Independent service and honorarium payments to California non-residents who come to California to perform service are subject to California State tax withholding at the rate of 7% if the gross payment is over $1500 per calendar year (FTB Pub 1017).
At year end, the California non-resident will receive from the University a Form 592B which reports the gross income paid and state tax withheld.
- The individual is responsible for filling a CA Form 540NR on or before April 15.
- Withholding can only be waived by the Franchise Tax Board – federal income tax treaties do not apply to state tax.
- To request a waiver for nonresident withholding, please complete a California Form 588 and send to the Franchise Tax Board
- To request a reduced withholding for nonresidents, please complete a California Form 589 and send to the Franchise Tax Board