UCLA TAX CHECKLIST
FOR INDEPENDENT CONTRACTOR SERVICE PAYMENTS
(INCLUDES HONORARIA, GUEST LECTURE FEES, CONSULTING FEES, TALENT FEES, PANELISTS FEES, ETC.)  

This checklist was designed by Corporate Financial Services to assist UCLA Departments comply with the tax reporting and withholding requirements associated with making Independent Contractor service payments; particularly those to Non-U.S. Citizens and Non-California Residents.  

1)    Determine whether the service payment is for Employee services or Independent Contractor
      services. See UC Business and Finance Bulletin 77, Independent Contractor Guidelines (check one).
               Service Provider (SP) should be classified as an employee.  Set up as an employee on EDB. 
              Do not complete balance of checklist.
            Service Provider (SP) should be classified as an Independent Contractor.
              Complete Bus 77 Checklist and retain in departmental files - Go to # 2.
              (Purchasing requires a copy of the completed Checklist for Purchase Orders for Independent
               Contractor Service Payments in excess of $2,500.)

2)      Determine if SP has a Taxpayer Identification Number (check one) - Go to #3.
        Yes - SP has a Social Security Number (SSN).  
           Yes - SP has a Employer Identification Number (EIN).  
       Yes - SP has an Individual Taxpayer Identification Number (ITIN).  
         No - SP needs a Taxpayer Identification Number.
         Contact Sandy Sabeti in Tax Services at ssabeti@finance.ucla.edu for instructions on
         how the SP can apply for a taxpayer identification number.  

3)      Determine SP’s Immigration Status (check one).
        U.S. Citizen - Go to #6.  
        SP has an I-94, Arrival/Departure Card with one (circle) of the following statuses: 
     A1,A2,B1,B2,H2,H3,J1,J2,K1,O1,O2,O3,P1,P2,TN,V1,WB,WT; and one (circle) of
        the following conditions - Go to #4.  
         i)    AI, A2 – letter of Approval from the State Department – Protocol Division.  
        ii)    B1, B2, WB, WT, and Canadians with Implied B2 Status.  Must complete and meet all
               three requirements stated in the UC W8 BEN  
       iii)    J1 Status – DS-2019, Certificate of Eligibility for Exchange Visitor, indicating UCLA as the
               sponsor or a letter of approval for payment from Non-UCLA sponsor.  
        iv)    H, O, P, TN Status – I-797, Notice of Action, indicating UCLA as petitioner.  
         v)    All Others – Employment Authorization Card.  
       SP has an I-551, Resident Alien Card (Greencard or other document indicating permanent U.S.
        residence) -  Go to #4.  
       SP is a Canadian Citizen and enters the U.S. with no immigration documentation.  As a result, 
        they have an “Implied B2” status.  Obtain copy of proof of residence in Canada - Go to # 4.  
      Other status.  Stop!  Contact Gayelea Allison for assistance.  

4)    Determine SP’s U.S. Residency for Federal Income Tax purposes by completing the
 UC W8 BEN (check one).  
       U.S. Resident - Go to # 6.  
        Non-U.S. Resident – Go to #5.

5)      Determine SP’s Tax Treaty Eligibility by completing the UCLA Tax Treaty Eligibility Checklist
 (check one) - Go to #6.  
        Eligible  
      Not eligible  

6)    Determine SP’s Residency for California Income Tax purposes by completing FTB FORM 590, Withholding Exemption Certificate (check one) - Go to #7.  
      SP is a California Resident 
      SP is a Non-California Resident

