REMITTING AND REPORTING INCOME TAX WITHHELD - 8422.196
Federal Backup Withholding
- Remitting Federal Backup Amount(s) Withheld
The agency/department shall prepare a voucher/claim schedule with the "Internal Revenue Service" (IRS) as payee. Supporting documentation for the voucher/claim schedule shall include a worksheet showing the claim schedule number, invoice number, payee name, invoice amount, and the amount subject to withholding. The Remittance Advice shall show the payee name and address as: Internal Revenue Service, P.O. Box 932300, Louisville, KY 40293-2300. Enter Federal Employee Identification Number, date, and amount paid in the right-hand box (reserved for payee invoice information) of the remittance advice. Also, the Annual Return of Withheld Federal Income Tax Payment Voucher, IRS Form 945-V, shall be attached to the remittance advice.
- Reporting Federal Backup Amounts Withheld
The agency/department shall file the Annual Return of Withheld Federal Income Tax, IRS Form 945. Line 2 of this return reports the total amount of federal backup income tax withheld and remitted.
- Reconciliation of Withholding, Remittances, and Information Returns
Agency/department accounting staff are encouraged to perform reconciliations, for internal use only, of the backup amounts withheld and remitted per the IRS Form 945-V, and the amounts reported per the IRS Form 945, and Form 1099.
Neither the IRS Form 945-V nor the IRS Form 945 provides for payee information. That information is provided only in the Annual Information Return, Form 1099. The IRS performs the necessary reconciliation between the IRS Form 945-V, IRS Form 945, and Form 1099 data for their internal review purposes.
For more information, refer to the IRS website https://www.irs.gov/ for Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(S) and Publication 15, Employer’s Tax Guide. For questions about federal backup withholding or information reporting, contact the IRS Information Reporting Program Centralized Customer Service Site at (866) 455-7438 or by E-Mail at mccirp@irs.gov.
State Backup Withholding and Nonresident Income Tax Withheld
- Remitting State Backup and Nonresident Taxes Withheld
State backup and nonresident income tax withheld shall be remitted to the FTB with Form 592-V, Payment Voucher for Resident and Nonresident Withholding, at the address shown on the form. Form 592-V is only required with check or money order and shall be made quarterly and no later than 15 days following each quarter ended. For each quarter, the agency/department shall prepare a voucher/claim schedule of the state tax withheld with the “Franchise Tax Board” as the payee. Supporting documentation for the voucher/claim schedule is a copy of the FTB Form 592 with a statement and signature certifying the copy of the form (see SAM section 8422.100). Also, the Form 592-V shall be attached to the Remittance Advice STD. 404c.
Form 592, Resident and Nonresident Withholding Statement information must be filed with the FTB to identify the payee, the income, and the withholding amount. This schedule will allow the FTB to allocate the withholding payments to the payee upon receipt of the complete Form 592. Agencies/departments must file electronically using FTB’s Secure Web Internet File Transfer instead of paper when the number of payees on Form 592 Schedule of Payees are 250 or more. For the electronic filing requirements, see FTB Publication 923, Secure Web Internet File Transfer (SWIFT) Guide for Resident, Nonresident, and Real Estate Withholdings. Form 592 can be mailed to FTB for payees numbering less than 250.
- Reporting State Backup and Nonresident Taxes Withheld
For residents and nonresidents whose California income taxes were withheld by the state agency/department, the Resident and Nonresident Withholding Tax Statement, FTB Form 592-B, will be sent annually to each payee to report both the total amount subject to withholding and the total amount withheld for the entire prior calendar year. Form 592-B shall be sent to the payee (for filing a California tax return) no later than January 31. Agencies/departments shall retain a copy for their records.
Refer to the instructions on FTB Form 592 and 592-B for additional information on the remittance and reporting of backup and nonresident income tax withheld. FTB Publication 1017, Resident and Nonresident Withholding Guidelines, also provides information on the state’s withholding requirements. The publication and the forms are available at www.ftb.ca.gov. For additional information, agencies/departments may contact the FTB, Withholding Services and Compliance Section at:
Franchise Tax Board
Withholding Services and Compliance Section MS F182
P.O. Box 942867
Sacramento, CA 94267-0651
Telephone: (888) 792-4900 or (916) 845-4900, Fax: (916) 845-9512
E-mail (non-confidential): WSCS.GEN@ftb.ca.gov