So if my employer who is not CA based but does have other direct employees in CA, sends me to CA for a few days to work, they have to take out the CA income tax too?
Seems like CA has put up a big closed for business sign. -Dave -----Original Message----- From: Ken Javor [mailto:[email protected]] Sent: Tuesday, September 02, 2014 6:16 PM To: [email protected] Subject: Re: [PSES] Caution to those who live outside of California and got there on business!!! (Don't) Doug, Thank you so much for pointing this out. I have many CA customers, but luckily to date it has all been remote. Rest assured that in the future it will stay that way! Ken Javor Phone: (256) 650-5261 > From: Doug Smith <[email protected]> > Organization: D. C. Smith Consultants > Reply-To: <[email protected]> > Date: Tue, 2 Sep 2014 14:37:05 -0700 > To: <[email protected]> > Subject: [PSES] Caution to those who live outside of California and > got there on business!!! (Don't) > > Hi All, > > Just a note to those of you, especially consultants, but potentially > anyone who visits California, even for a day, on business. > > CA has new rules that require companies there (they don't all know > about it yet but will be in trouble after the first of the year if > they don't) to withhold CA income tax from payments made to people > from out of state if any of the work was done in CA. > > You need to fill out a tax form for every job/trip! It is "California > Form 587, Nonresident Withholding Allocation Worksheet." In my case > the client ignored the form and sent the maximum 7% of the gross > proceeds in to CA. > > The company for whom you do work is required to deduct 7% from the > gross payment to you, no allowance for expenses or, at least for the > last job I did, the fact the job required 3 days in NV and two in CA. > They took out 7% and sent it to the CA state government. > > The accounting for this is going to be tricky as you have to keep > track and justify how much of the work was in CA and how much > elsewhere. In the end, CA may extract up to 10% of your payment, 13% > if you are really well off. I suspect the accounting and submitting > tax forms will cost as much as the tax, or more. > > So starting now I am dividing my fee by 0.93 to cover the tax and > probably need to at least double that to cover my time and the > accountants time to keep track of all of this. I am thinking along the > lines of $500/day additional to CA companies until I get a better idea > of what this is going to cost. > > Although we don't have an income tax in NV they get it in other ways, > such as $2000/year from me for a special rental car tax meant to hit > tourists, as well as other taxes. I you come in from Massachusetts, > for instance, you will be required to pay MA and CA income taxes! That > plus Federal will be over 50% for most engineers (CA is 10% at $44,000 > per year). > > I am interested to find out if I am the first person to run into this. > If you go into CA for work purposes you will be hit for this. I plan > to ask the CA tax people which precinct they are going to allow me to vote in. > > Doug > > -- > University of Oxford Tutor > Department for Continuing Education > Oxford, Oxfordshire, United Kingdom > -------------------------------------------------------------- > ___ _ Doug Smith > \ / ) P.O. Box 60941 > ========= Boulder City, NV 89006-0941 > _ / \ / \ _ TEL/FAX: 702-570-6108/570-6013 > / /\ \ ] / /\ \ Mobile: 408-858-4528 > | q-----( ) | o | Email: [email protected] > \ _ / ] \ _ / Web: http://www.dsmith.org > -------------------------------------------------------------- > > - > ---------------------------------------------------------------- > This message is from the IEEE Product Safety Engineering Society > emc-pstc discussion list. To post a message to the list, send your > e-mail to <[email protected]> > > All emc-pstc postings are archived and searchable on the web at: > http://www.ieee-pses.org/emc-pstc.html > > Attachments are not permitted but the IEEE PSES Online Communities > site at http://product-compliance.oc.ieee.org/ can be used for > graphics (in well-used formats), large files, etc. > > Website: http://www.ieee-pses.org/ > Instructions: http://www.ieee-pses.org/list.html (including how to > unsubscribe) > List rules: http://www.ieee-pses.org/listrules.html > > For help, send mail to the list administrators: > Scott Douglas <[email protected]> Mike Cantwell > <[email protected]> > > For policy questions, send mail to: > Jim Bacher: <[email protected]> > David Heald: <[email protected]> - ---------------------------------------------------------------- This message is from the IEEE Product Safety Engineering Society emc-pstc discussion list. To post a message to the list, send your e-mail to <[email protected]> All emc-pstc postings are archived and searchable on the web at: http://www.ieee-pses.org/emc-pstc.html Attachments are not permitted but the IEEE PSES Online Communities site at http://product-compliance.oc.ieee.org/ can be used for graphics (in well-used formats), large files, etc. Website: http://www.ieee-pses.org/ Instructions: http://www.ieee-pses.org/list.html (including how to unsubscribe) List rules: http://www.ieee-pses.org/listrules.html For help, send mail to the list administrators: Scott Douglas <[email protected]> Mike Cantwell <[email protected]> For policy questions, send mail to: Jim Bacher: <[email protected]> David Heald: <[email protected]> - ---------------------------------------------------------------- This message is from the IEEE Product Safety Engineering Society emc-pstc discussion list. To post a message to the list, send your e-mail to <[email protected]> All emc-pstc postings are archived and searchable on the web at: http://www.ieee-pses.org/emc-pstc.html Attachments are not permitted but the IEEE PSES Online Communities site at http://product-compliance.oc.ieee.org/ can be used for graphics (in well-used formats), large files, etc. Website: http://www.ieee-pses.org/ Instructions: http://www.ieee-pses.org/list.html (including how to unsubscribe) List rules: http://www.ieee-pses.org/listrules.html For help, send mail to the list administrators: Scott Douglas <[email protected]> Mike Cantwell <[email protected]> For policy questions, send mail to: Jim Bacher: <[email protected]> David Heald: <[email protected]>
