witholding federal state taxes - scoe
TRANSCRIPT
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WITHOLDING FEDERAL & STATE TAXES Step 10. Divide total annual withholding by pay calendar months to arrive at taxes withheld for
the pay period.
STATE CALCULATION
EXAMPLE: Monthly Salary: Pay Frequency: W-4 Status CalSTRS TSA Caf/1 25
$6,301.42 12 months/ Monthly pay Married, 1 $504.11 $308.00 $156.70
$6,301.42 (monthly salary) - $504.11 (CalSTRS) - $308.00 (TSA) - $156.70 (caf/ 125) = $5,332.61 (monthly taxable earnings)
$5,332.61 (monthly taxable earnings) x 12 (pay frequency) = $63 ,991.32 (annual taxable earnings)
$63,991.32 (annual taxable earnings) - $3,906 1 (one W-4 exemption) = $60,0085 .32 (adjusted wages)
$60,085.32 (adjusted wages) - $56,742 (excess over from tax chart) = $3,343.32 (excess amount)
----H:H,::;_~,:~·~-i-H~-~.'.;0-(-ammmt-o-f-tax-)-+-(-$-T,3-4-3-:3-Z--x-6:6% $220:66) $1, 759:-5-Ch----------------t---
$1,759.56 - $116.60 (one personal allowance credit) = $1,642.96 (total annual withholding)
$1,642.96 (total annual withholding) -c- 12 months = $136.91 (pay period taxes).
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WITHOLDING FEDERAL & STATE TAXES
PA"ll'\ROIUL iP,E Rl'OO
W1EE1KIL'rf BltiiJ.11EEll<JL Y SElMHMOl'fli'll'tll."i MDl'IAlillH Ly· Q.llllAITTERL "t. SElMl-AINNl.!lA'L ANN.IJJlAIL !!)Al L YIMllSC!EllJl..AN EOUtS
·CALI FORNI A MliHliOLIDING 'SCHIElDU LES lfOl!il 20114 M Eil1HDl:J1 IB·--EXAC'li CAll.Cl.lllL.Al'tlON IMEliliilOU
TABUE. 11 - !LOW !INCOME C'.A:EIMPlitlON TABLE
S.IN:Gll.E, tD.ILJAL .INCO:M E: M\A.F!lf;;ll'EO
o:R: IMA:R~I EJD 'll!llllitHI MIJ.llll.l'IPILE EM Pll.O'\l'ER!S
AlJLO'l.!'ffilNCES; ON! IDE .4 OR. W-.4
.$.2tm
.$5«1• '$542:
t.11.oaa $!,:u!il' $6.,499·
$·i12..~l :f>tm
'O' OR ' i1 ' '.2' OR IMORiE:
$25(11
$E\iOCJ• $542:
:t;,11.·!lB'J. $3.2491
:U.>m-9• $·i12;991
:$50
$EDll $:\1.flll) $·!1.-083: $2.1100; $6,411!191
$11.2,'991 $26,994
$."tlM
TABLE 2:., ES.TtlfMliEJD rDEOUCill'ONI 1"Jl.i8ll.E
tl!JNM\ARF,;ll'Etil IHIEM OF.
!H01l.J5E!Ht041.lil·
$~
$·'!1 .'IDll $:11 ,.1:183; $2,11'13!11: $6.,411!19·
:$11Z,997 :f;2s,g94
$.i1oo
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Afi!IE)t;"'t:t©NA~b~=========================================================================-Mli IHI lhl OL D.l NG
11.llJLOWANCES "'
181:- S1EiM I~ 'SEMI- !DAIL y} WEJEKJL Y WEElKILY MONITIH.L Y'l'MIDl'l~1T1H.LY QJIJJAl!l!liERL "f Jl.iNNUA'L ANINUl.AJL MISC ..
1 2: il
5. !ll· 1 a; 9•
1f!J,f'I!
'$1[91 '$38: ·t.ra ·$11 '$00·
$.115. $1~ $154 $173: :u B.2:
$38 J42: $11 ·f,aJ.
t.111151 :$1!25 '$.1154! $'11€1·7 '$11912: t:zca; .$2.3111 :$2501 '$.~9.1 .$~·2'
'$3.Ce• .$.i!;33, .$3i4S· :$31'5· :$;3851 :$4117
:f,a:;J. $2m $1iUl $i1,<00 $11Jl!;1 $&m $.i1.·rlll1 $2;!'.0!ti :f:.25U ::n!i<lll $i1.~ $3;(Ql) $M:l1 $i1JDl!I $2,o.IX!i $41,;000 $4117 $1,200 $2 .. ~ $5;00il!I :fiEKt· :u.wm $3;000 $6,.000 :$1583· $:1.100 $3,llm $."f,1!:00 :$;l!iEJ.7 $2,COl!I $4l~·!Dlll $B,tm :$"750• $2.200 $41.5!00 $9,1000 :$a3:J. $2,,ED:). $5,·(00 $.~('t·OOO
.. Nwmfuarillfi Arikiibooia'I Wffillh~f1irg1 All'a111aill::sa lfor IEstimatedl IDIE!ritLJciJans.efuimeorll 0011FamT11 DE ·4 l!Dli W-4.
!lot; lft<lile mrnriber d ' A.dditioraall Wf:l1hddillg1 .Pllkvmlmoae. ifar Ea'limertad Dollflt!OOls de'iro:dl is ~r tha1111 i1 il~ lilil\ltlip'l;;rtlile ar,ro1111 sfuawirn foo ooe·liilil i1lbnal1 Allcr~amze lhrt ilfue«rnlliliEar d'a'imed.
20
$4 ·ta;
:$112' '$1!5 :t.119 :$ZS: :$27 $.l!.11 :$351 :$83
WITHOLDING FEDERAL & STATE TAXES
P ¥ROLL PE RIOO
. t EE KLV g f!.•/EEK LY SEMl-PitDNTHL . MONTHLY ou· RTERLY SEMI- NNUAL A NNUA L DAILYJMISCEl..LA.NE:OUS
ld:t.t'M NeE;.. ON DE 4i ~
-4
a , 2 3· 4 15 a j1
a 9
1 0~
CALIF ~NIA . ITHHOLl:::4 f"'3 SC.HEDU LES FOR 2014 M ETHOD B---EKn.CT CALC!JLATION METHOD
TABLE. 3 - ST NOA RD CE DUCTlON T BLE
SINGLE, MARRIED DUAL I t•c.ot.•E MARRIED
OR MARRIED · ITH MUL Tl PLE EMPLOYERS
.t'ILL M.NCE:S ON DE 4 OR , -4
ilEE KLV
w.oo $2.24 $4,40 $J3.n $9.97
$1 .21 $13.45 $15.M $1 jl,$4. $2i:l.1 9 $22.42
'O' OR '1' '2' OR M RE
$'i'5 $1&1 $163 $326 $977
$1,.963 $3,.906
$15
$""5 $150 $163 $326. $911
$1.953 $3 006
$15
TABLE 4.- EXEMPTION ALL lANC.E TA BLE
p YROLL PERIOO
Bl- SEMI-EE'KLY MotHHLV MotffHL''I" QU RTERLY
$0.00 l{l.00 !W,OQ $0.00 $4.49 $4.96 $9.:112 $29.15 $9.9J $.9.72 $1 9 .. 43 ;ti59.Y.I
$1 3.45 $1.4.159 $29.15 $117.45. $"17.B4 $19.43 $30.81 $116.E(J $22.42 $Z4,29 $411.!59 $145,]5 $26..91 $29.15 $se.::m $1:i14.00 $31 .l!.9 $ :!!.4.01 $130,1112 $204.,05 $35.99 $39.9:i1 $7:il."}3 $233.213 $40.l!JS $43.""3 $97.45 $2&2.315 $44.BS $48.59 $91.P $2111 .&J
$150 $eDJ $ 28 $65
$1,953 $,J,£03 $7Ji12
$30
SEMI-ANNUAL
$0.00 $.'58.30
$1'16.00 $ 74.90 $2'.Jl.20 $.~1.50 $l 49.90 $4JllB.10 $4813.40 $524.:i'O $593.00
l.!JNMARRIE'D HEAD OF
HOUSEHat.D
ANNUAL
a.om $11&60 $233.20 $349.90 $465.40 $593.IJO $001160 $111&20 $932.BO
$1.049,40 $1.166£0
$150 $&00 $326 $851
$1 ,953 $3,flOO $7,9'12
$30
DAILY MISC.
