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.