The Independent Contractor Team administers the withholding laws that pertain to nonresident independent contractors providing services in California. Payees are subject to withholding regardless of where the independent contractor lives, enter into the contract, or receive payment.
Compensation is considered earned where the services are performed.
I don't qualify for a waiver. I received a letter from XYZ Oil Company telling me they are required to withhold on my royalty payments. I am a nonresident of California and sell computer software to California companies. I hired a nonresident independent contractor to performed services for my company located here in California. I don't know if the independent contractor will be working for my company again this year.