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Agency: Adjustments
Agency: Adjustments

How to change the final artist walk amount, account for buyouts, deductions, and bonuses.

Rosie Scanga avatar
Written by Rosie Scanga
Updated over a week ago

Adjustments can be used on contracts and at settlement to increase or decrease the final artist payout. They're handy for things like buyouts, artist bonuses, or to quickly match the Artist payout to what was received from the Promoter. Adjustments can optionally impact the Artist Earnings amount, which Commission is based on.

Add an Adjustment

To add an adjustment, click the three dot menu next to the Contract or Settlement button and select "Add Adjustment."

Choose between Reimbursement, Deduction, or Artist Bonus to adjust the final payout. Depending on the deal, you will have options to include the adjustment in the Tax Withholding calculation, include in Split Point, and impact the Artist Earnings.

Reimbursement

Use the Reimbursement option for things like production, hotel, or travel buyouts to add an amount to the Artist Walk Amount that should not be factored into Commission. Read more below to decide when to use the Include in Calculations toggles.

Tax Withholding: If the deal has Tax Withholding enabled, you will have the option to factor the reimbursement amount into the tax withholding calculation. For example, if the artist was getting paid $10,000 + $300 for hotels, you may choose to tax only the $10,000 or the full $10,300 by turning on the "Tax Withholding" toggle.

Affects Artist Earnings: Affects Artist Earnings is off by default and uneditable when doing a reimbursement type adjustment. If the addition to the payout should be included as a part of the Artist Earnings and Commissioned, use the Artist Bonus adjustment type.

Affects Split Point: Turn this toggle on if the adjustment amount should be a show expense factoring into the Split Point. This will both increase the Split Point and increase the Artist Payout.

Deduction

Deductions can be used to remove a certain amount from the payout for things like rentals, or to deduct a support payout from the headliner payout.

Tax Withholding: If the deal has Tax Withholding enabled, you will have the option to factor the deduction amount into the tax calculation. In the example above, if the artist final payout was calculated as $5,000 minus a $250 for support, the withholding tax should only be on $4,750 and the Tax Withholding toggle should be on so that the tax calculation is only on $4,750 instead of the full $5,000.

Affects Artist Earnings: Turning on the Affects Artist Earnings toggle will factor the deducted amount into the Commission calculation. This toggle should typically be on when deducting a support payout like the example above. The Artist Earnings amount will be $4,750 and Commission will be Commission % * $4,750 instead of the full $5,000.

Affects Split Point: Turn this toggle on if the adjustment amount should be deducted from the Split Point. This will both decrease the Split Point and decrease the Artist Payout.

Artist Bonus

The Artist Bonus adjustment can be used for flat bonuses.

Tax Withholding: If the deal has Tax Withholding enabled, the bonus will be included in the Tax Withholding calculation by default. In the example above, if the artist was to be paid $10,000 + $1,000 at sellout via an adjustment, the Tax Withholding amount would be calculated on $11,000.

If the addition should not be factored into Tax Withholdings, use the Reimbursement adjustment type.

Affects Artist Earnings: Artist Bonuses will be calculated as part of the Artist Earnings and impact Commission by default. In the example above, if the artist was to be paid $10,000 + $1,000 at sellout via an adjustment, the Commission would be calculated as Commission % * $11,000.

If the addition should not impact commission, use the Reimbursement adjustment type.

Affects Split Point: Turn this toggle on if the adjustment amount should be added as a Split Point cost. This will both increase the Split Point and increase the Artist Payout.

Edit or Delete an Adjustment

To edit or delete an adjustment, click in the blank space next to the Contract 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.


If you have any questions please email clientsuccess@prism.fm
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