California Tax
For California residents, you specify the employee's status and exemptions.
Deltek Modification Date - 12/15/17
Enter the following field information for residents of California on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
Companies must tax bonus wages at 10.23%, when no regular pay is included in the pay run.
Automatically Calculated Variables
Vision computes the following variables, based on the exemptions and filing status claimed by the employee
Standard Deduction
The standard deduction is a table-based deduction applied to all employees. The amount of the deduction depends on the number of regular exemptions claimed in the first Exemptions field and the employee’s filing status.
If the status is | Then the maximum is |
---|---|
Single, dual income married or married with multiple employers | $4,236 |
Married (0-1 exemptions) | $4,236 |
Married (2 or more exemptions) | $8,472 |
Unmarried head of household | $8,472 |
Additional Deductions
Additional deductions are based on the number of additional withholding allowances for estimated deductions entered in the Exemptions-2 field. It is determined by multiplying the number of exemptions-2 by $1,000.
Credit
The credit is based on the number of exemptions entered in the first Exemptions field. The amount of the credit is determined by multiplying the number of exemptions by $125.40.
Low Income Exemption
Vision compares the employee's wages, minus 401(k) Plan and 125/Cafeteria Plan contribution amounts, to an amount in the low income exemption table to determine eligibility for tax withholding. The amounts are based on the employee's marital status and the number of exemptions.
Status | Maximum Annual Amount for Exemption |
---|---|
Single, dual income married or married with multiple employers | $14,048 |
Married (0-1 exemptions) | $14,048 |
Married (2 or more exemptions) | $28,095 |
Unmarried head of household | $28,095 |
How Vision Calculates Tax
To calculate an employee's California State tax, Vision does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- Compares the employee’s annual gross wages to the low income exemption table. If they are less than or equal to the low income exemption, no tax is withheld.
- Subtracts the employee's standard deduction, additional deductions, and annualized 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
- Calculates the annual income tax, using Tax Calculation Method 1.
- Subtracts a credit (if applicable) from the annual income tax to determine the annual net income tax.
- Divides the net annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.