DeltaFlex Payroll System

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1 DeltaFlex Payroll System Tax Table Information - California Date: 11/13/2008 Information source(s): Websites: State of California Employment Development Department Employee Entry and Tax Table Information for 2009 California Income Tax Withholding California income tax withholding amounts will change effective January 1, This document covers the changes you need to make in your Payroll system in order calculate the proper tax withholding amounts. Section 1 - General settings for the Payroll system to ensure it accommodates California s system of using multiple tax tables. Section 2 - Steps to implement the changes to standard deduction amounts and tax tables and rates. Section 3 - Steps regarding SDI / Worker s Comp. settings that are common to all the different tax tables. Section 4 - Changes to additional deduction/exemption amounts for employees. No matter which tax tables are used for an employee, be sure to also follow these steps as well. These California changes should be entered into your system before the first Payroll for 2009, or as soon as possible thereafter. Should you discover different or updated information through your own research, the DeltaFlex Support team would appreciate hearing from you. The questions and prompts listed below are in the order that they appear within the software. Answers are supplied here only if the information was clearly provided by the information source noted above. (Information on Worker s Comp. is especially difficult to obtain. In cases where we could find no information on a certain item, we have listed??? as the answer. Check with the state labor bureau for information.) 2010 Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 1

2 Section 1 - General Settings for the Payroll System California uses multiple tax tables to calculate the proper state income tax withholding amount. In order for the Payroll system to accommodate this, be sure the following system control option is set correctly. (In most cases, your Payroll system will already be set this way, unless this is the first time you are setting up the Payroll system for withholding in this state.) From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #2 System Control Options. Accept the existing, default answer for the first nine questions, until you arrive at a question asking the following: Will there be any time when an employee would pay state withholding taxes to one state, but use another state s tax tables to compute the withholding tax? Be sure to answer Y for yes. (The separate tax tables used by this state are treated as if they are each a separate state, hence the reason for this answering this question this way.) Accept the existing, default answer for the remaining system control options Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 2

3 Section 2 - Changes to Tax Tables and Rates Next, proceed with updating all the tax tables presented in this section. The next section of this document (section 3, next-to-last page) contains additional questions that are asked when editing each of the tax tables. This information is the same for all the tax tables, thus we are printing it only once, in its own section. Tax Table Information for 2009 California Income Tax Withholding Tax Table CA - California From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #9 Tax Tables. Next, select the number for this state s tax table. Full Name of Table: California 2-Letter Abbreviation: CA Type of Table: 1 - state Enter your State Identification Number. Federal Tax Liability is: 3 - not included Should the tax amount be rounded to the nearest dollar?: N Date this table was created or modified: 11/13/08 Number of deductions needed before single person can use the married tax table: 70 Standard deduction amount for the married table: 7384 Standard deduction amount for the single table: 3692 Is there a deduction amount in addition to the standard deduction amount?: Y Enter the number for the first method: 1 Enter the number for the second method: 0 Enter the number for the third method: 0 Enter the number for the first after method: 2 Enter the number for the second after method: 0 Does this table have a maximum limit on the taxable gross in any 1 year?: N Maximum taxable gross amount for state unemployment: Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 3

4 California Tax Table for Employees filing MARRIED Brk Maximum $ #1 14, #9 #2 33, #10 #3 53, #11 #4 74, , #12 #5 94, , #13 #6 999,999.99* 4, #14 #7** 88, #15 #8 #16 Tax % Brk Maximum $ Tax % * NOTE This maximum should be $1,000,000.00, but the DeltaFlex Payroll system will not accept a number this high. Because it is unlikely any of your employees will have taxable income of $1,000,000.00, using $999, as the maximum should not result in any miscalculation. ** NOTE Because of the system limitation with the previous bracket, this bracket should not be entered at all. The only time this bracket would be used is for an employee with taxable income of over $1,000, California Tax Table for Employees filing SINGLE (also Dual-Income Married, or Married with Multiple Employers) Brk Maximum $ #1 7, #9 #2 16, #10 #3 26, #11 #4 37, #12 #5 47, , #13 #6 999,999.99* 2, #14 #7** 90, #15 #8 #16 Tax % Brk Maximum $ Tax % * NOTE This maximum should be $1,000,000.00, but the DeltaFlex Payroll system will not accept a number this high. Because it is unlikely any of your employees will have taxable income of $1,000,000.00, using $999, as the maximum should not result in any miscalculation Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 4

