# TAXES 16-07, California State Income Tax Withholding

Published: February 18, 2016

Effective: Pay Period 01, 2016

## Summary

This bulletin supersedes TAXES 16-04, California State Income Tax Withholding dated January 11, 2016. The married tax table value has changed from $4991.36 plus 10.23% over $103,080 to $4991.36 plus 10.23% over 103,060.

All other information remains the same and is listed below.

The income tax withholding formula for the State of California includes the following changes:

- The low income exemption amount for Single and Married with zero (0) or one (1) allowance will increase from $13,267 to $13,419.
- The low income exemption amount for Married with two (2) or more allowances and Head of Household will increase from $26,533 to $26,838.
- The standard deduction for Single and Married with zero (0) or one (1) allowance will increase from $3,992 to $4,044.
- The standard deduction for Married with two (2) or more allowances and Head of Household will increase from $7,984 to $8,088.
- The Single, Married, and Head of Household withholding tables will change.
- The annual personal exemption credit will increase from $118.80 to $119.90.

No action on the part of the employee or the personnel office is necessary.

## Tax Formula

State Abbreviation: |
CA |

State Tax Withholding State Code: |
06 |

Acceptable Exemption Form: |
DE-4 or W-4 |

Basis for Withholding: |
State or Federal Exemptions |

Acceptable Exemption Data: |
S, M, H/Number of Regular Allowances/Number of Allowances |

TSP Deferred: |
Yes |

Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household). Second or Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. If less than 10, precede with a 0 (zero). If no exemptions are claimed, enter 00. Determine the Additional Exemptions Claimed field as follows: First and Second Positions - Enter the number of allowances claimed in Item 2 of the DE-4. If less than 10, precede with a 0 (zero). If no allowances are claimed, enter 00. |

Additional Information: |
If the employee is using a W-4 in lieu of the California State DE-4, the information for the Additional Exemptions Claimed field should be notated on the W-4. |

#### Withholding Formula (Effective Pay Period 01, 2016)

- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- Determine if the employee's gross salaries and wages are less than or equal to the amount shown in the Low Income Exemption Table below. If so, no income tax is to be withheld.
**Low Income Exemption Table**Single

$13,419

Married Claiming zero (0) or one (1) exemption

^{1}$13,419

Married Claiming two (2) or more exemptions

^{1}$26,838

Head of Household

$26,838

- Determine the additional withholding allowance for itemized deductions (AWAID) by applying the following guideline and subtract this amount from the gross annual wages.
AWAID = $1,000 x Number of Itemized Allowances Claimed for Itemized Deductions on DE-4 or W-4.

- Subtract the standard deduction shown in the Standard Deduction Table below from the result of step 6 to determine the taxable income.
**Standard Deduction Table**Single

$4,044

Married Claiming zero (0) or one (1) exemption

^{1}$4,044

Married Claiming two (2) or more exemptions

^{1}$8,088

Head of Household

$8,088

**Single Tax Withholding Table**Taxable Wages

Amount of Tax

Over $0 but not over $7,850

$0.00 plus 1.1% of excess over $0

Over $7,850 but not over $18,610

$86.35 plus 2.2% of excess over $7,850

Over $18,610 but not over $29,372

$323.07 plus 4.4% of excess over $18,610

Over $29,372 but not over $40,773

$796.60 plus 6.6% of excess over $29,372

Over $40,773 but not over $51,530

$1,549.07 plus 8.8% of excess over $40,773

Over $51,530 but not over $263,222

$2,495.69 plus 10.23% of excess over $51,530

Over $263,222 but not over $315,866

$24,151.78 plus 11.33% of excess over $263,222

Over $315,866 but not over $526,443

$30,116.35 plus 12.43% of excess over $315,866

Over $526,443 but not over $1,000,000

$56,291.07 plus 13.53% of excess over $526,443

Over $1,000,000 and over

$120,363.33 plus 14.63% of excess over $1,000,000

**Married Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of California Tax Withholding Should Be:

Over $0 but not over $15,700

$0.00 plus 1.1% of excess over $0

Over $15,700 but not over $37,220

$172.70 plus 2.2% of excess over $15,700

Over $37,220 but not over $58,744

$646.14 plus 4.4 of excess over $37,220

Over $58,744 but not over $81,546

$1,593.20 plus 6.6% of excess over $58,744

Over $81,546 but not over $103,060

$3,098.13 plus 8.8 of excess over $81,546

Over $103,060 but not over $526,444

$4,991.36 plus 10.23% of excess over $103,060

Over $526,444 but not over $631,732

$48,303.54 plus 11.33% of excess over $526,444

Over $631,732 but not over $1,000,000

$60,232.67 plus 12.43% of excess over $631,732

Over $1,000,000 but not over $1,052,886

$106,008.38 plus 13.53% of excess over $1,000,000

Over $1,052,886 and over

$113,163.86 plus 14.63% over $1,052,886

**Head of Household Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of California Tax Withholding Should Be:

Over $0 but not over $15,710

$0.00 plus 1.1% of excess over $0

Over $15,710 but not over $37,221

$172.81 plus 2.2% of excess over $15,710

Over $37,221 but not over $47,982

$646.05 plus 4.4% of excess over $37,221

Over $47,982 but not over $59,383

$1,119.53 plus 6.6% of excess over $47,982

Over $59,383 but not over $70,142

$1,872.00 plus 8.8% of excess over $59,383

Over $70,142 but not over $357,981

$2,818.79 plus 10.23% of excess over $70,142

Over $357,981 but not over $429,578

$32,264.72 plus 11.33% of excess over $357,981

Over $429,578 but not over $715,962

$40,376.66 plus 12.43% of excess over $429,578

Over $715,962 but not over $1,000,000

$75,974.19 plus 13.53% of excess over $715,962

Over $1,000,000 and over

$114,404.53 plus 14.63% of excess over $1,000,000

- Determine the tax credit by applying the following guidelines and subtract this amount from the result in step 7.
Tax Credit = $119.90 x Number of Regular Allowances Claimed on DE-4 or W-4.

- Divide the annual California income tax withholding by 26 to obtain the biweekly California income tax withholding.

## Additional Resources

To view the updated tax formula go to the HR and Payroll Clients page from the **MyNFC **drop-down menu on the NFC homepage. Click the** Publications** tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

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