods. If the agent you speak to is not clear about their expectations, or if you’re in any doubt, obtaining a carnet is your best option to avoid disappointment. Keep in mind that the border agent you encounter when crossing may not abide by what you were told over the phone by another officer; another agent may insist on a carnet, regardless of what their colleague told you.

However you choose to document your gear when crossing the border, make sure you’re confident in your choice, and err on the side of caution. Doing paperwork and paying fees may be a hassle, but it’s vastly preferable to missing your gigs because it was barred entry, or spending hours at customs tied up in red tape. As a musician, you’ve got better things to do!

If you’re interested in obtaining an ATA carnet for future travel, visit the Canadian Chamber of Commerce’s Carnet Services site: http://www.chamber.ca/carnet. A list of countries that accept the ATA carnet can be found at: http://www.chamber.ca/carnet/carnet-countries/. To get the contact information for US ports of entry, visit the US Customs and Border Protection site:  http://www.cbp.gov/contact/ports.

Traveling Musician

Dealing with Foreign Sales Tax

by Robert Baird, President Baird Artists Management (BAM!)

My column “Getting Merchandise Across Borders” (October 2014 IM) prompted some questions on dealing with the sale of merchandise once you’ve gotten it into the country. We all know about “under-the-table” sales, but we should also be aware of the regulations regarding tax on merchandise—sales tax or “use” tax. All jurisdictions have regulations regarding the collection and remission of sales tax and you need to know what is required of a nonresident federally, as well as in each state, province, and even in cities. Collecting and remitting taxes are the responsibilities of vendors, so as a self-employed musician, you need to be aware of tax regulations and how to deal with them.

Dear Crossing Borders,

If an artist is selling promotional merchandise at his shows, does he need to charge tax to the buyers? If so, are the regulations different if the merchandise was produced in the United States, as opposed to Canada. Are there any special rules to follow when claiming income from selling the merchandise on your taxes?
Taxed to the Max

As Benjamin Franklin once wrote: “In this world nothing can be said to be certain, except death and taxes.” And for any musician, especially a travelling musician, trying to sell merchandise, finding out about taxes can be daunting. The general rule is that sales tax must be collected on every sale to the ultimate consumer. However, each jurisdiction is different and there may be no sales tax applicable, or there may be exceptions for nonresidents.

First of all, you must determine if there is a sales tax. In the US, there is no general national sales tax. Sales tax is levied at the state (or lower) level. There are five states that do not charge sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Unfortunately, some localities within these states may charge sales tax and you may have to do a little research to check if there is an applicable local tax. Information on state sales tax can also be found by looking at each state’s website. You can find links at: http://www.usa.gov/Agencies/State-and-Territories.shtml.

In Canada, there are two levels of sales tax: federal and provincial. The federal and provincial sales tax rates are combined (harmonized) as HST in Ontario, New Brunswick, and Newfoundland and Labrador (13%), Prince Edward Island (14%), and Nova Scotia (15%). In the rest of Canada, the federal sales tax (GST of 5%) and the provincial sales tax (PST) are collected separately. Registration for GST/HST is voluntary and, depending upon your level of business activity in selling merchandise, you may want to consider registering.

Secondly, you have to determine if you are required to collect sales tax at all as a nonresident. In most jurisdictions in the US, out-of-state sellers do not need to collect sales tax, unless they have a “nexus” or presence in that state. A nexus means that you have a store location in a state, inventory held within that state, or employees or affiliates who live or work in that jurisdiction, visit customers, or attend trade shows. If you have an established nexus, you do need to register as a retailer and get set up to collect sales tax.

However, nexus rules vary from state to state and some states or areas may require that you collect sales tax without a nexus. If the vendor has no nexus within the jurisdiction then “use” tax (self-assessed sales tax) becomes the responsibility of the consumer/purchaser. However, some jurisdictions may require the vendor to collect and remit this tax.

In Canada, if a nonresident vendor has no business presence in the country, then the collection of HST/GST is not required. However, several provinces recommend that nonresident vendors register voluntarily, either provincially (PST), federally (GST), or both (HST). More information can be found at: http://www.cra-arc.gc.ca/E/pub/gp/rc4027/.

Rather than ignoring the issue, musicians need to research sales tax and deal with the specific requirements in the jurisdictions in which they will be selling merchandise. If you are selling merchandise at a trade show, or in connection with a performance at a venue or event, the trade show, venue administration, or event organizer should be able to assist you in doing this. Knowing about sales tax and how to deal with it are two necessary skills for artists crossing borders.

Finally, to answer the other questions posed: sales tax regulations are the same whether the merchandise was produced in the US or in Canada, and there are no special rules to follow when claiming income from selling merchandise, except one: do claim the income.