CA Tax Withholding for Independent Contractors!
New Law takes effect January 1, 2010
Payments to independent contractors that are subject to federal backup withholding are now subject to state backup withholding at a 7% rate.
The Franchise Tax Board is implementing new withholding and filing procedures for these non-wage payments. All withholding payments need to be remitted with a payment voucher. Complete information on the new forms and procedures is available at www.ftb.ca.gov/individuals/wsc/Processing_Changes_for_2010.shtml.
Use the fill-in forms available at: http://www.ftb.ca.gov/individuals/wsc/forms_and_publications.shtml