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Service - Individuals

Service - Individuals

Owned by Heather Rutkowski
Last updated: Feb 06, 2025

U.S. Individual

 

  •  If the person is from CA and work performed in “Other US State” then it should be approved as:

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = No (Leave withholding section blank)

 

  •  If the person is from CA and work performed in California then it should be approved as:

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = No (Leave withholding section blank)

 

  • If the person is from Outside CA and work performed in “Other US State” then it should be approved as:

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = No (Leave withholding section blank)

 

  • If the person is from Outside CA and work performed in California then it should be approved as:

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = Yes 592CA_7 (for this I typically verify with the requester and/or the payee because I have seen the form being completed incorrectly). CA withholding amount should be 7% of the work performed in CA

 

  •  If the person is from Outside CA and work performed in California and outside CA then the lines will need to be broken up to have the work in CA on one line and the work outside of CA on another line (you can reject to AP and tell them how to correct or you can correct).

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = Yes 592CA_7, CA reportable amount should only be the amount for work performed in CA (there should be 2 lines on the oracle doc, 1 for work in CA and 1 for work outside of CA). CA withholding amount should be 7% of the work performed in CA

 

  •  If the U.S. person performed the work “Outside the U.S.” then it should be approved as (including all U.S. persons living outside the U.S):

1099 (Income Tax Type) = Yes (MISC7)

592 (Tax Withholding) = No (Leave withholding section blank)

 

Image for CA withholding

image-20240522-145420.png

 

 

Foreign Individual

 

  • If a foreign person performed the service outside the U.S then it should be approved as

1099 (Income Tax Type) = No (You can leave DAU/AR)

592 (Tax Withholding) = No (Leave withholding section blank)

 

  •  If a foreign person performed the service in the U.S. and not in California then it should be reviewed further by Heather B:

1099 (Income Tax Type) = Yes, Federal reporting and withholding may apply

592 (Tax Withholding) = No (Leave withholding section blank)

 

  • If a foreign person performed the service in the U.S. and in California then it should be review further by Heather B:

1099 (Income Tax Type) = Yes, Federal reporting and withholding may apply

592 (Tax Withholding) = Yes 592CA_7

 

  • If a foreign person performed the service in California and another U.S. State then it should be review further by Heather B:

1099 (Income Tax Type) = Yes, Federal reporting and withholding may apply

592 = Yes 592CA_7, CA reportable amount should only be the amount for work performed in CA

 

  • If a foreign person performed the service in California and Outside the U.S then it should be review further by Heather B:

1099 (Income Tax Type) = Yes, Federal reporting and withholding may apply (I will manually need to change the 1099 amount to be for work only in the U.S.)

592 = Yes 592CA_7 = Yes, CA reportable amount should only be the amount for work performed in CA

 

Image for CA withholding along with federal withholding

image-20240522-145404.png

Foreign income tax codes

10 - Industrial Royalties = Inventor Royalty

12 - Other Royalties = Copyrights (software, play, music)

16 - Scholarship or fellowship grants

17 - Compensation for independent personal services

23 - Other income

42 - Earnings as an artist or athlete-no central withholding agreement

43 - Earnings as an artist or athlete-central withholding agreement