Q:

What are California withholding and tax table rates?

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Quick Answer

California withholding and tax table rates provide the applicable taxes employers must deduct from employees' paychecks, according to the California Employment Development Department. California applies a personal income tax on people who work in the state, and the state mandates state disability insurance withholding, notes Zacks Investment Research. Employers make the necessary deductions from paychecks and submit the payments to the California Employment Development Department, the state agency responsible for payroll tax policies.

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Full Answer

Two withholding schedules are available for determining the amount of personal income tax to deduct, since California provides two methods for calculating the appropriate withholding, notes the California Employment Development Department. One method is the wage bracket table method, and the other is the exact calculation method.

For 2015, the Employment Training Tax rate is 0.1 percent, and the State Disability Insurance withholding rate is 0.9 percent, reports the California Employment Development Department. The maximum State Disability Insurance withholding for each employee is $939.40. The Unemployment Insurance rate schedule in effect for 2015 is Schedule F+ and reflects a 15 percent emergency surcharge in addition to the contribution of 1.5 to 6.2 percent. Employers' Unemployment Insurance rates vary based on history; new employers are assigned a rate of 3.4 percent for the first two to three years of operation.

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