California Employee Tax Withholding Help

Background

When you pay employees in California, you will need to set up their tax allowances that they entered on their California Employee’s Withholding Allowance Certificate.

For help with Wage Plan Codes, see California Wage Plan Codes.

How to set up California Employee Taxes in Patriot Software

When you are entering tax settings for employees in California, there are state tax fields that need to be entered.  For new customers adding employees in the wizard, these are found under the Tax Information page for the employee.

For employees you add after you complete the wizard,  you will be prompted to enter their tax info under Payroll > Employees > Employee List > Click the Employee Name > Taxes > Edit.  These fields are under the “State and Local Withholding” section.

Here is an explanation of these fields:

Additional Allowances: The employee can refer to the Worksheet B on the California Employee’s Withholding Allowance Certificate to calculate if any additional allowances can be taken.

Filing Status: Select from the filing status choices:
Single
Married
Head of Household – can take 0, 1, or 2 allowances

Regular Allowances: Enter the total number of personal allowances based on the employee’s Filing Status above.

Supplemental Type: In most cases, you’ll leave this field as “NONE.”  If you pay a bonus or commission as a separate payment from regular wages, you may need to change this field.  For more information about supplemental types, see the California EDD Sheet about supplemental wage payments.

State Additional Withholding:  Enter the additional dollar amount of state income tax to be withheld each pay period.

SDI Rate (If different for this employee):  Only enter a rate here if the employee has a different State Disability Insurance rate than the normal company rate.  Otherwise, leave this field blank, and the normal company SDI rate will calculate for this employee.