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8A Page 16 Franchise Tax Board Reminds Local Agencies of Existing Nonresident Withholding Responsibilities Representatives from the state Franchise Tax Board(FTB)asked the League to distribute the following information on existing state nonresident withholding requirement to cities.Simiiar outreach by the FTB has occurred with other local govemment associations. The FTB wants to make sure that local agencies are aware that unless certain exceptions apply, a withholding of seven percent is required for all payments to nonresidents that exceed$1,50Q in a calendar year. (Califomia Revenue and Taxaaon Code Section 18662) This requirement may apply to nonresident independent contractors who receive California source income,and may include,but are not limited to consultants,trainers, inftastructure contractors,and other non-wage payments made to nonresiden�s who provide services to city governments in California. For more information on this requirement the FTB recommends that city oificials: • Visit www.ftb.ca.qov.Search for the term"withholding" • Review FTB Publication 1017,Resident and Nvnresidenf Wrthholding Gurdelrnes. • Calling the FTB(888}792-4900 or(996}845-6262. • Email the FT at wscs.aen(a�ftb.ca.qav. Please be sure to type"Nonresident Withholding" in the subject line.This ls not a secure email address. Do not send confidential information. Federal Stimulus Act Updates Oct.10 Accountability Dead[ine Looms Under Section 1512 of American Recovery and Reinvestment Act�ARRA),states,cities and ' counties receiving stimu(us grants must register and submit quarter[y reports on who is receiving ARRA funds and in what amounts,what projects are funded, and the status of completion and impact on job creation. Section 1512 reporting requirements apply to programs identified under Division A of ARRA. Programs identified under Division B are exempt from the reporting requirements. Organizations receiving ARRA funds that have been delegated to report by the prime recipients are also required to report. Local governments must register for reporting in accordance with the Act at � www federalreportinq.qov.All city grant recipients are urged to regis#er immediately if they not done so already. Many federal agencies and some state agencies are posting speciflc guidance and"frequently asked quesfions"on their Web sites to help grant recipients es�mate job creation and other information needed for ARRA Sec#ion 1512 recipient reporting requirements. For more information�visit the Web sites of fhe specific agencies that disbursed funds to your city for federal stimulus programs. For general information on this reporting requirement see the chapter on"General and Accountabifity Requirements of ARRA in the League's City Funding � Book on the League's Web site at www cacities.oraffederalstimulus. Oct.10 Accountability Reports to Receive Time for Reconciliation The Recovery Accountability and Transparency Board(RATB)announced on Sept. 14 that it was moving the dates by which it would make data from recipients of recovery funds available to the public.This will give recipients of recovery funds a short reconcilia#ion period to make corrections foltowing the submittal of their reports on Oct. 10.States and Iocal go�ernments ha�e expressed concern that RATB intended to make all Information it received on Oct. 10 public immediately and before recipients had an opportunity to reconcile their reports. 9