Sales and Use Tax Guidelines (STX)
Washington Business and Occupation Guidelines (WBO)
Tax Witholding for California Nonresidents
California Nonresident Withholding
Non-wage payments to nonresidents of California are subject to 7% state income tax withholding if the total payments during a calendar year exceed $1,500.
California nonresidents include:
- Individuals who are not residents of California.
- Business entities such as corporations, partnerships or LLCs that are either not registered with the California Secretary of State to do business in California or have no permanent place of business in California.
Payments subject to withholding include:
- Payments to nonresident independent contractors who provide services in California.
- Other non-wage payments of California source income to nonresidents such as leases, rents, royalties, winnings and payouts.
The amount of income withheld on and the tax is reported to each payee on Form 592-B, Resident and Nonresident Withholding Statement. Form 592-B must be issued to each payee by January 31 following the close of the calendar year.
Exemption from Withholding
The withholding requirements do not apply to:
- Individuals or business entities who are residents of California.
- Tax-exempt entities.
- Student Fellowships due to an exemption granted to the University of California.
Student FICA Exemption
As a University of California (UC) student employed at Lawrence Berkeley National Laboratory (UC-LBNL) you are eligible to be exempt from Medicare (1.45%) and UCRS Defined Contribution Plan (7.5%) if you meet the following criteria: You are employed less than 32 hours a week at UC-LBNL AND as an undergraduate student, you are enrolled in a minimum of 6 units or as a graduate student, you are enrolled ½ time.
For more information visit the Student FICA Exemption page on our Payroll website.