California 2012 Personal Income Tax (PIT) Withholding
The California Employment Development Department (EDD) has issued new California payroll withholding tables Effective January 1, 2012. The department has updated METHOD A – WAGE BRACKET TABLE METHOD and METHOD B – EXACT CALCULATION METHOD.
Method A is limited to wages/salaries less than $1 million and provides a quick and easy way to select the appropriate withholding amount, based on the payroll period, filing status, and number of withholding allowances.
Method B, which is typically used by payroll calculation software, may be used to calculate withholding amounts either manually or by computer.
For 2012, the California tax rate will remain the same at 6.6% for supplemental wages and 10.23% for stock options and bonus payments. You can learn more about California payroll withholding rates by referring to DE 44 (California Employer’s Guide).
California 2012 Unemployment Insurance (UI) Rate
The California UI taxable wage limit for 2012 is $7,000 per employee, per year. The UI tax rate for new employers is 3.4 percent (.034) for up to three years.* The UI tax rate for experienced employers varies based on each employer’s experience and the balance in the UI Fund. The 2012 maximum UI weekly benefit award is $450.
California 2012 Employment Training Tax (ETT) Rate
The California 2012 ETT rate is 0.1 percent (.001) of the first $7,000 per employee, per year.
California 2012 State Disability Insurance (SDI) Rate
The California 2012 SDI tax rate, which includes Disability Insurance (DI) and Paid Family Leave (PFL), is 1.0 percent (.01). The SDI taxable wage limit is $95,585 per employee, per year.* The 2012 maximum weekly DI/PFL benefit award is $1,011.