$0.00 $0,45 $0.90 $1 .3:5 $1:19 $2.24 $2.89 $l;14 $l.59 $4.04! $4.49
~ 1r t11e rumtiari:t allatWanoaa Clatni!\lll excaeda o, ~ mat ae:ten111ne !Jrle amount ar ro1 Gl13d1t·oo 1:13 a lfifNed b'jl multl~lng !tie Ernaunt ~r me a lcfl!.'9.ll!>a tly !tie ·tcta1 mrnaer or alkr1t1Ef'lces.
Far !!IL!lm~e. the mmunt or tn: cra:llt w a maTil:d 'IBxpaJ!er ~. ~ tfll 5 Blki7Mmcea, ta!i oetern1na!l an Form DE .4. ar -4. an a li'eekt,t pay rd I paOOd wctJ~ tie $33 .BO.
WITHOLDING FEDERAL & STATE TAXES
TABLE 6 - 1AX RAU: TABLE:
.lllNNl!JAI!.. IPA'lflil.(l'ill.JL lflERlKlD SNGDE PERSONS, t:Nlll\LIHCCME MARF.3ED, 00 1M.i'!.R~1rn w 1m MUL TIPl!.E EMl?lO"l\'ERS
!IF THE liof(XliEllE lrt.ICDME IS ...
'9U1iNOli OVER
$1 ,692 .. . $111,976 .. . $.29,3.111 .. . ;w.m .. . $49,1M .. .
$264.,2m· .. . $3Clfi, '1100' .. . $500,fiOO· .. .
:$1J,ll100,00U ... . a ndl CNer
!IF l\HE li.ri.::aE!llJE. !NCO.ME. IS ...
O\IER BUT.NOli o.vrn
$0 $1l5,'iJM. .. . $1S, 'IJBlfl $31'B,Eml .. . :$:ui;D62 $66,142 .. . $f#l,JA ? $18,JBL. $J'a·,7B8 $09,5t9 .. . l$'il'lJ,54EI !$500,fiOO· ... . ~~)600 .~111J,:tDII· .. . i$1::,t"'fUJ,200 $11,ilJOO,IDJr .. .
$1,llXXM!OO $1:,0111,C:OO· .. . $11,lllH;l:OO a ndl l!M!r
n:u;: CC!MPUfi::D TA'l( '15 ...
a;: A001lN1l Pffis OV.E:R ....
1Jloo<Yo. !SD $ill.OO :Z.20ll% 1$1,1502 $!11UIQ .t4ilMl'K $111'}ll7fl $31l2.D:i' &BOOK $28.:.m, :$"7!ii'lU5 B.BOOK :Ja9 .. 3!14 $1:1,4'00.311
1111~ $1(9 774 ~41.0.63 1111.300% ~:2.SQ $23,328.52 1t2:400K • nm ;21:.1,M.Dll 113.!i.'M'K . ,lSlllD $fi.'li,3'J'.2.46 1!4.~ $ '~ , IJIOO,,il)l!D $1:2111,91.2'.41!1
OFMb!!JN,f OVrEiR ••.
p[LJ$
.B. !imll% $11B,71il 0 $CZ. 002. 6 2 110..23lm $..99,540 ~111211.26 1l11.33lm. $Bll1,,lSlllD $46,!ii57.00 112.AOO*. $.810,,:MIO $SB, 1NJIB 113 .~ $. '1,l:U)>,1000 $1100.!Sl1l.i!IC!i 114. fi3ll')'i. $1, DU.00 D $1!00. 0011/!l !]
IUNMAIRAIEOJHbAD, OF 1-0!!SE:H.O~
!IF T.HE.liAXA.811..E. ll'!~COME IS ...
.BUT.NOT O\llER
$D $15,U>Ci .. . !$1\fi,11141 ,$36,B.52 .. . $35\052 $48,l!M .. . $ 4a,348 ,$fiJ,!&9 .. . $S7,359 $BJ,7S1 .. . $€11,7611 $H6,700r .. .
$34!5 ·;:m~ u .14.,9Ji:il ... . $.f~ 4,036 $1301 ,fitOO .. . :$1:T:i.l,6fll:ri $11,~00. l!OO .. .
$.1,000•;000 .andl IW?!r
T14E: COMPUTE:O>'TtAJ( IS ...
oF:Mbl!lN11 O\ilE:R ...
'1.1oo<Yo. $0 $ill.OO 2. 2.ll>l:m $1115,17 4. :fl !i)lU1' 4!.4!l)JJ% $.i'JS/002 $324.DJ 6.00lm $46,346 $ 1,0011.U B.BOOK $57,359 $.ill 9l!I 23
1:11~ $b"'1' ,7t511 ~122:u· 11 11.~ ~.71!10. $:!'il,'1tlli.1D. 1.2 .. 43ll'll $11114!,'ll JB $39,mll.4} 1 . 3 .~ :sm~ .;5€10 $7:!:,~4.03 U.~ $'11,IXXM1llD $11'15. '11S.1B
22
lll\i!llL'lf 'J MISCIHJLJUfili::lllllllS !PA'.'lllROllJL lflElil[Olil, SIN!iLE PEEl!iSOOS> oUJIL MJOME MARRIED, OR MA:RRIElill W'ITHI MUtlilPLE: E:MPLOVERS
IF llltl:: TA>:11.BLE 11\IDl:!M E: IS ...
. $m $20 $il:°l0'
i$U19 i$Ui<1 i$1!lH !$WO:
$1, liJ'll. $.1,'lmB· $.'J,941B
EIUTNOli O\IE!ii!
·$20 ... $1EO ..•
:$1.IDD· ••• $151! ... :$11i111 ... $W.!I ...
$1, irn ... $1,9§15 ... $.G.iEl41B ••• and~
TI:-IE. CUMPUJEO ilAX lS ...
aF.Mb!J.Nili O'JJl::R ...
