OBTAINING PAYEE INFORMATION (STD. 204) - 8422.190
To file the Annual Information Returns correctly, below are the requirements for identifying and classifying reportable payments.
Purpose of the Payee Data Record form, STD. 204
The Payee Data Record form, STD. 204 must be completed by suppliers. The purpose of the STD. 204 form is to obtain payee information for income tax reporting and to ensure tax compliance with federal and state law. The STD. 204 is required for any non-governmental entity or individual entering into a transaction that may lead to a payment from the state. Therefore, a completed, dated, and signed STD. 204 with handwritten or electronic signature must be on file with the state before payments are disbursed.
Electronic signatures must meet the Secretary of State’s requirements in the California Code of Regulations, Title 2 Division 7, Chapter 10, section 22003. The original form must also be available and provided upon request. More information on electronic signatures is provided in the California Civil Code sections 1633.1 through 1633.17.
A completed STD. 204 is necessary to determine what payments are reportable by the payee and must be attached to each contract. For non-contract transactions, a completed STD. 204 must be retained in the agency/department. A completed STD. 204 is also required for non-state employees authorized to receive travel expense reimbursements directly from agencies/departments before the reimbursement is paid.
The payee will provide the following information on the STD. 204 in accordance with IRC section 6109(a) and RTC sections 18646 and 18661. Instructions for the payee are provided on page 2 of the form.
Completing the Payee Data Record form, STD. 204
Section 1-Payee Information
Complete the name and mailing address of the payee doing business with the state. Enter the name that appears on the payee’s federal tax return. The name provided shall be the tax liable party. The mailing address is where the payee will receive information returns. Use form STD 205, Payee Data Record Supplement to provide the payee’s remittance address information if different than the mailing address on STD 204.
Section 2-Entity Type
Check the payee entity type box by following the instructions on page 2 of the STD. 204.
Section 3-Tax Identification Number
Enter the payee’s Taxpayer Identification Number (TIN). The TIN must match the name given in Section 1-Payee Information. Refer to the instructions on page 2 of the STD. 204 for the TIN requirements. Payees must provide one of the following applicable TINs:
- Social Security Number (SSN)
- Individual Taxpayer Identification Number (ITIN)
- Federal Employer Identification Number (FEIN)
Refer to the IRS website for more information on TINs.
Section 4-Payee Residency Status
Enter the residency status of the payee by indicating resident or nonresident. Page 2 of the STD. 204 provides information for making this determination. For further information on nonresident withholding, see SAM section 8422.195.
Complete name, title, e-mail address, telephone number, date, and handwritten or electronic signature of the payee’s authorized representative. This signature certifies the accuracy of the information provided. All data on the submitted STD 204 must be unalterable including the signature.
If a payee does not properly complete and submit a STD. 204, then payment to the payee shall be reduced by the following:
- Federal backup withholding at a rate determined by the IRS. For more information, refer to the IRS Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(S). Additional resources include IRS Publication 15, Employer’s Tax Guide, and IRS Publication 17, Your Federal Income Tax. For questions about federal backup withholding or information reporting, contact the IRS’ Information Reporting Program Customer Service Section at (866) 455-7438.
- State backup withholding of 7 percent pursuant to RTC section 18664.
Payment may be subject to state income tax withholding if the payee indicates ”nonresident” on the STD. 204. Under circumstances where both backup withholding and nonresident withholding apply, only backup withholding shall be required. Refer to Franchise Tax Board (FTB) website at www.ftb.ca.gov for further information.
Agencies/departments are liable for amounts not withheld, under-withheld, or not remitted to the FTB pursuant to RTC sections 18662(d) and 18668. Information on federal and state tax withholdings is provided in SAM section 8422.195. In addition, agencies/departments are responsible for sending additional requests to those payees that fail to provide their TIN, as described in SAM section 8422.193.