7)      Summarize SP’s Residency for U.S. & California Income Tax purposes (check only one).  
      A U.S. Citizen and Resident of California – Go to Payment Option A.  
     A U.S. Citizen and Non-California Resident – (Circle (i) or (ii) below).  
        i)     If services were performed in California - Go to Payment Option B.  
       ii)     If services were performed outside of California – Go to Payment Option C.  
      A Non-U.S. Citizen and Resident of California (rare) – (Circle (i) or (ii).  
        i)       U.S. Resident for tax purposes – Go to Payment Option D.  
       ii)      Non U.S. Resident for Federal Income Tax purposes – (Circle (1) or (2).  
              (1)    If services were performed in the U.S. - Go to Payment Option I.  
              (2)   If services performed outside the U.S. – Go Payment Option H.  
       A Non-U.S. Citizen and Non-California Resident – (Circle (i) or (ii). 
         i)      U.S. Resident for Federal Income Tax purposes - (Circle (1) or (2).  
              (1)    If services were performed in California - Go to Payment Option E.  
              (2)   If services were performed outside of California – Go to Payment Option D.  
        ii)      Non U.S. Resident for Federal Income Tax purposes - (Circle (1), (2) or (3).
              (1)    If services were performed in the U.S. and in California – Go to Payment Option F.  
              (2)   If services were performed in the U.S., but outside of California – Go to Payment 
                    Option G.  
              (3)   If services were performed outside the U.S. – Go to Payment Option H.

Payment Options  

The following list summarizes the tax-related paperwork that departments must provide to Accounts Payable* when requesting payments to Independent Contractors. Also included are the University’s Federal and California Income Tax withholding and reporting requirements for Independent Contractor payments.  
(*Purchasing requires a copy of the completed Checklist for Purchase Orders for Independent Contractor Service Payments in excess of $2,500.)

Please note that the scope of this checklist is limited to tax-related matters.  It is in no way intended to be an exhaustive list of University requirements relating to Independent Contractor payments.  Please contact Accounts Payable or Purchasing if you have specific questions on processing Independent Contractor payments in accordance with University policy.

  A)     U.S Citizen/U.S. Resident/California Resident
               Tax-Related Paperwork Required  
              i)     None  
              Federal Tax Implications  
              i)     Reported on a 1099 if annual payments total $600 or more  
             ii)      No Federal Income Tax withholding required  
             California Tax Implications  
              i)     No reporting required  
             ii)      No California Income Tax withholding required  

B)      U.S Citizen/U.S. Resident/Non-California Resident/Service in CA  
     Indicate the following in the appropriate PAC fields:  
      i)     Non-California Resident  
     ii)      Services were performed in California
    Paperwork Required - Note PAC order # on all forms and attachments  
      i)     Completed Form 590  
     ii)    Approved Form 594  (If reduced withholding is applicable.)  
    Federal Tax Implications  
      i)    Reported on a 1099 if annual payments total $600 or more  
     ii)    No Federal Income Tax withholding required  
    California Tax Implications  
      i)     No reporting or withholding required if annual payments total $1,500 or less  
     ii)    Reporting on a Form 592B is required if annual payments total more than $1,500  
    iii)    California Income Tax withholding rate is 7%, unless SP has been granted reduced withholding
           evidenced by a Form 594  

C)      U.S Citizen/U.S. Resident/Non-California Resident/Service outside CA
      Indicate the following in the appropriate PAC fields:  
        i)     Non-California Resident  
       ii)     Services were performed outside of California  
        Paperwork Required - Note PAC order # on all forms and attachments  
        i)     Completed Form 590  
     Federal Tax Implications  
        i)    Reported on a 1099 if annual payments total $600 or more  
       ii)     No Federal Income Tax withholding required  
      California Tax Implications  
        i)     No reporting or California Income Tax withholding required  

D)     Non-U.S Citizen/U.S. Resident/California Resident/Service in or outside CA  
    Paperwork Required - Note PAC order # on all forms and attachments  
        i)     Completed Statement of Citizenship and Federal Tax Status Form  
       ii)     Certificate of Academic Activity (if status is a B1, B2, WT, or WB)  
      iii)     Completed Form 590  
        Federal Tax Implications  
        i)    Reported on a 1099 if annual payments total $600 or more  
       ii)     No Federal Income Tax withholding required  
        California Tax Implications  
        i)     No reporting or California Income Tax withholding required  

