Withholdings


California Tax Forms/Publications
 
Withholding schedules can be found at: http://edd.ca.gov/Payroll_Taxes/Withholding_Schedules_-_Historical.htm

Employees should contact their tax advisors to review how withholding schedules affect their individual withholding or contact the Taxpayer Assistance Center at (888) 745-3886 for additional assistance.
 
California Withholding Schedules for 2009

As a result of the passage of Assembly Bill x4_17, the California Withholding Schedules for 2009 have been replaced effective Nov. 1, 2009, to accelerate withholding. Starting this week, employers must withhold 10 percent more in state income taxes. The action is technically not a tax increase because the state is supposed to return the extra money after taxpayers file their 2009 tax returns according to the California Franchise Tax Board. This accelerated withholding will remain in effect indefinitely.
 

Federal Tax Withholding Information

 

 
Click here for IRS Tax Information:

 
How do I adjust my federal tax withholding?
 
The Internal Revenue Service provides a publication each tax year to assist tax payers with adjusting their federal withholding using form W-4. Publication 919 is accessible using the link below to assist you with reviewing and/or changing your federal withholding. SDUSD Payroll staff are not tax advisors. If you have questions regarding your taxes, your withholdings, etc. please contact your tax advisor.
 
  

 

Imputed Income Tax: What you Should Know
Imputed income is a term the Internal Revenue Service (IRS) applies when they feel the value of a benefit or service should be considered income for the purposes of calculating your federal taxes. Only a few benefits may count as imputed income. For SDUSD employees this includes:
  • Basic life insurance in excess of $50,000. Eligible employees are automatically enrolled for basic life insurance coverage underwritten by Hartford Life Insurance and provided at district expense. The death benefit is equal to annual salary x 1.
  • Supplemental life insurance.
  • Medical and dental insurance coverage for domestic partners.
SDUSD takes payroll deductions on a tenthly basis. As a result, the tax required on a twelfthly basis is "caught up" on the October payroll each year. This taxable income is added to taxable gross for the months of July and August on the October payroll. In most cases, this amounts to a very small change in taxable gross (less than $25). If you have questions regarding the adjustment, please contact your payroll specialist. For information regarding IRS rules referenced here, visit the IRS web site or consult your tax professional.

 

IRS Provides Updated Withholding Guidance for 2013

IR-2013-1, Jan. 3, 2013

WASHINGTON — The Internal Revenue Service today released updated income-tax withholding tables for 2013 reflecting this week’s changes by Congress.

The updated tables, issued today after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by this week’s legislation.

Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2013, but not later than Feb. 15, 2013. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2013.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

More information can be found on this website.

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2011 CHANGES:The provisions of HR 1586 (Public Law 111-226, Section 219), signed into law by President Obama on August 10, 2010 include two major changes to current federal taxes related to payroll:
  • Elimination of Advanced Earned Income Credit (AEIC) 2011:
  • Effective January 1, 2011, employers will no longer advance the Earned Income Credit (EIC) on behalf of the federal government through payroll checks.  Eligible individuals will still be able to claim it on the 2011 tax returns but employers may no longer advance a portion of it with each paycheck. 
  • Social Security Tax Rate (also know as the payroll tax rate) Reduction for Employees in 2011 and 2012: The Social Security tax rate paid by employees will be reduced for wages and tips paid in 2011.  The rate is reduced from 6.2% to 4.2%. EXPIRED DECEMBER 31,2012 
For further information on the EIC, Social Security or any other federal tax inquiries for 2011, please visit the IRS web site at: http://www.irs.gov/.