ARE YOU A RESIDENT OR NONRESIDENT?
Each corporation, individual/sole proprietor, partnership,
estate or trust doing business with the CSU, Chico Research
Foundation or University Foundation must indicate their
residency status along with their taxpayer identication
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 qualied to transact intrastate
business. A corporation that has not qualied 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 ofce 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 indenite 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
FOREIGN CITIZENS and FOREIGN BUSINESSES
Federal tax withholding regulations differ signicantly 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 address below. A waiver
will generally be granted when a payee has a history of ling
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.
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 Identication 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 31% 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 telephone numbers listed above; all other questions should be referred
to the requesting agency listed in Section 1.
Payee Data Record
page 2
Updated July 2015
CHICO STATE ENTERPRISES
25 Main Street
Chico, CA 95928-5388
www.csuchico.edu/cse
530-898-6811 (phone)
530-898-6021 (fax)
University Foundation
C/O Chico State Enterprises
25 Main Street
Chico, CA 95928-5388
