Common use of Non-resident Tax Withholdings Clause in Contracts

Non-resident Tax Withholdings. Payments to all nonresidents may be subject to withholding. Non-resident payees performing services in California or receiving rent, lease, or royalty payments from property (real or personal) located in California shall have seven percent of their total payments withheld for state income taxes. No withholding is required, however, if total payments to the payee are $1,500 or less for the calendar year.