LOS ANGELES UNIFIED SCHOOL DISTRICT POLICY BULLETIN

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Transcription:

TITLE: NUMBER: Withholding for State Income Tax BUL-771.4 ROUTING All Schools and Offices Administrators Time Reporters ISSUER: Luis Buendia, Controller DATE: February 8, 2016 POLICY: MAJOR CHANGES: GUIDELINES: To provide employees with information regarding current Withholding Table for State Income Tax for the 2016 calendar year. This revision replaces Bulletin No. 771.3 of the same subject issued on February 24, 2015. The content reflects changes in the withholding tables for State Income Tax for the 2016 calendar year. Administrators are requested to post this bulletin at their site or provide a copy of this bulletin to each employee. The following guidelines apply: I. BACKGROUND Effective January 1, 2016, withholding tables for State Income Tax were revised to reflect the continued indexing of personal income tax brackets. The District uses a withholding table based on the monthly payroll period withholding table in the Employer s Tax Guide as published by the State of California Employment Development Department. II. FORM DE-4 (EMPLOYEE S STATE WITHHOLDING ALLOWANCE CERTIFICATE) Employees who wish to increase or decrease the amount of State tax withheld while leaving their Federal tax withholding the same must file Form DE-4 (LAUSD version). This form is available from Payroll Support Services or may be downloaded from the Payroll Administration website, w2/taxinfo. Form DE-4 must be received by the Payroll Administration Branch by the first Thursday following an employee s regular payday to be in effect for the next payday. Employees are to carefully complete and sign Form DE-4. An incomplete Form DE- 4 will be returned to the employee. Form DE-4 may also be completed on line at htpps://selfservice.lausd.net/irj/portal. Instructions on how to view and update withholdings for DE-4 via Employee Self Service is available in Payroll Administration website, LAUSD My Pay. Failure to complete Form DE-4 to accurately reflect an employee s allowances may result in overwithholding or underwithholding of tax from salary payments. Any excess BUL-771.4 Page 1 of 6 February 8, 2016

withholding due to an inaccurate DE-4, cannot be refunded by the District. III. COMPUTATION OF WITHHOLDING FOR STATE INCOME TAXES State withholding taxes are computed in the following manner: A. If an employee s gross pay period salary is equal to or less than the amount shown below, no state income tax is withheld. State Tax Table 1 Low Income Exemption Table Monthly 0 or 1 2 or more Single $1,118.00 $1,118.00 Married $1,118.00 $2,237.00 Head of Household $2,237.00 $2,237.00 State Tax Table 1 Low Income Exemption Table Semi-Monthly 0 or 1 2 or more Single $559.00 $559.00 Married $559.00 $1,118.00 Head of Household $1,118.00 $1,118.00 B. Basic Computation of Withholding for State Income Tax 1. Subtract from the gross pay period salary any tax-deferred retirement contribution, flexible spending plan amount, tax-sheltered annuity, or tax-deferred mutual fund to arrive at the taxable gross pay period salary. 2. Subtract the appropriate standard deduction amount (see Table 3) from the taxable gross pay period salary. 3. If an employee is eligible for additional allowances for itemized deductions, the appropriate amount (see Table 2) is also subtracted. 4. Using the taxable gross salary, the gross tax is computed using State Tax Table 5. BUL-771.4 Page 2 of 6 February 8, 2016

State Tax Table 3 Standard Deduction Monthly 0 or 1 2 or more Single $337 $337 Married $337 $674 Head of Household $674 $674 State Tax Table 3 Standard Deduction Semi-Monthly 0 or 1 2 or more Single $169 $169 Married $169 $337 Head of Household $337 $337 Monthly State Tax Table 2 Additional Withholding Allowances Table 1 2 3 4 5 6 7 8 9 10* $83 $167 $250 $333 $417 $500 $583 $667 $750 $833 Semi-Monthly State Tax Table 2 Additional Withholding Allowances Table 1 2 3 4 5 6 7 8 9 10* $42 $83 $125 $167 $208 $250 $292 $333 $375 $417 * For allowances greater than 10, multiply the total number claimed by $83. BUL-771.4 Page 3 of 6 February 8, 2016