'1.100'it :$ill• 2.::n:Jrt<. ~ ,;tl.«KIK. ~ 6 .Em'it ·$1~ 8.9:Xl~ "$116'1
'iJll1:2:11~ $191 11 '1 .:U:J~ <$9.78 11 :z .-41 :II 'it U .173 113!i:ll!i\ .U,Bl'iifl H.6:11'i\> $3',948
,$.(Ul«J. $1132 $11.ID $2.~ $lijlJ $111.Z!i
$00·.JB $1i1111 .135 $21lll..118 $484.EO
MA.'RRIED IPE:~S
IF 11!-IE TAXABLE INl::O.MI:: IS ...
1$:112 1$3B2.
$1,B , $2.31lrl· #.J,94€1 $a'll1\2.
BUTNOli OVER
$'50 .. . $1:30 .. . :$2111 . .. . dll2 :$3B2 ...
$1, i!l6€l ..• $12.HB .. . $13.l!J«l .. . $.13, 9'1.2 .. .
and tM!11'
T14E.. CCIMP'UifElill iTAX IS ....
o!f:MODN:ti 01ri\E:R ..•.
F.Dl!Jfts
1 .100W. 2.:.lXJ'it 4l. i!tOOW. !liRJ!,J; El.oorlr.t
'~0:2:11~ 1111.!lrll'it '12.400~ 113.500'it 114!.SOO'it
•$302 .$.111.46 U92 u o.m
U.!36!il $117Dd'i12 $2,3.46 $2211'.111 $3',846 $41'1l.'1B $3,912 $4U.00
!.l.NMA!;;RIE:D~EAIJ ~ !HOUSEl!Q..U
IF TI-IE TAXABLE IN!X!IME 'IS ...
CIV.E:R. EIUTrmr O'llER
$50 .. . :$1!3B .. . :$111B .. . $221 .. . $~1, .. .
$11, J:tll' .. . $1,S'OO .. . $2.00!l .. . $0,9.tD .. .
and;:)~
li14E CO:MPUil'ED il"AX IS ...
L!F. JIMtttmm OV.E:R ..
·uoo~ 2.~~ 11. .• iOJ~ 6.oo:J'it 9.9lll9&
·m200~
'1':1.300~ '112.400~ '~:L'500~ Hf.l:J:J'it
$D.OO• $111il4! $.2.IOO, $4l.'il6 $1:00'
; .tll&2 $MD.Be $15111)2 $202'.29 $442.:i'E
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WITHOLDING FEDERAL & STATE TAXES
IRS Answers Questions on Public Employer Social Security/Medicare Tax Issues (The following is an excerpt)
In a legal memorandum, Jerry Holmes, branch chief (tax exempt and government entities), has provided answers to 65 questions on employment issues for the public employers' newsletter.
Document Type: IRS Legal Memorandums
Tax Analysts Document Number: Doc 2002-3263 (28 original pages)
Tax Analysts Electronic Citation: 2002 TNT 28-66
Citations: ILM 200206053 (12 Dec 2001)
=============== SUMMARY =============== In a legal memorandum, Jerry Holmes, branch chief (tax exempt and government entities), has provided answers to 65 questions on employment issues for the public employers' newsletter.
In the memorandum, Holmes provides answers to questions involving, among other ~--teA.-arn:t1vticare, the continuing employmen exemption, the tax treatment o
emergency firefighters, section 218 agreements, and exemptions from withholding.
Question: A part-time cafeteria employee has worked for School District A without interruption since 1985. The employee is hired in 2001 by School District A in a second, summer position on a grounds crew. Neither position is covered by a state retirement plan. Do the OASDI and Medicare portions of the FICA Tax apply to these two positions, or is the employee entitled to the continuing employment exception in one or both?
Both portions of the FICA tax apply to both positions. The continuing employment exception to Medicare tax provided in Code section 3121(u)(2)(C) is not available to this employee. It is only available to employees who participate in a public retirement system. Employees who are subject to FICA because they do not participate in a public retirement system must pay both portions of the FICA tax, regardless of when they were hired.
In general the Medicare portion of the FICA tax applies to employees of states and their political subdivisions, unless some exception applies. Section 3121(u)(2)(C) provides
20
WITHOLDING FEDERAL & STATE TAXES
an exception from Medicare tax for continuing employment. To qualify for the exception, the employee must satisfy three conditions: (1) the employee's service would be excluded from the term "employment" for FICA purposes if section 3121(u)(2)(A) did not apply. 1 (2) The employee was hired on or before March 31, 1986, as a bona fide employee, performing regular and substantial services. (3) The employment relationship with that employer has not been terminated after March 31, 1986. Effective for services performed after July 1, 1991, this exception is available only to employees who participate in a public retirement system.
Question: An employee of a school district was covered under the state employees' retirement system. The individual retired in 1999, began receiving a pension and was subsequently rehired by the same school district as a substitute teacher, bus driver, or coach. What taxes should be withheld?
The individual would be subject to Medicare tax, as the continuing employment exception would no longer apply. This would be true in all cases.
The remaining answer to this question depends upon whether the position is covered by a an agreement under section 218 of the Social Security Act (section 218 agreement).
An individual in a position covered by a section 218 agreement providing for full coverage is subject to social security tax under the terms of the 218 agreement. The 218 agreement takes precedence over the state-retirement-system rules of section 3121(b)(7)(F), under which the individual might not have to pay social security tax. See section 3121 (b )(7)(E), which excludes individuals under a 218 agreement from employment" under section 3121 (b )(7).
Thus, if a teacher who was covered under a state retirement system retired and was rehired as a bus driver, a position covered by a 218 agreement, the individual would be subject to social security tax under the terms of the 218 agreement.
Now consider the case of a physical education teacher who retired in 1998 from a fulltime teaching position. He was covered by the state retirement system and is now. The teacher is a rehired annuitant, i.e., a former participant in state retirement system who has previously retired and who is either (1) currently receiving retirement benefits or (2) has reached normal retirement age.
The regulations provide that a rehired annuitant is deemed to be a qualified participant in the retirement system without regard to whether he or she continues to accrue a
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WITHOLDING FEDERAL & STATE TAXES
benefit or whether the distribution of benefits under the retirement system has been suspended pending cessation of services. Section 31.3121 (b)(7)-2(d)(4)(ii), Employment Tax Regulations. This rule also applies if the annuitant was rehired by another school district which maintains the same retirement system as the first, for instance a second school district which participates in the same state retirement system under which the teacher is covered.
In other words, contributions do not have to be made to the state retirement system on the retired annuitant's behalf. He is also not subject to the OASDI portion of social security tax. Medicare tax would apply because the employee terminated his employment relationship after April 1, 1986, and no longer qualifies for the continuing employment exception. Question: A full-time teacher has a second position, working ten hours per week for the employing school district as a bookkeeper. The school district has a 218 agreement covering all employees. Should the district withhold and pay FICA from the teacher's wages as a bookkeeper?
Yes, the wages from the second position are subject to FICA. When a worker is in a position covered by a 218 agreement, the terms of that agreement govern the application of FICA. Question: Are school board members employees for FICA ur oses?
