Instructions For Form 100-Es Corporation Estimated Tax

G Underpayment or Late

• Corporations with no income other than qualified

• If line 8 is smaller than line 9, multiply line 8 (total

health care service plan income that is excluded

tax) by the applicable percentage (30%, 70%, 70%,

Payment

from gross income under R&TC Section 24330

or 100%) shown for each quarter at the top of

for the taxable year.

column (1) through column (4). Enter the result

Generally, an underpayment of estimated tax is the

• Qualified non-profit farm cooperative associations.

for each quarter on line 11.

difference between (1) the amount that would be due

• Credit unions.

• If line 9 is smaller than line 8, determine the

for each installment of estimated tax if the estimated

• Exempt homeowners’ associations.

amount to enter as follows:

tax was equal to 100% of the tax shown on the

• Unincorporated homeowners’ associations.

(a) Enter 30% of line 9 in column (1) of line 11.

return, prorated to each installment, and (2) the

• Exempt political organizations.

(b) Enter 70% of line 8 in column (2) of line 11.

amount actually paid or credited on or before the due

• Exempt organizations.

date of that installment.

• Corporations that are not incorporated under the

(d) Enter 100% of line 8 in column (4) of line 11.

Underpayment or late payment of estimated tax

laws of California and whose sole activities in

Line 12 – Total payment

installments will result in an estimated tax penalty

California are engaging in convention and trade

Enter the total payments of estimated tax for

calculated from the due date of each installment until

show activities for seven or fewer days during

the taxable year paid prior to the due date of the

paid, or until the 15th day of the 3rd month after the

a taxable year and that do not derive more than

installment. Include any overpayments from 2016 tax

close of the taxable year if filing Form 100, 100W

$10,000 of gross income reportable to California

that were credited to 2017 estimated tax.

or 100S, or the 15th day of the 5th month after the

during a taxable year.

Worksheet II — Exception B – Annualized Current

close of the taxable year if filing Form 109, whichever

For more information, get FTB Pub. 1050,

Year Income

is earlier. See General Information H, Exceptions to

Application and Interpretation of Public Law 86-272;

the Estimated Tax Penalty, and use form FTB 5806,

This exception applies if the estimated tax paid on

or FTB Pub. 1060, Guide for Corporations Starting

Underpayment of Estimated Tax by Corporations, to

or before the installment due date equals or exceeds

Business in California.

determine if an exception to a penalty exists and to

100% of the amount the corporation would owe

Newly Formed or Qualified Corporations. For

if its estimated tax was computed on annualized

figure the penalty.

the first taxable year, newly formed or qualified

current net income for tax purposes for the months

California does not conform to federal law regarding

corporations are not subject to the minimum

preceding the installment due date.

the application of the underpayment penalty. For

franchise tax. To avoid an estimated tax penalty,

Line 1 – Annualization periods

federal purposes, the application of the penalty is

newly formed or qualified corporations should

Enter the number of months that the corporation

based on the lesser of prior year or current year tax;

calculate the estimate installments based on

is using in the annualization period based on the

while for California purposes, the application of the

annualized current year income. See the instructions

options listed in the table below. For example, if the

penalty is based on current year tax only.

under General Information H, Exceptions

corporation elects Option 1, enter the annualization

H Exceptions to the Estimated

to the Estimated Tax Penalty, Worksheet II,

periods 2, 4, 7, and 10 in column (1) through

Exception B, Annualized Current Year Income, for

column (4).

Tax Penalty

more information.

Annualization Periods

Deployed Military Exemption. A corporation that

If the estimated tax paid is equal to or greater

Installment

1st

2nd

3rd

4th

is a small business solely owned by a deployed

than the amount defined in General Information G,

Standard Option

member of the United States Armed Forces shall

Underpayment or Late Payment, the FTB will not

not be subject to the minimum franchise tax if the

assess an estimated tax penalty. If an underpayment

Option 1

owner is deployed during the taxable year and the

exists, the FTB will not assess the estimated tax

Option 2

corporation operates at a loss or ceases operation

penalty if the corporation meets any one of the

Corporations may use the Standard Option or must

for taxable years beginning on or after January 1,

exceptions listed below.

make an election to use Option 1 or Option 2. Exempt

2010 and before January 1, 2018.