Single Person - If the taxable gross is: State Tax Table 5 - Tax Rate Table Monthly Payroll Period $0 $654 $0.00 1.10% $0 654 1,550 7.19 2.20% 654 1,550 2,448 26.90 4.40% 1,550 2,448 3,398 66.41 6.60% 2,448 3.398 4,294 129.11 8.80% 3,398 4,294 21,936 207.96 10.23% 4,294 21,936 26,322 2,012.74 11.33% 21,936 26,322 43,870 2,509.67 12.43% 26,322 43,870 83,334 4,690.89 13.53% 43,870 83,334 AND OVER 10,030.37 14.63% 83,334 Married Person - If the taxable gross salary is: $0.00 $1,308 $0.00 1.10% $0.00 1,308 3,100 14.39 2.20% 1,308 3,100 4,896 53.81 4.40% 3,100 4,896 6,796 132.83 6.60% 4,896 6,796 8,588 258.23 8.80% 6,796 8,588 43,872 415.93 10.23% 8,588 43,872 52,644 4.025.48 11.33% 43,872 52,644 83,334 5,019.35 12.43% 52,644 83,334 87,740 8,834.12 13.53% 83,334 87,740 AND OVER 9,430.25 14.63% 87,740 Head of Household - If the taxable gross salary is: $0.00 $1,310 $0.00 1.10% $0.00 1,310 3,102 14.41 2.20% 1,310 3,102 3,998 53.83 4.40% 3,102 3,998 4,948 92.25 6.60% 3,998 4,948 5,846 155.95 8.80% 4,948 5,846 29,832 234.97 10.23% 5,846 29,832 35,798 2,688.74 11.33% 29,832 35,798 59,664 3,364.69 12.43% 35,798 59,664 83,334 6,331.23 13.53% 59,664 83,334 AND OVER 9,533.78 14.63% 83,334 BUL-771.4 Page 4 of 6 February 8, 2016

Single Person - If the taxable gross is: State Tax Table 5 - Tax Rate Table Semi-Monthly Payroll Period $0 $327 $0.00 1.10% $0 327 775 3.60 2.20% 327 775 1,224 13.46 4.40% 775 1,224 1,699 33.22 6.60% 1,224 1,699 2,147 64.57 8.80% 1,699 2,147 10, 968 103.99 10.23% 2,147 10,968 13,161 1,006.38 11.33% 10,968 13,161 21,935 1,254.85 12.43% 13,161 21,935 41,667 2,345.46 13.53% 21,935 41,667 AND OVER 5,015.20 14.63% 41,667 Married Person - If the taxable gross salary is: $0.00 $654 $0.00 1.10% $0.00 654 1,550 7.19 2.20% 654 1,550 2,448 26.90 4.40% 1,550 2,448 3,398 66.41 6.60% 2,448 3,398 4,294 129.11 8.80% 3,398 4,294 21,936 207.96 10.23% 4,294 21,936 26,322 2,012.74 11.33% 21,936 26,322 41,667 2,509.67 12.43% 26,322 41,667 43,870 4,417.05 13.53% 41,667 43,870 AND OVER 4,715.12 14.63% 43,870 Head of Household - If the taxable gross salary is: $0.00 $655 $0.00 1.10% $0.00 655 1,551 7.21 2.20% 655 1,551 1,999 26.92 4.40% 1,551 1,999 2,474 46.63 6.60% 1,999 2,474 2,923 77.98 8.80% 2,474 2,923 14,916 117.49 10.23% 2,923 14,916 17,899 1,344.37 11.33% 14,916 17,899 29,832 1,682.34 12.43% 17,899 29,832 41,667 3,165.61 13.53% 29,832 41,667 AND OVER 4,766.89 14.63% 41,667 BUL-771.4 Page 5 of 6 February 8, 2016

5. Subtract the correct tax credit amount (see Table 4) from the gross tax. The remaining tax amount is withheld from the employee s salary payment. State Tax Table 4 - Tax Credit Table Monthly Exemption Claimed Single, Married or Head of Household 0 1 2 3 4 5 6 7 8 9 10* 0 $9.99 $19.98 $29.98 $39.97 $49.96 $59.95 $69.94 $79.93 $89.93 $99.92 State Tax Table 4 - Tax Credit Table Semi-Monthly Exemption Claimed Single, Married or Head of Household 0 1 2 3 4 5 6 7 8 9 10* 0 $5.00 $9.99 $14.99 $19.98 $24.98 $29.98 $34.97 $39.97 $44.96 $49.96 *If the number of allowances claimed exceeds 10, the amount of tax credit allowed can be determined by multiplying the amount for one allowance by the total number of allowances. AUTHORITY: This is a policy of the. ASSISTANCE: For additional information regarding tax rates, please call your local Franchise Tax Board Office or your tax advisor. The Payroll Services Branch staff is not authorized to provide tax advice. BUL-771.4 Page 6 of 6 February 8, 2016