California Form 592 is a 2-page form where each page is called Side 1 and Side 2 respectively. The payer uses Form 592 to report additional 7% backup withholding to the state of California.
The first part of Side 1 asks the payer whether this form is amended or a prior year distribution. Neither of those boxes has to be checked. Amended forms can only be filed by the withholding agent. To amend, check the “Amended” box and include a letter explaining what changes were made and why and remit Form 592 and the letter to the FTB.
Then the form asks for the due date. The form is due quarterly. California backup withholding due dates are the same as the due dates for individual estimated tax payments.
Part 1 – Withholding Agent
The withholding agent is the payer. This is the individual or entity that makes payments of $1,500 or more of California Source Income to someone or some entity that is a non-resident of California and who does not have a permanent place of business in California. Part 1 asks for the business name and/or individual name, TIN, address and total number of payees.
Part 2 – Type of Income
Here the FTB wants to know what type of California Source Income is being withheld. There are 8 options lettered A through H:
A – payment to independent contractor B – Trust distributions C – Rents or royalties D – distributions to domestic nonresident partners, members, beneficiaries, S corporation shareholders E – estate distributions F – elective withholding G – elective withholding/Indian Tribe H – other and space is provided for the withholding agent to describe what other means.
There are then 7 edit boxes askes for whole values.
Line 1. Total Withholding, excluding Backup Withholding
Line 2. Total Backup Withholding
Line 3. Sum line 1 and line 2.
Line 4. Amounts of prior payments not previously distributed
Line 5. Amount withheld by another entity and being distributed
Line 6. Sum line 5 and line 5.
Line 7. Total withholding amount due which is line 6 subtracted from line 3. This total is remitted with Form 592-V to the FTB.
Part 3 – Perjury Statement
This section asks for the withholding agent name, phone, signature and date as well as the preparer name, phone, address, PTIN/SSN, signature and date.
Under penalties of perjury, the withholding agent and preparer are declaring that they have examined this return, including accompany schedules and statement, and to the best of their knowledge and belief, the statement is true, correct, and complete.
Side 2 – Schedule of Payees
The other page of 592 lists the payees.
