Adjustments on Talent Deals give you options for factoring bonuses or charges into internal and external artist payout calculations.
Reimbursement for production, hotel, or travel buyouts
Deduction for rentals or other charges
Artist Bonus for sell out bonuses, other flat bonuses, VIP or merch splits
Add an Adjustment
Adjustments can be used on offers and settlements to increase or decrease the artist payout and are handy for things like buyouts and artist bonuses.
To add an adjustment, click the three dot menu next to the Offer or Settlement button and select "Add Adjustment."
Choose between Reimbursement, Deduction, or Artist Bonus to adjust the payout. Depending on the deal, you will have options to include the adjustment in the Tax Withholding calculation, include in Split Point, or make the adjustment external only.
Use the Reimbursement option for things like production, hotel, or travel buyouts to add an amount to the artist payout. Read more below to decide when to use the Include in Calculations toggles.
Affects Split Point: If the deal has a Split Point, you will have the option to include the amount as a Split Point line item. This will increase the split point amount on the offer/settlement and add the amount as an addition on top of the payout.
Tax Withholding: If the deal has Tax Withholding enabled, you will have the option to factor the reimbursement amount into the tax calculation. For example, if the artist was getting paid $10,000 + $300 for production, you may choose to tax only the $10,000 or the full $10,300 by turning on the "Tax Withholding" toggle.
Affects External Settlement Only: If "Affects External Settlement Only" is off, the reimbursement amount will be added to the Artist payout on the Offer/Settlement and will be included within the Artist Payout line item on the Internal Settlement.
You may want to turn on the "Affects External Settlement Only" toggle when the cost of the reimbursement is already accounted for on the Costs tab of Prism internally and externally (screenshot below). When "Affects External Settlement Only" is toggled on, the Artist payout on the Offer/Settlement would be increased but the Artist Payout line item in the Internal Settlement would not include the adjustment. That would allow you to track the cost of the line item separately from the Artist Payout on the Internal Settlement.
Deductions can be used to remove a certain amount from a payout for things like rentals, cash advances, or for deducting the support payout from the headliner's pay.
Tax Withholding: If the deal has Tax Withholding enabled, you will have the option to factor the deduction amount into the tax calculation. For example, if the artist was getting paid $10,000 - $50 for a microphone rental, you may choose to tax the full $10,000 by leaving the "Tax Withholding" toggle off, or only the $9,950 by turning on the "Tax Withholding" toggle.
Affects Split Point: If the deal has a Split point, you will have the option to remove the adjustment amount from the Split Point.
Affects External Settlement Only: You may want to turn on the "Affects External Settlement Only" toggle to account for a deduction on the external Offer/Settlement only but represent the full artist payout amount in the Internal Settlement. This might be used for an additional Tax Withholding for example when needing to reduce the payout externally at settlement but still account for the full cost of the Artist Payout in the Internal Settlement. This could also be used if you already gave the artist a cash advance that you need to deduct from their payout but still need to represent the full artist payout in the internal settlement.
The Artist Bonus option is useful for adding flat bonuses to payouts like a sellout bonus, merch splits, or for VIP lifts.
Tax Withholding: When adding an Artist Bonus to a deal that has Tax Withholdings, the bonus will automatically be factored into the Tax Withholdings calculation. In the example above, if the artist was to be paid $10,000 plus a $1,000 sell out bonus subject to a 30% withholding tax, the full amount of the payout ($11,000) would be taxed, $11,000 - (30%*$11,000) = $7,700. If the addition to the payout should not be considered in the Tax Withholding calculation, switch the type to Reimbursement.
Affects Split Point: If the deal has a split point, you will have the option to include the bonus amount as a split point expense.
Affects External Settlement Only: If the "Affects External Settlement Only" toggle is on, the adjustment amount will increase the Artist Payout on the Offer/Settlement but will not increase the Artist Payout in the Internal Settlement. You may want to turn on the "Affects External Settlement Only" toggle for things that are already accounted for in your Internal Settlement such as pre-settlement fees. For example, if you are deducting $50 from the VIP ticket tier as a pre-settlement fee and giving the artist 100% of the VIP Lift, the $50 pre-settlement fee deduction is already being removed from your internal Net Gross, so if you were to add that $50 as a part of the artist payout cost with an adjustment internally as well, you would be double counting that deduction from your Net Profit.
Edit or Delete an Adjustment
To edit or delete an adjustment, click in the white space next to the Offer or Settlement button to see the adjustments listed below the payout. Once the section below the Payout expands, click the three dot menu next to the adjustment to edit or delete the adjustment.
Notes on Adjustments
Any adjustment that was built as a bonus or charge before February 2022 will increase or decrease both the external facing payout and the internal payout in the internal settlement. You may choose to update existing adjustments and events using the new functionality but rest assured that no calculations will change on your events that you made before February 2022.
On the Rental tab of Confirmed Rental events, there is a blue Add Adjustment button. Adjustments on Rental events adjust both the internal and external settlement.
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