Their compensation is wages subject to FICA tax. A fee-based public official is one who receives compensation in the form of fees directly from the public with whom he does business, for instance, a notary public. Rev. Rul. 7 4-608, 197 4-2 C.B. 275. It does not matter what an official's compensation is called or how often it is paid. If the individual is an employee and receives compensation from a public employer rather than directly from members of the public, his or her compensation is subject to FICA tax. Question: A teacher who is not of retirement age retires from service due to a permanent disability. She was a member of the state teachers' retirement system and begins receiving annuity payments from the system. Later she returns to work for the same school district as a part-time tutor. The school district has no 218 agreement, and the position is not covered by a state retirement plan. Is she subject to OASDI or Medicare taxes?
It is our opinion that the teacher would not be subject to OASDI tax, as she would be regarded as a rehired annuitant. She was a qualified participant in the retirement system, and she is "in pay status" i.e., currently receiving retirement benefits. Consequently, she is deemed to be a qualified participant in the retirement system without regard to whether she continues to accrue a benefit. Section 31.3121 (b)(7)2(d)(4)(ii), Employment Tax Regulations. The teacher's remuneration as a part-time tutor would be subject to the Medicare tax if she was rehired after April 1, 1986.
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Statement Concerning Your Employment in a Job Not Covered by Social Security
Employee Name Employee ID#
Employer Name Employer ID#
Your earnings from this job are not covered under Social Security. When you retire, or if you become disabled, you may receive a pension based on earnings from this job. If you do, and you are also entitled to a benefit from Social Security based on either your own work or the work of your husband or wife, or former husband or wife, your pension may affect the amount of the Social Security benefit you receive. Your Medicare benefits, however, will not be affected. Under the Social Security law, there are two ways your Social Security benefit amount may be affected.
Windfall Elimination Provision Under the Windfall Elimination Provision, your Social Security retirement or disability benefit is figured using a modified formula when you are also entitled to a pension from a job where you did not pay Social Security tax. As a result, you will receive a lower Social Security benefit than if you were not entitled to a pension from this job. For example, if you are age 62 in 2005, the maximum monthly reduction in your Social Security benefit as a result of this provision is $313.50. This amount is updated annually. This provision reduces, but does not totally eliminate, your Social Security benefit. For additional information, please refer to Social Security Publication, "Windfall Elimination Provision."
Government Pension Offset Provision Under the Government Pension Offset Provision, any Social Security spouse or widow( er) benefit to which you become entitled will. be offset if you also receive a Federal, State or local government pension based on work where you did not pay Social Security tax. The offset reduces the amount of your Social Security spouse or wic1ow(erj"benefitby two-thirds of the amount or your pensmn.
For example, if you get a monthly pension of $600 based on earnings that are not covered under Social Security, two-thirds of that amount, $400, is used to offset your Social Security spouse or widow(er) benefit. If you are eligible for a $500 widow( er) benefit, you will receive $100 per month from Social Security ($500 - $400=$l00). Even if your pension is high enough to totally offset your spouse or widow( er) Social Security benefit, you are still eligible for Medicare at age 65. For additional information, please refer to Social Security Publication, "Government Pension Offset."
For More Information Social Security publications and additional information, including information about exceptions to each provision, are available at www.socialsecurity.gov. You may also call toll free 1-800-772-1213, or for the deaf or hard of hearing call the TTY number 1-800-325-0778, or contact your local Social Security office.
I certify that I have received Form SSA-1945 that contains information about the possible effects of the Windfall Elimination Provision and the Government Pension Offset Provision on my potential future Social Security benefits.
Signature of Employee Date
Form SSA-1945 (12-2004)
Information about Social Security Form SSA-1945 Statement Concerning Your Employment in a Job Not Covered by Social Security
New legislation [Section 4 I 9(c) of Public Law I 08-203, the Social Security Protection Act of 2004] requires State and local government employers to provide a statement to employees hired January 1, 2005 or later in a job not covered under Social Security. The statement explains how a pension from that job could affect future Social Security benefits to which they may become entitled.
Form SSA- 1945, Statement Concerning Your Employment in a Job Not Covered by Social Security, is the document that employers should use to meet the requirements of the law. The SSA-1945 explains the potential effects of two provisions in the Social Security law for workers who also receive a pension based on their work in a job not covered by Social Security. The Windfall Elimination Provision can affect the amount of a worker's Social Security retirement or disability benefi t. The Government Pension Offset Provision can affect a Social Security benefit received as a spouse or an ex-spouse.
Employers must:
• Give the statement to the employee prior to the start of employment;
• Get the employee's signature on the form; and
• Submit a copy of the signed form to the pension paying agency.
( Social Security will not be setting any additional guidelines for the use of this form.
Copies of the SSA-1945 are available online at the Social Security website, www.socialsecurity.gov/forml945 Paper copies can be requested by email at [email protected] or by fax at 410-965-2037. The request must include the name, complete address and telephone number of the employer. Forms will not be sent to a post office box. Also, if appropriate, include the name of the person to whom the forms are to be delivered. The forms are available in packages of 25 . Please refer to Inventory Control Number (ICN) 276950 when ordering.
Form SSA-1945 (12-2004)
Form W-4 (2014) The exceptions do not apply to supplemental wages greater than $1,000,000.
Nonwage income. If you have a large amount of nonwage income, such as interest or dividends, consider making estimated tax payments using Form 1040-ES, Estimated Tax for Individuals. Otherwise, you may owe additional tax. If you have pension or annuity iincome, see Pub. 505 to find out if you should adjust your withholding on Form W-4 or W-4P.
Purpose. Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.
Basic instructions. If you are not exempt, complete the Personal Allowances Worksheet below. The worksheets on page 2 further adjust your withholding allowances based on itemized deductions, certain credits, adjustments to income, or two-earners/multiple jobs situations. Exemption from withholding. If you are exempt,
complete only lines 1, 2, 3, 4, and 7 and sign the form to validate it. Your exemption for 2014 expires February 17, 201 5. See Pub. 505, Tax Withholding and Estimated Tax.
Complete all worksheets that apply. However, you may claim fewer (or zero) allowances. For regular wages, withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages.
Two earners or multiple jobs. If you have a working spouse or more than one job, figure t he total number of allowances you are entitled to c laim on all jobs using worksheets from only one Form W-4. Your withholding usually will be most accurate when all allowances are claimed on the Form W-4 for the highest paying job and zero allowances are claimed on the others. See Pub. 505 for details.
Note. If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds $1,000 and includes more than $350 of unearned income (for example, interest and dividends).
Head of household. Generally, you can claim head of household filing status on your tax return only if you are unmarried and pay more than 50% of the costs of keeping up a home for yourself and your dependent(s) or other qualifying individuals. See Pub. 501 , Exemptions, Standard Deduction, and Filing lnfomnation, for information.
Nonresident alien. If you are a nonresident a lien, see Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens, before completing this form. Exceptions. An employee may be able to claim
exemption from withholding even if the employee is a dependent, if the employee:
Tax credits. You can take projected tax credits into account in figuring your allowable number of withholding allowances. Credits for child or dependent care expenses and the child tax credit may be claimed using the Personal Allowances Worksheet below. See Pub. 505 for information on converting your other credits into withholding allowances.
