TAXES 17-10, California State Income Tax Withholding | National Finance Center

TAXES 17-10, California State Income Tax Withholding

Published: March 13, 2017
Effective: Pay Period 06, 2017

Summary

The income tax withholdings for the State of California will change as follows:

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 or 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. 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. 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 06, 2017)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. 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.
  3. 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.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. 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

    $13,687

    Married Claiming zero (0) or one (1) exemption1

    $13,687

    Married Claiming two (2) or more exemptions1

    $27,373

    Head of Household

    $27,373

    1Number of regular allowances claimed on DE-4 or W-4.

  6. 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.

  7. 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

    $4,129

    Married Claiming zero (0) or one (1) exemption1

    $4,129

    Married Claiming two (2) or more exemptions1

    $8,258

    Head of Household

    $8,258

    1Number of regular allowances claimed on DE-4 or W-4.

    Single Tax Withholding Table

    Taxable Wages

    Amount of Tax

    Over $0 but not over $8,015

    1.1%

    Over $8,015 but not over $19,001

    $88.17 plus 2.2% of excess over $8,015

    Over $19,001 but not over $29,989

    $329.86 plus 4.4% of excess over $19,001

    Over $29,989 but not over $41,629

    $813.33 plus 6.6% of excess over $29,989

    Over $41,629 but not over $52,612

    $1,581.57 plus 8.8% of excess over $41,629

    Over $52,612 but not over $268,750

    $2,548.07 plus 10.23% of excess over $52,612

    Over $268,750 but not over $322,499

    $24,658.99 plus 11.33% of excess over $268,750

    Over $322,499 but not over $537,498

    $30,748.75 plus 12.43% of excess over $322,499

    Over $537,498 but not over $1,000,000

    $57,473.13 plus 13.53% of excess over $537,498

    Over $1,000,000

    $120,049.65 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 $16,030

    1.1%

    Over $16,030 but not over $38,002

    $176.33 plus 2.2% of excess over $16,030

    Over $38,002 but not over $59,978

    $659.71 plus 4.4% of excess over $38,002

    Over $59,978 but not over $83,258

    $1,626.65 plus 6.6% of excess over $59,978

    Over $83,258 but not over $105,224

    $3,163.13 plus 8.8% of excess over $83,258

    Over $105,224 but not over $537,500

    $5,096.14 plus 10.23% of excess over $105,244

    Over $537,500 but not over $644,998

    $49,317.97 plus 11.33% of excess over $537,500

    Over $644,998 but not over $1,000,000

    $61,497.49 plus 12.43% of excess over $644,998

    Over $1,000,000 but not over $1,074,996

    $105,624.24 plus 13.53% of excess over $1,000,000

    Over $1,074,996

    $115,771.20 plus 14.63% over $1,074,996

    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 $16,040

    1.1%

    Over $16,040 but not over $38,003

    $176.44 plus 2.2% of excess over $16,040

    Over $38,003 but not over $48,990

    $659.63 plus 4.4% of excess over $38,003

    Over $48,990 but not over $60,630

    $1,143.06 plus 6.6% of excess over $48,990

    Over $60,630 but not over $71,615

    $1,911.30 plus 8.8% of excess over $60,630

    Over $71,615 but not over $365,499

    $2,877.98 plus 10.23% of excess over $71,615

    Over $365,499 but not over $438,599

    $32,942.31 plus 11.33% of excess over $365,499

    Over $438,599 but not over $730,997

    $41,224.54 plus 12.43% of excess over $438,599

    Over $730,997 but not over $1,000,000

    $77,569.61 plus 13.53% of excess over $730,997

    Over $1,000,000

    $113,965.72 plus 14.63% of excess over $1,000,000

  8. Determine the tax credit by applying the following guidelines and subtract this amount from the result in step 7:

    Tax Credit = $122.10 x Number of Regular Allowances Claimed on DE-4 or W-4.

  9. Divide the annual California tax withholding calculated in step 7 by 26 to obtain the biweekly California income tax withholding.

Resources

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

Previous Tax Formula

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