2010 Payroll Software: California Issues Advance 2010 Withholding Tables

The state of California has issued the 2010 payroll withholding tables, effective for wages paid on and after January 1, 2010.  California provides two methods for determining the amount of wages and salaries to be withheld for state personal income tax:

METHOD A provides a quick & easy way to select the appropriate withholding amount, based on the payroll period, filing status, and number of withholding allowances (regular and additional) if claimed. The STANDARD DEDUCTION and EXEMPTION ALLOWANCE CREDIT are already included in the wage bracket tables. Even though this method involves fewer computations than Method B, it cannot be used with your computer in determining amounts to be withheld.

METHOD B may be used to calculate withholding amounts either manually or by computer using a payroll software. This method will give an exact amount of tax to withhold. To use this method, you must enter the payroll period, filing status, number of withholding allowances, standard deduction, and exemption allowance credit amounts.

Our Payroll Mate payroll system uses Method B to calculate California withholding. To learn more about our product and to download a free demo please go to www.realtaxtools.com  .