The rules
| Forms filed with the state | 1099s reach the Franchise Tax Board through the IRS Combined Federal/State Filing program. A direct filing is needed only for returns not filed through CF/SF. |
| Due date (direct filings) | Same as federal: 1099-NEC by January 31; other forms by February 28 on paper or March 31 electronically. |
| How | CF/SF election on the federal e-file; otherwise FTB's SWIFT system for electronic files. |
| Who must file | Any payer filing 1099s for California payees. Payers that e-file with the IRS and elect CF/SF have no separate FTB filing; payers that file on paper or without the CF/SF election file directly with FTB. |
| State 1099-K threshold | None; California follows the federal 1099-K threshold and receives 1099-K through CF/SF. |
| Nonresident withholding | 7% on California-source payments to nonresident payees once total payments exceed $1,500 in the calendar year: services performed in California (contractors, installation, public speaking), rents, leases, royalties, and payments to nonresident entertainers. Reported on Form 592 with Form 592-B to the payee; Form 590 (exemption certificate) or Form 587 (allocation) can reduce or eliminate it. |
- California backup withholding: 7% on payments subject to federal backup withholding, remitted on Form 592.
- California has the largest state exclusion program relevant to healthcare payers (Medi-Cal Suspended and Ineligible Provider List).
Questions people ask about California
Do I have to file 1099s directly with California?
Not for most payers: Without withholding, filing through the IRS Combined Federal/State program is sufficient. Any payer filing 1099s for California payees. Payers that e-file with the IRS and elect CF/SF have no separate FTB filing; payers that file on paper or without the CF/SF election file directly with FTB.
Which 1099 forms does California require?
1099s reach the Franchise Tax Board through the IRS Combined Federal/State Filing program. A direct filing is needed only for returns not filed through CF/SF.
When are 1099s due in California?
Same as federal: 1099-NEC by January 31; other forms by February 28 on paper or March 31 electronically.
How do I file 1099s with California?
CF/SF election on the federal e-file; otherwise FTB's SWIFT system for electronic files.
Does California have its own 1099-K threshold?
None; California follows the federal 1099-K threshold and receives 1099-K through CF/SF.
Does California require withholding on payments to nonresident contractors?
7% on California-source payments to nonresident payees once total payments exceed $1,500 in the calendar year: services performed in California (contractors, installation, public speaking), rents, leases, royalties, and payments to nonresident entertainers. Reported on Form 592 with Form 592-B to the payee; Form 590 (exemption certificate) or Form 587 (allocation) can reduce or eliminate it.
Verified September 24, 2026 against https://www.ftb.ca.gov/pay/withholding/withholding-on-nonresidents.html. Rules change annually and most states had not yet posted 2026 specifications at the time of review; confirm before filing.
What does not change by state
TIN matching, B-Notices, backup withholding and the IRC 6721 penalty are federal. A payee in California who gives you a name/TIN pair that does not match IRS records produces the same CP2100 line as one anywhere else, and the same 15- and 30-business-day clocks. State filing is a separate obligation layered on top.