Central Withholding Agreement (CWA) A Central Withholding Agreement (CWA) is an agreement entered into by the non-resident alien (NRA) athlete or entertainer, a designated withholding agent and an authorized representative of the Internal Revenue Service. The agreement is for a specific tour or series of events and withholding is based upon the budget provided and net profits estimated. The CWA is not effective unless all parties have signed the agreement. The NRA must be in compliance for all required Federal Income tax returns and payment obligations. In the agreement you agree to timely file Form 1040 NR (or Form 1040NR-EZ) for the year in which the CWA covers independent personal services. If the tour covers a period that spans additional calendar years, more than one CWA may be required.

Frequently Asked Questions (FAQs) About Central Withholding Agreements

Processing CWA at the University of Wisconsin

 Obtain a copy of the CWA from the NRA athlete, entertainer, or their U.S. agent

 Process payments as per standard UW processing for NRA’s at Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments under the flowchart in the Nonresident Alien (NRA) header. Direct link at Process and Document Flowchart for Non-Scholarship/Fellowship Payments. Includes U.S. Individual Taxpayer Identification Number (ITIN) application process.

Note: The UW must obtain the documents in the flowchart above because the CWA only addresses the taxation issue and does not address the immigration issue and visa status of the individual or entity in the CWA. The only documents that the UW does not need to obtain from the flowchart above are the documents dealing with tax treaties because taxes are not required to be addressed or collected due to the CWA.

Note: Visa restriction must be adhered to as directed in the flowchart as many CWA guests are on P-3 (Artist or Entertainer in a Culturally Unique Program) which may only be employed "incidental to status" only by the petitioning employer or agency through whom the status was obtained. If the petition was sponsored by an agent on behalf of several employers, each entity must have been included on the itinerary at the time of USCIS's approval of the application. May be employed and compensated only by the petitioning employer or agency through whom the status was obtained.

Visa sponsors’ name can be located at the bottom of the U.S. Visa.