Different owner payments have different tax implications. Make sure you prepare for the proper treatment before year end.
California requires withholding on certain payments made to out of state residents, unless a waiver is filed on Form 588.
With California's budget tighter than ever, the state is looking for new ways to collect all taxes due. A new regulation helps the state collect Use Tax on items purchased and used in the state. Companies who have not been in the habit of filing sales tax returns could now find themselves subject to a use tax return filing requirement under these rules.