Supplier Related Tax Forms
International Individual/Nonresident Aliens (NRA) – An international individual is considered a nonresident alien if they reside outside the United States or do not have permanent residence status. The individual's residence status must be established by the Payroll Office prior to a submission of a supplier application. Please contact the Payroll Office to determine residence status. More information on international individual/nonresident aliens is available on the International Visitor page on the Payroll website.IRS Forms-1099-MISC – A supplier will be issued a Form 1099-MISC if they receive $600 or more in the calendar year. Form 1099 is used to report various types of income other than wages, salaries and tips to the IRS.
State of California Franchise Tax Board Nonresident Withholding – Payments made to out-of-state suppliers for services performed in California are subject to 7% state income tax withholding when payments exceed $1,500 in a calendar year. Included are corporations, limited liability companies, and partnerships that do not have a permanent place of business in the state of California. Types of income subject to withholding include, but are not limited to, payments for services performed in California and payments of leases, rents and royalties for property (real or personal) located in California. No withholding is required on payments for goods. In addition, a supplier will be issued a Form 592B at the end of the calendar year for all reportable withholdings FAQ (592).
Summarized version of above paragraph:
Payments made to out-of-state suppliers for services performed in California are subject to 7% state income tax withholding when payments exceed $1,500 in a calendar year. In addition, the supplier will be mailed a Form 592B at the end of the calendar year containing all reportable withholdings.
W-9 – A form requesting supplier identification for United States Residents only; either an Employer Identification Number (EIN) or Social Security Number (SSN). A copy of the most recent version of the IRS W-9 form completed, signed and dated within the last six months must be mailed to the Finance Office Attn: Supplier Application or emailed by secured attachment to email@example.com.