CA 2009 Revised Withholding Schedules

The California Employment Development Department has published an April 2009 revision to the California Personal Income Tax (PIT) Withholding Schedules for 2009.

The updated PIT Withholding Schedules are effective January 1, 2009. Intuit QuickBooks Payroll released Payroll Update 20911 on April 23, 2009 to implement these changes.

The revised PIT Withholding Schedules will increase the withholding tax calculations by 0.25% for each wage bracket.

No adjustments are necessary or required by the agency for tax withheld prior to using the updated calculations, although the agency is requesting that employers begin using the revised PIT Withholding Schedules as soon as possible.

You may be affected if you currently withhold California income taxes from employees and make withholding tax payments in the State of California or if you currently have a valid California Employer Account Number.

Intuit QuickBooks Payroll will modify the withholding tax tables in the next Payroll Update 20911, released Thursday, April 23, 2009.

You will need to download and install Payroll Update 20911 as soon as it is released so the correct amount of California withholding tax will be calculated and withheld from employee paychecks from that date forward.

If you have Automatic Updates turned on and have selected all updates to download automatically, your QuickBooks software will download and install the update for you.

If you do not have Automatic Updates turned on, you can download this payroll update manually.

Since withholding tax calculations do not self-adjust in QuickBooks and the revised PIT Withholding Schedules will increase the state withholding tax, you may want to ask your employee(s) if they want to adjust their withholding tax on future payroll checks.

Any employee who chooses to adjust future withholding tax will need to complete a new Form W-4 or Form DE 4 for state withholding.

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