The following exceptions do not apply if the

organizations may use Option 1 (the standard option

estimated tax installments due are not paid on or

F Methods of Payment

for exempt organizations) or must make an election

before the installment due date.

to use Option 2. The election must be made on or

Electronic Funds Transfer (EFT) – Corporations

Worksheet I — Exception A – Prior Year’s Tax

before the due date of the first required installment

remitting an estimated tax payment or extension

This exception applies if the amount paid or credited

payment. The corporation must make a timely

payment in excess of $20,000 or having a total

on or before the installment due date equals or

election to use an expanded option even if it uses

tax liability in excess of $80,000 must remit all

exceeds the tax shown on the preceding year’s return

another method, such as Exception A, for its first

payments through EFT. Once a corporation meets

for a 12-month period, prorated to each installment.

installment. To make a California election, file federal

the threshold, all subsequent payments regardless of

Form 8842, Election To Use Different Annualization

Newly Formed or Qualified Corporations

amount, tax type, or taxable year must be remitted

Periods for Corporate Estimated Tax, or if a timely

The prior year’s tax exception does not apply for

electronically to avoid a 10% non-compliance

election was made for federal purposes by filing

the first taxable year. For the second taxable year,

penalty. The first payment that would trigger the

the federal Form 8842, and the corporation is using

the prior year tax exception does not apply if no

mandatory EFT requirement does not have to be

the same option for state purposes, attach a copy

tax liability existed in the first taxable year, or the

made electronically. Corporations required to remit

of the federal form to the corporation’s tax return

business operated for less than twelve full months.

payments electronically may use Web Pay or a

when filed. Once made, an election is irrevocable for

credit card and be considered in compliance with

If the corporation uses the annualized current year

the taxable year. The corporation should file federal

that requirement. The FTB notifies corporations

income method or the annualized seasonal income

Form 8842 with its first installment payment. If the

that are subject to this requirement. Those that do

method, see Worksheets II, III, and IV.

corporation must pay its tax liability using EFT, file

not meet these requirements may participate on a

federal Form 8842 on or before the due date of the

Line 1 – Taxable income

voluntary basis. If the corporation pays electronically,

first installment payment by mailing to:

Enter the amount of taxable income expected for the

do not mail the estimated tax voucher. For more

current taxable year.

FRANCHISE TAX BOARD

information, go to ftb.ca.gov and search for eft or

Line 7 – Other taxes

PO BOX 942857

call 916.845.4025.

R&TC Section 19023 defines tax, for purposes

SACRAMENTO CA 94257-0531

Web Pay – Corporations can make payments online

of California estimate payments, to include

Line 3 – Annualization amounts

using Web Pay for Businesses. Corporations can

alternative minimum tax, S corporation taxes from

Enter the annualization amounts from the table below

make an immediate payment or schedule payments

Schedule D (100S), excess net passive income, the

for the elected option. For example, if the corporation

up to a year in advance. Go to ftb.ca.gov for more

QSub annual tax, credit recapture, and the minimum

elects Option 1, enter on line 3 the annualization

information.

franchise tax. Enter applicable amounts for each

amounts 6, 3, 1.71429, and 1.2, in column (1)

Credit Card – Use a Discover, MasterCard, Visa, or

payment period.

through column (4), respectively.

American Express Card to pay estimated taxes. Go

Line 11 – A large corporation is any corporation,

Annualization Amounts

to . Official Payments Corp.

including a predecessor corporation, that had

charges a convenience fee for using this service.

Installment

1st 2nd

3rd

4th

California net income (computed without regard to

Mail – Using black or blue ink, make the check

Standard Option

1.33333

the net operating loss deduction) of $1 million or

or money order payable to the “Franchise Tax

more for any taxable year during the three taxable

Option 1

1.71429

1.2

Board.” Write the California corporation number,

years immediately preceding the current taxable year.

Option 2

2.4

1.5

1.09091

FEIN, and CA SOS file number, if applicable, and

Large corporations may use this exception for only

“2017 Form 100-ES” on the check or money order.

Line 8 – Other taxes

the first estimated tax installment and must add any

R&TC Section 19023 defines tax, for purposes

Make all checks or money orders payable in U.S.

reduction in the first estimated tax installment to the

of California estimate payments, to include

dollars and drawn against a U.S. financial institution.

second installment.

alternative minimum tax, S corporation taxes from

Enclose, but do not staple, the payment with this

If the annualized current year income method or

Schedule D (100S), excess net passive income, the

form and mail to:

annualized seasonal income method is not used for

QSub annual tax, credit recapture, and the minimum

the third or fourth installment, follow the instructions

franchise tax. Enter applicable amounts for each

FRANCHISE TAX BOARD

in the next column to figure the amounts to enter on

payment period.

PO BOX 942857

line 11 of Worksheet I.

SACRAMENTO CA 94257-0531

Page 2 Form 100-ES Instructions (REV 03-17) 2016

Instructions For Form 100-Es Corporation Estimated Tax - 2017 Page 2

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