USA Engineer


LSU

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I have a few guys working for me in California, so the contractor who pays my company with holds 7% from invoice payment, only for hours worked, not expenses. Can that 7% be refunded or have I just gave CA 7% of my billing? I did not find out about this until six weeks into the job. I have done work all over the USA and internationally and never heard of this 7% withholding. Have you ever heard of anyone getting any money back?
 
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kirby

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California is taxing you as a nonresident earning california sourced income. So you will need to file a california 540NR to report the income and have the withholding credited to offset the tax.
 

LSU

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Confused

I was told I needed to fill out a CA Long Form 540NR, as I received a CA Form 592-B from the company I am supplying engineers to for a project in CA. The 540NR is for individual taxes, I am a Corporation, not an individual. No where on the 540NR does it have where I enter my Corporation name or FEIN. I have done work all over the USA, but never CA(Never again either) and have never ran into anything as this.
Is there another Form I fill out for Corporations, as I cannot find it?
 
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kirby

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Oh, you are a corp. ok that throws you into a different kind of California hell . A non Calif corp doing business in Calif needs to first file with the Calif Secretary of State before doing business. Form is called a "statement and designation by foreign corp" for a c corp , for example and other forms for llcs . Then when you file the tax return Calif doesnt just tax you on what you earned in Calif . Instead Calif taxes your worldwide income times a factor based on your payroll, sales and average property in calf divided by your same things worldwide. Filing: if you are a corp or an llc treated as a c file calif form 100. If an s corp or llc treated as an s file form 100s.
 
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