Unless you're in show business. There's no business like show business -
it's subsidized by the taxes everyone else pays.

Ken Javor
Phone: (256) 650-5261


> From: "Nyffenegger, Dave" <[email protected]>
> Reply-To: "Nyffenegger, Dave" <[email protected]>
> Date: Wed, 3 Sep 2014 00:21:20 +0000
> To: <[email protected]>
> Conversation: [PSES] Caution to those who live outside of California and got
> there on business!!! (Don't)
> Subject: Re: [PSES] Caution to those who live outside of California and got
> there on business!!! (Don't)
> 
> 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
>> --------------------------------------------------------------
>> 
>> -
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> 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:
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> 
> 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
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> For help, send mail to the list administrators:
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> Mike Cantwell <[email protected]>
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> For policy questions, send mail to:
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> 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
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> 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]>
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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/
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