Simplify Form 592-B reporting for U.S. source income paid to foreign persons, including withholding and tax reporting. With 1099Online, you get built-in TIN-matching, bulk import, recipient copy delivery, and secure eFiling in one platform.
Form 592-B (Resident and Nonresident Withholding Tax Statement) is a California withholding tax statement that is issued to a payee. According to the Franchise Tax Board (FTB), the withholding agent must provide a completed Form 592‑B to each payee to report the total amount of payment or distribution subject to withholding and the California tax withheld as reported on Form 592, Form 592-PTE, or Form 592-F. California generally requires withholding of 7% on California-source non-wage payments (applies to non-resident payees) over $1,500 in a calendar year. However, some payees may obtain FTB approval for a withholding waiver or reduced rate.
If there is backup withholding (due to missing or invalid TIN), California backup withholding rate is also generally set at 7% of the payment. Unlike regular withholding, this cannot be reduced or waived.
Any withholding agent that withholds California tax on a reportable payment or distribution must provide Form 592-B to the payee. The FTB says, a withholding agent can be any person or entity who:
Payees use this form to claim withholding credits for the withheld amount on their California state tax return. Without a valid 592-B, those credits may be denied, which can lead to processing delays, notices, verification issues, or double taxation.
Prepare and provide Form 592-B online in minutes with 1099Online.
Get StartedAccuracy is important when you report on Form 592-B because even small errors can trigger penalties and processing delays.
Collect the following details to prepare and issue Form 592-B correctly the first time:
Note: Form 592‑B reports amount already included in Form 592, Form 592‑PTE, or Form 592‑F, so consistency across these filings is essential.
For the 2026 tax year, Form 592-B itself has not undergone major structural or rate changes. However, compliance expectations and enforcement continue to evolve.
Increase in penalties: Interest on late payments is computed from the due date of the withholding to the date paid. If you fail to provide complete, correct, and timely 592 form(s) to the payee, the penalty is up to $340 for each payee statement (if filed more than 6 months after the due date). If the failure is due to intentional disregard, the penalty is $680 or 10% of the amount that should have been reported (whichever is greater).
You must send withholding and related Form 592 filings by each of the following California payment-period due dates. Also, note that California's four remittance periods are not equal in length, so standard quarterly deadlines don't apply.
Note: When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day.
With the right platform, completing and sending Form 592-B online can be easier and smoother than you think. With 1099Online, you can do it in these simple steps:
First, select Form 592-B from the dashboard and enter your 592-B details manually or choose the method you're comfortable with to import them (Excel or CSV file). Add any missing details, like payee details and withholding agent details, income type, total income subject to withholding, and total California tax withheld manually (if required).
Generate individual 592-B statements for each payee and review all withholding details before sending them. Also, validate TINs to avoid backup withholding issues and ensure accurate reporting.
Double-check your filing summary to confirm everything is correct across all forms. 1099Online will send the confirmation when your submission has been successfully received. Finally, don't forget to keep copies of the statements and withholding records for at least 5 years.
Note: When the number of payees on Form 592 exceeds 250, it must be filed electronically via FTB’s Secure Web Internet File Transfer (SWIFT), instead of paper.
1099Online is an IRS-authorized eFile provider that gives withholding agents a guided way to file Form 592-B
Sign in to your 1099Online account and select Form 592-B. Enter your withholding agent information, including your Employer Identification Number (EIN) and your chapter 3 and chapter 4 status codes. Then enter your chapter 3 and 4 withholding totals, section 5000C procurement amounts, and federal tax liability for each quarter-monthly period as required by the IRS.
Review your total deposits made during the year, any applicable credits, and your balance due or overpayment.
Confirm your filing summary and submit Form 592-B securely to the IRS through 1099Online.
Mistakes happen. If you discover an error after furnishing Form 592-B to a payee, you must issue an amended statement. First, follow the amendment instructions for the relevant master form (Form 592, Form 592-PTE, or Form 592-F). Form 592-B must match the corrected withholding return. Then:
There is no separate filing threshold for Form 592‑B itself. Generally, certain California-source nonwage payments over $1,500 in a calendar year may need withholding (and Form 592-B reporting) unless an exemption, waiver, or reduced withholding applies.
It is generally 7% on non-wage California-sourced payments to nonresident payees, that exceed $1,500 in a given calendar year. For backup withholding, the same 7% rate applies, and it can’t be reduced or waived.
If you fail to provide a complete, correct, and timely Form 592‑B to the payee, the Franchise Tax Board (FTB) may impose penalties. Depending on the nature and severity of the failure, noncompliance can result in financial penalties, notices from FTB or delays for payee when claiming withholding credits.
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