A payment is made to an individual when that person earns income, regardless of whether or not cash or other property is actually transferred. Withholding tax is required at the time you make a payment of a withholding amount. A payment is considered to have been made to a person if it is paid for that person’s benefit. For example, a payment to a creditor of a person to pay off that person’s debts to the creditor is considered made to the
person.
A payment is considered to have been made to a person even if it is made to that person’s representative.