Check your withholding. After your Form W-4 takes effect, use Pub. 505 to see how the amount you are having withheld compares to your projected total tax for 2014. See Pub. 505, especially if your earnings exceed $130,000 (Single} or $180,000 (Married).
• Is age 65 or older,
• Is blind, or
• Will claim adjustments to income; tax credits; or itemized deductions, on his or her tax return.
Future developments. Information about any future developments affecting Form W-4 (such as legislation enacted after we release it) will be posted at www.irs.gov/w4.
A
B
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Personal Allowances Worksheet (Keep for your records.) Enter "1" for yourself if no one else can claim you as a dependent .
I •You are single and have only one job; or I Enter "1" if: •You are married, have only one job, and your spouse does not work; or
•Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less.
Enter "1" for your spouse. But, you may choose to enter "-0-" if you are married and have either a working spouse or more than one job. (Entering "-0-" may help you avoid having too little tax withheld.) . ·
Enter number of dependents (other than your spouse or yourself) you will claim on your tax return .
Enter "1" if you will file as head of household on your tax return (see conditions under Head of household above)
Enter "1 " if you have at least $2,000 of child or dependent care expenses for which you plan to claim a credit
(Note. Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.)
Child Tax Credit (including additional child tax credit). See Pub. 972, Child Tax Credit, for more information.
• If your total income will be less than $65,000 ($95,000 if married), enter "2" for each eligible child; then less "1" if you have three to six eligible children or less "2" if you have seven or more eligible children.
• If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter "1" for each eligible child
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mptions-you clai111 011 yourtaxretum:j-..-1-11--------- - -
For accuracy, I complete all worksheets that apply.
• If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions and Adjustments Worksheet on page 2.
• If you are single and have more than one job or are married and you and your spouse both work and the combined earnings from all jobs exceed $50,000 ($20,000 if married), see the Two-Earners/Multiple Jobs Worksheet on page 2 to avoid having too little tax withheld.
• If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below.
----------------- ---- ------------- Separate here and give Form W-4 to your employer. Keep the top part for your records. ----------------------------------
Employee's Withholding Allowance Certificate Form W•4 Oepartment of the Treasury ~ Whether you are entitled to claim a certain number of allowances or exemption from withholding is Internal Revenue service subject to review by the IRS. Your employer may be required to send a copy of this form to the IRS.
OMS No . 1545-0074
~@14 Your first name and middle initial Last name 2 Your social security number
Home address (number and street or rural route} 3 0 Single 0 Married 0 Married, but withhold at higher Single rate.
Note. If married, but legally separated, or spouse is a nonresident alien, check the "Single" box.
City or town, state, and ZIP code 4 If your last name differs from that shown on your social security card,
check here. You must call 1-800-772-1213 for a replacement card. ~ D 5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2)
6 Additional amount, if any, you want withheld from each paycheck
7 I claim exemption from withholding for 2014, and I certify that I meet both of the following conditions for exemption.
• Last year I had a right to a refund of all federal income tax withheld because I had no tax liability, and
• This year I expect a refund of all federal income tax withheld because I expect to have no tax liabrcil""'ity,_,. ____ _ If you meet both conditions, write "Exempt" here . . ~ 7
Under penalties of perjury, I declare that I have examined this certificate and, to the best of my knowledge and belief, it is true, correct, and complete.
Employee's signature (This form is not valid unless you sign it.) ~ Date ~
8 Employer's name and address (Employer: Complete lines Band 10 only if sending to the IRS.} 9 Office code (optional) 10 Employer identification number(EIN}
For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat . No. 102200 Form W - 4(201 4)
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Form W-4 (2014) Page 2
Deductions and Adiustments Worksheet Note. Use this worksheet only if you plan to itemize deductions or claim certain credits or adjustments to income. 1 Enter an estimate of your 2014 itemized deductions. These include qualifying home mortgage interest, charitable contributions, state
and local taxes, medical expenses in excess of 10% (7.5% if either you or your spouse was born before January 2, 1950) of your income, and miscellaneous deductions. For 2014, you may have to reduce your itemized deductions if your income is over $305,050 and you are married filing jointly or are a qualifying widow(er); $279,650 if you are head of household; $254,200 if you are single and not head of household or a qualifying widow(er); or $152,525 if you are married filing separately. See Pub. 505 for details 1 $
I $12,400 if married filing jointly or qualifying widow(er) I 2 Enter: $9, 100 if head of household 2 $
$6,200 if single or married filing separately
3 Subtract line 2 from line 1. If zero or less, enter "-0-" 3 $
4 Enter an estimate of your 2014 adjustments to income and any additional standard deduction (see Pub. 505) 4 $
5 Add lines 3 and 4 and enter the total. (Include any amount for credits from the Converting Credits to Withholding Allowances for 2014 Form W-4 worksheet in Pub. 505.) . 5 $
6 Enter an estimate of your 2014 nonwage income (such as dividends or interest) 6 $
7 Subtract line 6 from line 5. If zero or less, enter "-0-" 7 $
8 Divide the amount on line 7 by $3,950 and enter the result here. Drop any fraction 8
9 Enter the number from the Personal Allowances Worksheet, line H, page 1 9
10 Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earners/Multiple Jobs Worksheet, also enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1 10
Two-Earners/Multiple Jobs Worksheet (See Two earners or multiple jobs on paqe 1.) Note. Use this worksheet only if the instructions under line H on page 1 direct you here.
1 Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet) 1
2 Find the number in Table 1 below that applies to the LOWEST paying job and enter it here. However, if you are married filing jointly and wages from the highest paying job are $65,000 or less, do not enter more than "3" 2
3 If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter "-0-") and on Form W-4, line 5, page 1. Do not use the rest of this worksheet . 3
Note. If line 1 is less than line 2, enter "-0-" on Form W-4, line 5, page 1. Complete lines 4 through 9 below to figure the additional withholding amount necessary to avoid a year-end tax bill.