5 ** NOTE Because of the system limitation with the previous bracket, this bracket should not be entered at all. The only time this bracket would be used is for an employee with taxable income of over $1,000, The remaining on-screen questions are covered in Section 3, on the next-to-last page Marketron Broadcast Solutions Updated: 9/3/2010 Page 5

6 Tax Table Information for 2009 California Income Tax Withholding Tax Table C1 Calif. H of H From the Payroll System Editor, select #8 Other Changes to the Payroll System. Then select #9 Tax Tables. Next, select the number for this state s tax table. Full Name of Table: Calif. H of H 2-Letter Abbreviation: C1 Type of Table: 1 - state Enter your State Identification Number. Federal Tax Liability is: 3 - not included Should the tax amount be rounded to the nearest dollar?: N Date this table was created or modified: 11/13/08 Number of deductions needed before single person can use the married tax table: 0 Standard deduction amount for the tax table: 7384 Is there a deduction amount in addition to the standard deduction amount?: Y Enter the number for the first method: 1 Enter the number for the second method: 0 Enter the number for the third method: 0 Enter the number for the first after method: 2 Enter the number for the second after method: 0 Does this table have a maximum limit on the taxable gross in any 1 year?: N Maximum taxable gross amount for state unemployment: Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 6

7 California Tax Table for Employees filing HEAD OF HOUSEHOLD Brk Maximum $ #1 14, #9 #2 33, #10 #3 43, #11 #4 54, #12 #5 64, , #13 #6 999,999.99* 2, #14 #7** 89, #15 #8 #16 Tax % Brk Maximum $ Tax % * NOTE This maximum should be $1,000,000.00, but the DeltaFlex Payroll system will not accept a number this high. Because it is unlikely any of your employees will have taxable income of $1,000,000.00, using $999, as the maximum should not result in any miscalculation. ** NOTE Because of the system limitation with the previous bracket, this bracket should not be entered at all. The only time this bracket would be used is for an employee with taxable income of over $1,000, The remaining on-screen questions are covered in Section 3, on the next-to-last page Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 7

8 Section 3 - SDI/Worker s Comp. Questions for each Tax Table These are the remaining questions asked for each tax table. How is the SDI / Worker's Comp. Employee Withholding Calculated?: 2 - % multiplied by $ amount Enter the percentages or flat amounts as supplied by your state for all of the Worker's Comp categories that you have set up. Remember that these amounts are for the employee portion of the withholding. Brk Category Name Percentage Brk Category Name # #9 #2 #10 #3 #11 #4 #12 #5 #13 #6 #14 #7 #15 #8 #16 Percentage Maximum taxable amount for SDI / Worker's Comp, if any: 90,669 Is 401k exempt from this state withholding?: Y Are Cafeteria Plans exempt from this state withholding?: Y Is 401k exempt from unemployment in this state?:??? Are Cafeteria Plans exempt from unemployment in this state?:??? Is 401k exempt from SDI / Worker's Comp. in this state?:??? Are Cafeteria Plans exempt from SDI / Worker's Comp. in this state?:??? 2010 Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 8

9 Section 4 - Changes to Additional Deduction/Exemption s Some of California s additional deduction/exemption amounts for employees have also changed. No matter which tax table is used for an employee, be sure to follow these steps to implement these deduction/exemption changes. These steps involve making changes to each employee record. After completing changes to all the applicable tax tables, follow these steps to make the changes for each employee. We recommend you start by printing the List of Employees, Short Version to use as a checklist to ensure you change all appropriate employees. From the Payroll System Editor, select #1 Enter/Change/Delete Employee Records. Enter the employee number. Then, select #4 Tax Information. When you come to the following prompts, enter the appropriate amounts. Screen prompt for first additional deduction/exemption amount: California has a deduction/exemption amount which is a flat rate amount If the employee is filing o o Single (also Dual-Income Married, or Married with Multiple Employers), or Married, claiming 0 or 1 allowances the deduction amount is: 3692 If the employee is filing o o Married, claiming 2 or more allowances, or Unmarried Head of Household the deduction amount is: 7384 Screen prompt for second additional deduction/exemption amount: California has a deduction/exemption amount which is multiplied by the number of exemptions claimed by the employee The employee deduction amount is: Marketron Broadcast Solutions help@marketron.com Updated: 9/3/2010 Page 9