Payroll Taxes

Learn more about keeping your business compliant with payroll tax requirements.

California Income Tax Withholding Requirements

Employers in California must conform with these state rules relating to income tax withholding and administration.

General Withholding Requirement: California income tax must be withheld from wages paid to resident employees for services performed either within or without the state and from wages paid to nonresident employees for services performed in the state.

Employee Withholding Exemption Forms: California Form DE-4 may be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings, or the federal form can be substituted for state purposes in some circumstances. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings.

Reciprocal Agreements: None.

Administration:

Withholding Services and Compliance MS F182
Franchise Tax Board
P.O. Box 942867
Sacramento, California 94267-0651
Telephone: 888-792-4900

Local Tax Jurisdictions: San Francisco (employer payroll expense tax).

Category : Tax Center
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