4 Enter the number from line 2 of this worksheet 4
5 Enter the number from line 1 of this worksheet 5
6---Subtract-line-5-fromiinc .. . t)
7 Find the amount in Table 2 below that applies to the HIGHEST paying job and enter it here 7 $
8 Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed 8 $
9 Divide line 8 by the number of pay periods remaining in 2014. For example, divide by 25 if you are paid every two weeks and you complete this form on a date in January when there are 25 pay periods remaining in 2014. Enter the result here and on Form W-4, line 6, page 1. This is the additional amount to be withheld from each paycheck 9 $
Table 1 Table 2
Married Filing Jointly All Others Married Filing Jointly All Others
If wages from LOWEST Enter on If wages from LOWEST Enter on If wages from HIGHEST Enter on If wages from HIGHEST Enter on paying job are- line 2 above paying job are- line 2 above paying job are- line 7 above paying job are- line 7 above
$0 - $6,000 0 $0 - $6,000 0 $0 - $74,000 $590 $0 - $37,000 $590 6,001 - 13,000 1 6,001 - 16,000 1 74,001 - 130,000 990 37,001 - 80,000 990
13,001 - 24,000 2 16,001 - 25,000 2 130,001 - 200,000 1,11 0 80,001 - 175,000 1,110 24,001 - 26,000 3 25,001 - 34,000 3 200,001 - 355,000 1,300 175,001 - 385,000 1,300 26,001 - 33,000 4 34,001 - 43,000 4 355,001 - 400,000 1,380 385,001 and over 1,560 33,001 - 43 ,000 5 43,001 - 70,000 5 400,001 and over 1,560 43,001 - 49,000 6 70,001 - 85,000 6 49,001 - 60,000 7 85,001 - 110,000 7 60,001 - 75,000 8 110,001 - 125,000 8 75,001 - 80,000 9 125,001 - 140,000 9 80,001 - 100,000 10 140,001 and over 10
100,001 - 115,000 11 115,001 - 130,000 12 130,001 - 140,000 13 140,001 - 150,000 14 150 001 and over 15
Privacy Act and Paperwc rk Reduction Act Notice. We ask for the information on this You are not required to provide the information requested on a form that is subject to the form to carry out the Internal Revenue laws of the United States. Internal Revenue Code sections 3402(~(2) and 6109 and their regulations require you to provide this information; your employer uses it to determine your federal income tax withholding. Failure to provide a properly completed form will result in your being treated as a single person who claims no withholding allowances; providing fraudulent information may subject you to penalties. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation; to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws; and to the Department of Heal th and Human Services for use in the National Directory of New Hires. We may also disclose th is information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103.
The average time and expenses required to complete and file this form wil l vary depending on individual circumstances. For estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.
~ Employment
EDD Development Department
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This form can be used to manuall y compute your withholding allowances, or you can electroni ca ll y
compute them at www.taxes.ca.gov/de4.pdf
EMPLOYEE'S WITHHOLDING ALLOWANCE CERTIFICATE
Type or Print Your Full Name Your Socia l Security Number
Home Address (Number and Street or Rura l Route) Fi ling Status Withholding Allowa nces
D SINGLE or MARRIED (with two or more incomes) - C- i-ty-, -St-.at_e_, a_n_d_Z_l_P_C-od-e-- - ----------------1 D MARRIED (one income)
1. Number of a ll owances for Regular Withholding Allowances, Worksheet A
Number of a llowances from the Estimated Deductions, Worksheet B Tota l Number of Allowa nces (A + B) when using the Ca li forn ia Withholding Schedu les for 2014
OR
D HEAD OF HOUSEHOLD
2. Additiona l amount of state income tax to be withheld each pay period (if employe r agrees), Worksheet C OR
3. I certify unde r pena lty of perjury that I am not subject to Ca li forn ia withholding. I meet the conditions set forth under the Service Member Civil Re li ef Act, as amended by the Military Spouses Res idency Re li ef Act. (Check box here) 0
Under the penalties of perjury, I certify that the number of withholding allowances claimed on this certificate does not exceed the number to which I am entitled or, if claiming exemption from withholding, that I am entitled to claim the exempt status.
Signature --- - - --------- ------- - ------------- Date ______ _
Ernploye r's Name and Address California Employer Account Number
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - cut here - - - - - - - - - - - - - - - - - - - - - - - - - _____ _
Give the top portion of this page to your employer and keep the remai nder for your records.
YOUR CALIFORNIA PERSONAL INCOME TAX MAY BE UNDERWITHHELD IF YOU DO NOT FILE THIS DE 4 FORM.
IF YOU RELY ON THE FEDERAL FORM W-4 FOR YOUR CALIFORNIA WITHHOLDING ALLOWANCES, YOUR CALIFORNIA STA TE
PERSONAL INCOME TAX MAY BE UNDERWITHHELD AND YOU MAY OWE MONEY AT THE END OF THE YEAR.
PURPOSE: This certificate, DE 4, is for California Personal Income Tax (PIT) withholding purposes on ly. The DE 4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax w ithholding obligation.
You should comp lete this form if either:
(1) You claim a different marital status, number of regular allowances, or different additional dollar amount to be withheld for Californ ia PIT w ithholding than you claim for federal income tax w ithholding or,
(2) You cl aim additional allowances for estimated deductions.
THIS FORM WILL NOT CHANGE YOUR FEDERAL WITHHOLDING ALLOWANCES.
The federal Form W-4 is applicab le for Ca li fornia w ithholding purposes if you wish to claim the same marital status, number of regular allowances, and/or the same additional dollar amount to be withheld for state and federal purposes. However, federal tax brackets and withholding methods do not reflect state PIT withholding tables. If you rely on the number of withholding allowances you claim on your Form W-4 withholding allowance
certificate for your state income tax withholding, you may be significantly underwithheld. This is particularly true if your household income is derived from more than one source.
CHECK YOUR WITHHOLDING: After your Form W-4 and/or DE 4 takes effect, compare the state income tax withheld with your estimated total annual tax. For state withholding, use the worksheets on this form, and for federal withholding use the Internal Revenue Service (IRS) Publica tion 919 or federal withho lding ca lculations.
EXEMPTION FROM WITHHOLDING: If you wish to c lai m exempt, complete the federal Form W-4. You may claim exempt from withholding Ca lifornia income tax if you did not owe any federal income tax last year and you do not expect to owe any federal income tax this year. The exemption automatically expires on February 15 of the next year. If you continue to qualify for the exempt filing status, a new Form W-4 des ignating EXEMPT must be submitted before February 15. If you are not having federal income tax withheld this year but expect to have a tax liab ility next year, the law requires you to give your employer a new Form W-4 by December 1 .
DE 4 Rev. 42 (1- 14) (INTERNET) Page 1 of 4 cu
EXEMPTION FROM WITHHOLDING (continued): Under the Service Member Civil Relief Act, as amended by the Mil itary Spouses Res idency Relief Act, you may be exempt from Califo rnia income tax on your wages if (i) your spouse is a member of the armed forces present in Ca li forn ia in compliance with military orders; (ii ) you are present in California solely to be with your spouse; and (ii i) you maintain your domicile in another state. If you claim exemption under th is act, check the box on Line 3. You may be requ ired to provide r proof of exemption upon request.
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IF YOU NEED MORE DETAILED INFORMATION, SEE THE INSTRUCTIONS THAT CAME WITH YOUR LAST CALIFORNIA INCOME TAX RETURN OR CALL THE FRANCHISE TAX BOARD (FTB).
IFYOU ARE CALLING FROM WITHIN THE UNITED STATES 800-852-571 "I (vo ice) 800-822-6268 (TTY)
IF YOU ARE CALLI NG FROM OUTSIDE THE UNITED STATES (Not To ll Free) 916-845-6500
The California Employer 's Guide (DE 44) provides the income tax withholding tables . This publ ica tion may be found on the Emp loyment Development Department (EDD) website at www.edd.ca.gov/Payroll_ Taxes/Forms_ancl_Publications.htm. To ass ist you in ca lculating your tax liability, please visit the Franchise Tax Board website at www.ftb.ca.gov/individuals/index.shtml.
