CALIFORNIA STATE UNIVERSITY, CHICO
PAYEE DATA RECORD
(REV 2-2004)
ARE YOU A RESIDENT OR NONRESIDENT?
Each corporation, individual/sole proprietor, partnership,
estate or
trust doing business with the State of California
must indicate their
residency status along with their taxpayer
identification number.
A corporation will be considered a “resident” of California if it
has a
permanent place of business in California. The
corporation has a
permanent place of business in California
if it is organized and
existing under the laws of this state or,
if a foreign corporation, has
qualified to transact intrastate
business. A corporation that has not
qualified to transact
intrastate business (e.g., a corporation engaged
exclusively
in interstate commerce) will be considered as having a
permanent place of business in this state only if it maintains
a permanent office in this state that is permanently staffed
by its
employees.
For individuals/sole proprietors, the term “resident”
of
California
includes every individual who is in California for
other than a
temporary or transitory purpose and any
individual domiciled in
California who is absent for a
temporary or transitory purpose.
Generally, an individual who
comes to California for a purpose which
will extend over a
long or indefinite period will be considered a
resident.
However, an individual who comes to perform a particular
contract of short duration will be considered a California
nonresident.
For withholding purposes, a partnership is considered a
California
resident partnership if it has a permanent place of
business in
California. An estate is considered a California
estate if the decedent
was a California resident at the time of
death, and a trust is considered
a California trust if at least
one trustee is a California resident.
More information on California residency status can be
obtained by
calling the Franchise Tax Board at the numbers
listed below:
From within the United States, call 1-800-852-5711
From outside the United States, call 1-916-845-6500
For hearing impaired with TDD, call 1-800-822-6268
Website - www.ftb.ca.gov
FOREIGN CITIZENS and FOREIGN BUSINESSES:
Federal tax withholding regulations differ significantly from
California tax withholding requirements. A tax analysis
consultation and additional forms must be completed before a
payment can be released.
ARE YOU SUBJECT TO CALIFORNIA NONRESIDENT
WITHHOLDING?
Payments made to California nonresident payees,
including
corporations, individuals, partnerships, estates
and trusts, are
subject to withholding. California nonresident
payees
performing services in California or receiving rent,
lease or royalty payments from property (real or personal)
located in
California will have 7% of their total payments
withheld for
state income taxes. However, no withholding is
required if total
payments to the payee are $1500 or less for
the calendar year.
A California nonresident payee may request that income
taxes
be withheld at a lower rate or waived by sending a
completed
form FTB-588 to the FTB address below. A waiver
will generally be
granted when a payee has a history of filing
California returns
and making timely estimated payments. If
the payee activity is
carried on outside of California or
partially outside of California, a waiver or reduced
withholding rate may be
granted. For more information,
contact:
Franchise Tax Board
Nonresident Withholding Section
Attention: State Agency Withholding Coordinator
P.O. Box 651 Sacramento, CA 95812-0651
Telephone: (916) 845-4900 FAX: (916) 845-4831
If
a reduced rate of withholding or waiver has been
authorized by the Franchise Tax Board, attach a copy
to
this form.
Section V - W-9 Certification
You must cross out item 2 on the certification if you have been
notified by the IRS that you are currently subject to
backup
withholding because you have failed to report all
interest and
dividends on your tax return. For real estate
transactions, item
1 does not apply. For further instructions
and information, please refer to IRS Form W-9.
PRIVACY STATEMENT
Section 7(b) of the Privacy Act of 1974 (Public Law 93-5791) requires that any federal, state, or local governmental agency which
requests an individual to disclose his social
security account number shall inform that individual whether that disclosure is
mandatory or voluntary, by which statutory or other authority such number is solicited, and what
uses will be made of it.
The State of California requires that all parties entering into business transactions that may lead to payment(s) from the State must
provide their Taxpayer Identification Number (TIN) as required by the State Revenue and Taxation Code, Section 18646 to facilitate
tax compliance enforcement activities and to facilitate the preparation of Form 1099 and
other information returns as required by the
Internal Revenue Code, Section 6109(a). The TIN for individual and sole proprietorships is the Social Security Number (SSN).
It is mandatory to furnish the information requested. Federal law requires that payments for which the requested information is not
provided be subject to a 28% withholding
and state law imposes noncompliance penalties of up to $20,000.
You have the right to access records containing your personal information such as your SSN. To exercise that right, please
contact the business services unit or the accounts
payable unit of the state agency(ies) with which you transact that business.
Please call the Department of Finance, Fiscal Systems and Consulting Unit at (916) 324-0385 if you have any questions regarding
this Privacy Statement. Questions related to
residency or withholding should be referred to the FTB telephone numbers listed above;
all other questions should be referred to the requesting agency.
