Franchise Tax Board (FTB) Nonresident Withholding Requirements
You may have State Nonresident Withholding responsibilities. If you pay California source income to nonresidents of California, the California Franchise Tax Board (FTB) wants to make you aware that unless certain exceptions apply, you must withhold and send to the FTB seven percent of all payments that exceed $1,500 in a calendar year (California Revenue and Taxation Code Section 18662). For more information on whether or not you are required by law to withhold or to get the appropriate forms to use, please see the FTB Decision Chart.
For a copy of the necessary forms visit the Forms and Publication page. Or for more general information on withholding requirements, visit the Withholding on California Source Income page or contact them at (888) 792-4900.