NOTIFICATION: Your employer is 1·equi red to send a copy of your DE 4 to the FTB if it meets either of the fol lowing two cond itions:
• You claim mme than 10 withholding all owances.
• You claim exemption from state or federal income tax withholding and your employer expects your usual weekly wages to exceed $200 per week.
IF THE IRS INSTRUCTS YOUR EMPLOYER TO W ITH HOLD FEDERAL INCOME TAX BASED ON A CERTAIN WITHHOLDING STATUS, YOUR EMPLOYER IS REQU IRED TO USE THE SAME W ITHHOLDING STATUS FOR STATE INCOME TAX W ITHHOLDING IF YOUR W ITHHOLDING ALLOWANCES FOR STATE PURPOSES MEET THE REQU IREMENTS LISTED UNDER "NOTIFICATION ." IF YOU FEEL THAT THE FEDERAL DETERMINATION IS NOT CORRECT FOR STATE W ITHHOLDING PURPOSES, YOU MAY REQUEST A REVIEW.
DE 4 Rev. 42 (1- 14) (I NTE RN ET)
To do so, write to:
W-4 Unit Fran chise Tax Board MS F180 P.O. Box 2952 Sacramento, CA 9581 2-2952 Fax : 9·16-843 -1094
Your letter shou ld contain the basis of your request for review. You will have the burden of showing that the federal determination is incorrect for state w ithholding purposes . The FTB w ill lim it its review to that issue. The FTB w ill notify both you and your employe1· of its findings. Your employer is then required to withhold state income tax as instructed by the FTB. In the event the FTB or the IRS finds there is no reasonable bas is for the number of w ithho lding exemptions that you claimed on your Form W-4/DE 4, you may be subject to a penalty.
PENALTY: You may be fined $500 if you fi le, with no reasonable bas is, a DE 4 that resul ts in less tax being withheld than is properl y al lowable. In add ition, criminal penalties apply fo r w ill fu lly supplying fa lse or fraudu lent information or fa ili ng to supply information requ iring an increase in withhold ing. Th is is prov ided for by Section 13101 of the Cali fornia Unemployment Insurance Code.
Page 2 of 4
INSTRUCTIONS - 1 - ALLOWANCES*
When determining your withholding allowances, you must consider your personal situation: - Do you claim allowances fo r dependents or blindness?
MARRIED BUT NOT LIVING WITH YOUR SPOUSE: You may check the "Head of Household" marita l status box if you meet illJ. of the fo ll owing tests:
- Will you itemize your deductions? - Do you have more than one income coming into the household?
('I ) Your spouse w ill not live w ith you at any time during the year; (2) You w ill furnish over half of the cost of mainta ining a home
for the entire year for yourself and you r child or stepchild who qualifies as your dependent; and TWO-EARNER/TWO-JOBS: When ea rnings are derived from more
than one source, underwithholding may occur. If you have a work ing spouse or more than one job, it is best to check the box "SINGLE
(3) You w ill fi le a separate retu rn for the year.
or MARR IED (with two or more incomes)." Figure the total number of allowances you are entitled to claim on al l jobs usi ng on ly one
HEAD OF HOUSEHOLD: To qua li fy, you must be unmarried or legally separated from your spouse and pay more than 50% of the
DE 4 fo rm . Cla im all owances with~ employer. Do D.Q1 claim the same allowances w ith more than one employer. Your withhold ing wi ll usuall y be most accurate when all al lowances are cla imed on the DE 4 or Form W-4 fil ed for the highest pay ing job and zero allowances are claimed for the others.
costs of maintaining a home for the entire year for yourself and your dependent(s) or other qualifying individuals. Cost of ma intaining the home includes such items as rent, property insurance, property taxes, mortgage interest, repairs, utilities, and cost of food. It does not include the individual's personal expenses or any amount which represents va lue of services performed by a member of the household of the taxpayer.
WORKSHEET A REG ULAR WITHHOLDING ALLOWANCES
(A) Allowance for yourself - enter 1
(B) Al lowance for your spouse (if not separately cla imed by your spouse} - enter 1 ••• •
(C} Al lowance for bli ndness -yourself - enter 1 •••••••••••••••••••••
(D) Allowance for blindness - your spouse (if not separately claimed by your spouse) - enter 1
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. (A}
. (B}
. (C}
. (D)
(E) Allowance(s) for dependent(s} - do not include yourself or your spouse •••• , , , , ••••••••••• (E)
(F) Tota l - add lines (A) through (E) above • • • • • • • • • • • (F)
INSTRUCTIONS - 2 -ADDITIONAL WITHHOLDING ALLOWANCES
If you expect to itemize deductions on your California income tax return, you can c laim additional w ithho lding allowances. Use Worksheet B to determ ine whether your expected est imated deductions may entitl e you to cla im one or more additional w ithholding allowances. Use last yea r's FTB Form 540 as a model to calculate this year's withholding amounts.
Do not include deferred compensation, qualified pension payments, or flexible benefits, etc., that are deducted from your gross pay but are not taxed on thi s worksheet.
You may reduce the amount of tax withheld from your wages by claimi ng one additional withhold ing allowance for each $1 ,000, or fraction of $ 1 ,000, by which you expect you r estimated deductions for the year to exceed your allowable standard deduct ion.
WORKSHEET B ESTIMATED DEDUCTIONS
1. Enter an estimate of your itemized deductions for Ca li fornia taxes for thi s tax year as li sted in the schedules in the FTB Form 540 •••••••• • •• •• •• ••• •••••••••••••• •••• •••
2. En ter $7,8 12 if married fil ing joint with two or more allowances, unmarried head of househo ld, or qua Hfying widow(er) with dependent(s) or $3,906 if single or married fi ling separately, dual income married, or married with mu ltip le employers • , •••• , •••••• , • , ••••••••••• , ••
3. Subtract li ne 2 from line 1, enter difference
4. Enter an estimate of your adjustments to income (a limony payments, IRA deposits)
5. Add li ne 4 to line 3, enter sum ••••••• , • , ••••••••••••• , •••••••••••••••
6. Enter an estimate of your nonwage income (d ividends, interest income, alimony receipts}
7. If line 5 is greater than line 6 (if less, see below); Subtract li ne 6 from line 5, enter difference •••
ll. Divide the amount on line 7 by $1,000, round any frnction to the nea rest whole number Enter this number on li ne 1 of the DE 4. Complete Worksheet C, if needed.
9. If li ne 6 is greater than line 5; Enter amount from line 6 (nonwage income)
I 0. Enter amount from line 5 (deductions) ••••
11 . Subtract li ne 10 from li ne 9, enter difference •••• Complete Worksheet C
1.
2.
3.
+ 4.
5.
6.
7.
8.
9. ~~~~~~~~~~
10. ~~~~~~~~~-
11. ~~~~~~~~~
*Wages paid to registered domestic partners w ill be treated the same for state income tax purposes as wages paid to spouses for Ca li forn ia Personal Income Tax _(P IT) withho lding and PIT wages. This law do~s not impact federa l income tax law. A registered domestic partner means an individual partner 111 a domestic partner relat1onsh1p w1th1n the mean ing of Section 297 of the Fam ily Code. For more information, please ca ll our Taxpayer Assistance Center Jt 888-745-3886.
