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State of California Franchise Tax Board

Tax News
Updates to Withhold at Source Regulations

Our updated nonwage withholding regulations (Regulation Sections 18662-0 through 18662-8 and 19002) are effective July 1, 2014. The updated regulations conform to current withholding laws, provide transparency for California’s existing nonwage withholding procedures, and present a more useful framework to assist our stakeholders to meet their withholding responsibilities.

Some highlights include:

  • Table of Contents – allows withholding agents, taxpayers, and the public to quickly locate the regulations for their specific needs.
  • Definitions – explains terminology commonly used for nonwage withholding.
  • Updated guidance on nonresident withholding procedures.
  • New section that details real estate withholding requirements.
  • New section that details nonresident withholding for entertainers, athletes, and speakers.
  • Information on how to calculate, report, and remit withholding.
  • Information on withholding penalties, liabilities, and interest.

We reserved Regulation Section 18662-7 that deals with pass-through entities for further development. An interested parties meeting will be held in the fall of 2014.

Go to ftb.ca.gov and search for final regulations for more information about these and other regulations.

Back to July 2014 Tax News

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