Franchise Tax Board Nonresident Withholding Requirements


The California Franchise Tax Board (FTB) has requested the Board's assistance in notifying professional engineers, land surveyors, geologists, and geophysicists of withholding requirements. FTB has provided the following information. (Please do not contact the Board about this information; please contact FTB as indicated below.)

If you pay California source income to nonresidents of California, the California Franchise Tax Board wants to make you aware that unless certain exceptions apply, you must withhold and send to FTB seven percent (7%) of all payments that exceed $1,500.00 in a calendar year (see California Revenue and Taxation Code section 18662). For more information on whether or not you are required by law to withhold or to get the appropriate forms to use, click here.

Additional information is available in this Open Letter from FTB.

For a copy of the necessary forms visit FTB's Forms and Publications page. For general information on withholding requirements, visit FTB's Withholding on California Source Income page or contact FTB at 1-888-792-4900 (toll free).