California Nonresident Withholding: Follow the Rules or Risk Penalties

“California law requires withholding of tax by persons (withholding agent) having the control, receipt, custody, disposal, or payment of items of California sourced income or California distribution from nonresidents of California.” — The California Franchise Tax Board If your California organization is required to withhold and remit backup withholding to the Internal Revenue Service, they are also required to backup withhold and remit withholding to the California Franchise Tax Board (FTB),…