California State Withholding Law

As you may be aware California Revenue & Taxation Code, Section 18662 require withholding of California income from payments and disbursements made to non residents on California source income.  The withholding  rate for NON-RESIDENTS is currently 7%. As a result we must have every  owner, REGARDLESS OF RESIDENCY complete ONE of the following. 

To access your desired form, or to see details, instructions or form specific information click the desired form number.   Instructions are provided for each form. Forms 590 can be submitted back to us, all other you need to send to the FTB as per the instructions on the form. 

1. FORM 590, Withholding Exemption-  If you live in California OR if you meet any of the exemptions listed  on this form complete this form & return to us immediately. No withholding will take place.

2. FORM 587, Nonresident Withholding Allocation Worksheet-  If you are NOT exempt as listed on form 590 & do not meet the  requirements for a Reduced or Full Waiver Request (form 588 or 589),  complete this form & submit back to us immediately. Withholding will transpire monthly.

3. FORM 588, Nonresident Withholding Waiver Request-  You can request through the State of California to have a full waiver  from withholding if you meet their guidelines. If you meet the criteria  & want to submit your request, please follow the detailed  instructions on the form. Complete the form & submit to the State as  per the instructions. We will only stop withholding once you provide us  with the approval letter to stop withholding that you receive from the  state..

4. FORM 589, Nonresident Reduced Withholding Request-  You can request through the State of California to have a reduced  withholding if you meet their guidelines .If you meet the criteria &  want to submit your request, please follow the detailed instructions on  the form. Complete the form & submit to the State as per the  instructions. We will only stop withholding once you provide us with the  approval letter to stop withholding that you receive from the state. 

VERY IMPORTANT!   If we do not receive one of the Forms 587, 588, 589, 590 AND an approval letter from the state for forms 588 or 589 we are required to withhold 7% regardless of your state of residency. 

To avoid unnecessary withholding, please submit the required documentation to us via email to info@jjpm.net

For a copy of the Withholding Law Publication, please visit the website www.ftb.ca.gov & search publication 1017 or click here Ca. Withholding Law 1017

For questions on the above laws or specifics that pertain to your situation contact the Franchise Tax Board at 800-852-5711