Vendor Data Record (Form 204)
Effective January 1, 1993, California Tax Regulations require the California State University system (CSU) to withhold Federal and/or State income taxes from payments to certain vendors. Payments made to nonresident vendors, including corporations, individuals, partnerships, estates and trusts, are subject to withholding. Nonresident vendors performing services in California or receiving rent, lease or royalty payments from property (real or personal) located in California will have 7% or their total payments withheld for State income tax. However, no withholding is required if total payments to the vendor for the calendar year are $1,500 or less.
Who Needs to Submit Form 204?
In order to gather such information as residency status, taxpayer ID number, Payee type, etc. the CSU now requires all vendors complete a Vendor Data Record Form, STD 204, on a one-time basis, before any payment can be made. If Form, STD 204 is not completed and returned by the individual or company being paid, payment will either be delayed or Federal and/or State withholding will be calculated (Federal withholding rate 30%, and for State income tax withholding rate 7%).
Who is Exempt from Filing a Form 204?
Payments made to other State or Federal agencies. Also, refund or reimbursement payments made to individuals are exempt from filing a Vendor Data Record Form.
How you can Help
If a School or Department is involved in dealing directly with a vendor (guest lecturers, emergency P.O.'s, e.g.) or is requesting a pre-payment for publication, subscription or membership, then the department must have the Vendor Data Record Form, Std 204, completed and signed and attached to the requisition, direct pay approval form and/or invoice when submitted. Because checks cannot be released or issued without the completed documentation described above, please plan in advance to do so to avoid payment delays.
Vendor Data Record (204 Form)
Reportable Vendors State & Federal Withholding/Non-Resident Aliens
The Vendor Data Record form is required to process payment by determining the tax status for reportable income and State and Federal withholding.
A 1099 Misc. is issued for services or rent if the total amount of payments made for the calendar year is $600 or more, including corporations for legal services.
Medical and Health Care Payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services, including Corporations.
Royalty payments of $10 or more will also receive a 1099 Misc.
Non Residents providing a service in California, including agents, entertainers and Corporations or partnerships are subject to 7% State withholding if the total amount of payments for the calendar year are $1,500 or more.
A non-resident payee may submit a Withholding Exemption Certificate Form 590.
Also, for a reduced rate form 589 Nonresident Reduced Withholding Request has to be submitted in advance of payment to the Franchise Tax Board.
Contact: Franchise Tax Board
Not Toll Free: 916-845-4900
Campus Contact: Janice Loo 278-6921 or Vicky Vongdara 278-7985
Applies to Non Resident Aliens - Refer to guidelines for U. S. Tax Information.