TAXES 22-21, California State Income Tax Withholding

Published: April 27, 2022
Effective: Pay Period 07, 2022

Summary

The income tax withholdings formula for the State of California includes the following changes:

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

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/M/H, Number of Regular Allowances, Number of Additional 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 and 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 allowance are claimed, enter 00.

Determine the Additional Allowances Claimed field as follows:

First and Second Positions - Enter the number of additional allowances claimed on the DE-4. If less than 10, precede with a 0. If no allowances are claimed, enter 00.

Additional Information:

Employees who have not submitted a DE-4 will default to Single and zero (S00) allowances.

Withholding Formula (Effective Pay Period 07, 2022)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine if the employee's gross salary 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

    $15,916

    Married Claiming 0 or 1 exemption1

    $15,916

    Married Claiming 2 or more exemptions1

    $31,831

    Head of Household

    $31,831

    1Number of regular allowances claimed on DE-4.

    Note: If the employee uses additional allowances for estimated deductions to reduce the amount of salaries and wages subject to withholding, such allowances must not be used in the computation of the low income exemption (Step 5) or standard deduction (Step 7).

  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.

  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

    $4,803

    Married Claiming 0 or 1 exemption1

    $4,803

    Married Claiming 2 or more exemptions1

    $9,606

    Head of Household

    $9,606

    1Number of regular allowances claimed on DE-4.

    Note: If the employee uses additional allowances for estimated deductions to reduce the amount of salaries and wages subject to withholding, such allowances must not be used in the computation of the low income exemption (Step 5) or standard deduction (Step 7).

  8. If the employee is claiming Single, Married, or Head of Household use the appropriate table below and apply the following tax rates to annualized taxable wages to determine the annual tax amount:

    Single Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $9,325

    1.1%

    Over $9,325 but not over $22,107

    $102.58 plus 2.2% of excess over $9,325

    Over $22,107 but not over $34,892

    $383.78 plus 4.4% of excess over $22,107

    Over $34,892 but not over $48,435

    $946.32 plus 6.6% of excess over $34,892

    Over $48,435 but not over $61,214

    $1,840.16 plus 8.8% of excess over $48,435

    Over $61,214 but not over $312,686

    $2,964.71 plus 10.23% of excess over $61,214

    Over $312,686 but not over $375,221

    $28,690.30 plus 11.33% of excess over $312,686

    Over $375,221 but not over $625,369

    $35,775.52 plus 12.43% of excess over $375,221

    Over $625,369 but not over $1,000,000

    $66,868.92 plus 13.53% of excess over $625,369

    Over $1,000,000

    $117,556.49 plus 14.63% of excess over $1,000,000

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $18,650

    1.1%

    Over $18,650 but not over $44,214

    $205.15 plus 2.2% of excess over $18,650

    Over $44,214 but not over $69,784

    $767.56 plus 4.4% of excess over $44,214

    Over $69,784 but not over $96,870

    $1,892.64 plus 6.6% of excess over $69,784

    Over $96,870 but not over $122,428

    $3,680.32 plus 8.8% of excess over $96,870

    Over $122,428 but not over $625,372

    $5,929.42 plus 10.23% of excess over $122,428

    Over $625,372 but not over $750,442

    $57,380.59 plus 11.33% of excess over $625,372

    Over $750,442 but not over $1,000,000

    $71,551.02 plus 12.43% of excess over $750,442

    Over $1,000,000 but not over $1,250,738

    $102,571.08 plus 13.53% of excess over $1,000,000

    Over $1,250,738

    $136,495.93 plus 14.63% of excess over $1,250,738

     

    Head of Household Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $18,663

    1.1%

    Over $18,633 but not over $44,217

    $205.29 plus 2.2% of excess over $18,663

    Over $44,217 but not over $56,999

    $767.48 plus 4.4% of excess over $44,217

    Over $56,999 but not over $70,542

    $1,329.89 plus 6.6% of excess over $56,999

    Over $70,542 but not over $83,324

    $2,223.73 plus 8.8% of excess over $70,542

    Over $83,324 but not over $425,251

    $3,348.55 plus 10.23% of excess over $83,324

    Over $425,251 but not over $510,303

    $38,327.68 plus 11.33% of excess over $425,251

    Over $510,303 but not over $850,503

    $47,964.07 plus 12.43% of excess over $510,303

    Over $850,503 but not over $1,000,000

    $90,250.93 plus 13.53% of excess over $850,503

    Over $1,000,000

    $110,477.87 plus 14.63% of excess over $1,000,000

     

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

    Tax Credit = $141.90 x Number of Regular Allowances Claimed on DE-4.

    Note: The number of additional allowances for estimated deductions claimed in step 6 must not be included when determining the tax credit.

  10. Divide the annual California tax withholding calculated in step 9 by the number of pay dates in the tax year 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) Home page. Select the Publications tab and select Taxes from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

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