Reportable Payments

Accounts Payable will retain the Payee Data Record form on file for audit purposes as required by the State.

Accounts Payable will issue Internal Revenue Service Form 1099MISC, as required by law, to any independent contractor receiving payment(s) from the University totaling $600.00 or more in within a calendar year.

If the independent contractor is a non-resident of California, tax must be withheld if payment exceeds or will exceed $1,500.00 within a calendar year. Withholding will occur at a rate of 7%. California Franchise Tax Board Form 592 will be issued to independent contractors for whom State tax withholding has occurred.

Non-resident alien (NRA, aka foreign) independent contractors are handled on a case-by-case basis, as visa status and specific country treaties must be taken into account to determine tax withholding percentages. If you have a possible NRA independent contractor you are considering hiring, please contact the NRA Accountant in General Accounting at x75154.