FTB Form 592 submissionsMay 2022 Tax News
Should I submit Resident and Nonresident Withholding Statement (Form 592) or a Pass-through Entity Annual Withholding Return (Form 592-PTE)
If you are a withholding agent who remits payments and submits nonresident withholding forms to the Franchise Tax Board, use these tips to ensure proper submission and avoid errors that could result in the assessment of penalties and interest.
- Which form should be used to report nonresident withholding?
File Form 592 to report withholding on domestic nonresident individuals. Items of income that are subject to withholding are payments to independent contractors, recipients of rents, endorsement income, royalties, etc.
A pass-through entity should use Form 592 if:
- It is reporting withholding from payments made to domestic nonresident independent contractors or domestic nonresident recipients of rents, endorsement income, or royalties.
File Form 592-PTE to allocate withholding on distributions paid to domestic nonresident partners, members, or shareholders, or pass-through entities to allocate withholding paid on their behalf to its partners, members, or shareholders.
A pass-through entity should use Form 592-PTE if:
- It is reporting withholding on distributions to their nonresident owners, or
- It was withheld upon by another entity and are allocating that withholding credit to their owners.
- When are Forms 592 and 592-PTE due?
Form 592 must be filed for each payment period for which withholding was required to be remitted to FTB. Payment Voucher for Resident and Nonresident Withholding (Form 592-V) must be submitted with Form 592 and the nonwage withholding payment.
Specific Payment Periods and Due Dates
Each specific payment period has a unique due date.
|Payment Period||Due Date|
|January 1 through March 31, 2022||April 18, 2022|
|April 1 through May 31, 2022||June 15, 2022|
|June 1 through August 31, 2022||September 15, 2022|
|September 1 through December 31, 2022||January 15, 2023|
Form 592-PTE must be filed on an annual basis no later than January 31 of the year following the year for which withholding was required to be remitted to FTB. Form 592-Q must be submitted with the annual Form 592-PTE and the pass-through entity withholding payments.
- Which voucher should be used when remitting nonresident withholding payments?
Use Payment Voucher for Resident or Nonresident Withholding (Form 592‑V) to remit withholding payments reported on Form 592.
Use Payment Voucher for Pass-Through Entity Withholding (Form 592‑Q) to remit withholding payments reported on Form 592-PTE.
- How is the payee informed of the withholding amount?
Resident and Nonresident Withholding Tax Statement (Form 592-B) must be sent to all payees (domestic nonresident partners, members, shareholders, foreign partners or members, and nonresident independent contractors) to report the amount of payment or distribution subject to withholding and tax withheld as reported to FTB.
- What should the withholding agent do if they file the incorrect form?
If an error is discovered after Form 592 or Form 592-PTE is filed, including filing an incorrect taxable year form, then an amended Form 592 or Form 592-PTE must be filed to correct any errors. Only withholding agents may file an amended form.
For more information, please visit our website at ftb.ca.gov and search nonresident withholding.