E)      Non-U.S.Citizen/U.S. Resident/Non-California Resident/Service in CA  
     Paperwork Required - Note PAC order # on all forms and attachments  
        i)     Completed Statement of Citizenship and Federal Tax Status Form  
       ii)     Certificate of Academic Activity (if status is a B1, B2, WT, or WB)  
      iii)    Completed Form 590  
      iv)     Approved Form 594 (If reduced withholding is applicable)  
     Federal Tax Implications  
        i)        Reported on a 1099 if annual payments total $600 or more
       ii)      No Federal Income Tax withholding required  
       California Tax Implications  
        i)     No reporting or withholding required if annual payments total $1,500 or less  
       ii)    Reporting on a Form 592B is required if annual payments total more than $1,500  
      iii)     California Income Tax withholding rate is 7%, unless SP has been granted reduced 
             withholding on Form 594  

F)      Non-U.S.Citizen/Non-U.S. Resident/Non-California Resident/Service in California  
     Paperwork Required - Note PAC order # on all forms and attachments  
        i)     Completed Statement of Citizenship and Federal Tax Status Form  
       ii)     Certificate of Academic Activity (if status is a B1, B2, WT, or WB)  
      iii)     Completed Form 590
       iv)      Approved Form 594 (If reduced withholding is applicable)  
        v)     Completed Form 8233 if eligible for Tax Treaty benefits - see Form 8233 Instructions
         Federal Tax Implications  
         i)    Reported on a 1042-S  
        ii)      Federal Income Tax withholding at 30% unless reduced by tax treaty  
     California Tax Implications  
         i)     No reporting or withholding required if annual payments total $1,500 or less  
        ii)      Reporting on a Form 592B is required if annual payments total more than $1,500  
       iii)     California Income Tax withholding rate is 7%, unless SP has been granted reduced 
              withholding on Form 594  

G)     Non-U.S.Citizen/Non-U.S. Resident/Non-California Resident/Service in U.S. but outside of CA
     Indicate the following in the appropriate PAC fields:  
        i)        Non-California Resident  
       ii)      Services were performed outside of California  
     Paperwork Required - Note PAC order # on all forms and attachments  
        i)       Completed Statement of Citizenship and Federal Tax Status Form  
       ii)      Certificate of Academic Activity (if status is a B1, B2, WT, or WB)  
      iii)     Completed Form 590
      iv)       Completed Form 8233 if eligible for Tax Treaty benefits - see Form 8233 Instructions
     Federal Tax Implications  
         i)       Reported on a 1042-S  
        ii)      Federal Income Tax withholding at 30% unless reduced by tax treaty  
      California Tax Implications  
         i)        No reporting or California Income Tax withholding required

H)     Non-U.S.Citizen/Non-U.S. Resident/Non-CA Resident/Service outside the U.S  
     Indicate the following in the appropriate PAC fields:  
         i)     Services were performed outside the U.S.  
       Paperwork Required - Note PAC order # on all forms and attachments  
         i)     Completed Statement of Citizenship and Federal Tax Status Form  
        ii)      Completed Form 590
     Federal Tax Implications  
         i)     No reporting or withholding required because “foreign sourced income” is exempt  
       California Tax Implications  
         i)     No reporting or California Income Tax withholding required because foreign sourced 
              income is exempt  
 

I)      Non-U.S.Citizen/Non-U.S. Resident/CA Resident/Services in the U.S  
     Paperwork Required - Note PAC order # on all forms and attachments  
        i)     Completed Statement of Citizenship and Federal Tax Status Form  
       ii)      Certificate of Academic Activity (if status is a B1, B2, WT, or WB)  
      iii)     Completed Form 590
      iv)     Completed Form 8233 if eligible for Tax Treaty benefits - see Form 8233 Instructions
     Federal Tax Implications  
         i)    Reported on a 1042-S  
        ii)    Federal Income Tax withholding at 30% unless reduced by tax treaty  
      California Tax Implications  
         i)        No reporting or California Income Tax withholding required.