DE 4 Rev. 42 (1-14) (INTERNET} Page 3 of 4
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WORKSHEET C TAX WITHHOLDING AND ESTIMATED TAX
·1. Enter estimate of tota l wages for lax year 20'! 4 • , • • • , , , ••• • •• , •••• , , • • • • • • • • • • • • 1. -···-----··----
2. Enter estimate of nonwage income (line 6 of Worksheet B) •• •• , ••••• • ••• •• ••• , • • • • • • • 2. __________ _
3. Adel li ne 1 and line 2. En ter sum • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 3. ------------
4. Enter itemized deductions or standard deduction (line ·1 or 2 of Worksheet B, whichever is la rgest) , , • • • • 4. -----------
5. Enter adjustments to income (line 4 of Worksheet Bl • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 5. __________ _
6. Adel l ine 4 and line 5. Enter sum , •• • , • , , , , • , • • , • , •• • • , , , • , • , , , •• , , , • • • • • 6. __________ _
7. Subtrac t li ne 6 from line 3. Enter difference , • •• , , , , , • , • • • • ••• , •• , , • • • • • • • • • • • 7. __________ _
8. Figure your tax liabil ity for the amount on line 7 by using the 20·14 tax rate schedules below • , • • , , • • • 8. __________ _
9. Enter personal exemptions (line F of Worksheet A x $11 6. 60) •••• • • ••• • •• •••• • • , ••• • • , 9. -----------
10. Subtract line 9 from line 8. Enter di fference • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 10. __________ _
11. Enter any tax credi ts. (See FTB Form 540) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ·11. __________ _
12. Subtract line 11 from line ·10. En ter difference. Th is is your total tax liability ••• , ••• , •• , , • • • • • • 12. -----------
13. Ca lculate the tax withheld and esti mated to be withheld during 20'! 4. Contact your em\Jloyer to reques t the amount that will be vv ithheld on your wages based on the marital status anc number of w ithholding allowances you will claim for 2014. Multip ly the estimated amount to be withheld by the number of pay periods left in the year. Add the total Lo the amount already withheld for 20 14 • • • • • • • 13. __________ _
14. Subtract line 13 from line ·12. Enter difference. If this is less than zero, you do not need to have add itional taxes w ithheld , • , , • , , • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ·14.
·15. Divide line 14 by the number of pay periods remain ing in the year. Enter this figure on line 2 of the DE 4 • • • 15. __________ _
NOTE: Your employer is not requi red to withhold the additional amount requested on li ne 2 of your DE 4. If your employer does not agree to w ithhold the additional amoun t, you may increase your w ithholdings as much as poss ible by using the "s ingle" status w ith "zero" allowances. If the amount w ithheld stil l results in an underpayment of state income taxes, you may need to fil e quarterly estimates on Form 540-ES w ith the FTB to avo id a penalty.
THESE TABLES A l~E FOR CAI.CU LA TING WORKSHEET C AND FOR 201 4 ONLY
SINGLE OR MARRIED WITH DUAL EMPLOYERS
IF Tl-IE TAXAB LE INCOME IS COMPUTED TAX IS
OVER BUT NOT OF AMOUNT PLUS* ~. , rn ~· ·- --- - ~
$0 $7,.582 ... 1.100% $0 $0.00 $7,582 $17,976 .. . 2.200% $7,582 $83 .40
$17,976 $28,371 ... 4.400% $17,976 $3 12.07 $28,37 1 $39,384 . 6.600% $2 8,371 $769.45 $39,384 $49,774 . 8.800% $39,384 $1,496.3 1 $49,774 $254,250 . . 10. 23 0% $49,774 $2, 410.63
$2.54,250 $3 0.5, 100 .. . 11.330% $254,250 $23,32 8.52 $305, 100 $508,500 ... ·12.430% $305, 100 $29,089 .83 $508,500 $1,000,000 .. . 13.530% $5 08,500 $54,372.45
$1,000,000 and over 14.630% $1,000,000 $120,872 .40
UNM1\RRIED HEAD OF HOUSEHOLD TAX PAYERS
IF TH E TAXABLE INCOME IS COMPUTED T1\X IS
OVER BUT NOT OF AMOUNT PLUS* OVER OVER ...
$0 $15,'174 ... 1.100% $0 $0.00 $15,'174 $35,952 .. . 2.200% $15, 174 $166.91 $35,952 $46,346 .. . 4.400% $35, 952 $624.03 $46,346 $57,359 ... 6.600% $46,346 $1,081.37 $57,359 $67,75 1 ... 8.800% $57,359 $ 1,808.23 $67,75 1 $345,780 ... 10.230% $67,75 '1 $2,722.73
$345,780 $414,936 ... 11 .33 0% $345,780 $3 1,'l 65 . l 0 $414,936 $69 1,560 ... 12.430% $414,936 $39,000.47 $69 1,560 $1,000,000 ... 13.53 0% $691,560 $73,384.83
$1,000,000 and over 14.630% $1,000,000 $ 115, 116.76
*m;1rgin;1I tax
MARRIED FILI NG JOINT 0 1~ QUALI FYING WIDOW(ERJ Tt\XPAY ERS
IF THE TAXABLE INCOME IS COMPUTED Tl\X IS
OVER BUT NOT OF AMOUNT PLUS* .:VER O\+fl~ .
$0 $15, 164 ... 1.100% $0 $0.00 $'15, 164 $35, 9.52 ... 2.200% $15, 164 $'166.80 $35,952 $56,742 . 4.400°!.> $35,952 $624.14 $56,742 $78,768 ... 6.600% $5 6,742 $1,538.90 $78,768 $99,584 ... 8.800'Y., $78,768 $2,992.62 $99,548 $508,500. 10.230'V., $99,5 48 $4,821.26
$508,500 $6 10,200 .. . 11.330% $5 08,500 $46,657.05 $610,200 $1,000,000 .. . 12.430% $6 10,200 $58, 179 .66
$1,000,000 $'1,017,000 ... 13.530% $1,000,000 $106,63 1.80 $ 1,01 7,000 and over 14.630% $1,01 7,000 $108,93 1.90
IF YOU NEED MORE DETAILED INFORMATION, SEE THE INSTR UCTIONS THAT CAME WITH YOU R LAST CALI FORN IA INCOME TAX l~ ETU R N OR CALL THE FTB:
IF YOU ARE CALLING FROM WITHIN THE UNITED STATES 800-852-5711 (voice) 800-il22-6268 (TTY)
IFYOU ARE CALLING FROM OUTSIDE THE UNITED STATES (NotToll Free) 916-il45-6500
The DE 4 information is co llected for purposes of admi nistering the PIT law and under the authority of Title 22, Californi a Code of Regulations, and the Revenue and Taxation Code, including Section ·18624. The Informati on Practices Act of ·1977 requ ires that individuals be noti fi ed of how in formation they provide may be used. Further in formation is contained in the instructi ons th at came w ith your last Ca liforni a income tax return . OE 4 Rev. 42 (1- 14) (INTERNET) Page 4 of 4