Help Need guidance on CA witholding this year

[webjerry]

Hi Paul


Help

I have a problem on CA witholding in 2012. It is 0 when it should be $27.96 on biweekly pay of $1116.11 on 3 exemptions.

I can not get program to do correct state wtiholding.


What changed from 2011 and what did I need to do. I see the CA has regular pay and low income. I clicked on regular income and saved

but it still only gives me 0 state witholding.


I cannot find where there is help in the program

[Paul Mayer]

That calculation is correct when you Deduct the amount from the standard deduction table and the allowances from the exemption allowance table to get the taxable income from an employee with 3 exemptions.

You can work out the math yourself with the exact calculation method formula at this link:http://www.edd.ca.gov/pdf_pub_ctr/12methb.pdf

[webjerry]

What does the "dual income married" mean on your document link? Does it mean married and the couple both work? OR does it mean married with 2 jobs.

If I use dual income married, there is some state tax, but if I use married then there is none. Our scenario is the couple both work and one of them is our employee and
the withholding is 3.

Another question is that:
With the same data, with 2011 Zpay , we get state tax CA to be around $10 . So doesn it mean 2012 CA state tax payroll tax calculation has some significant changes?

Thanks

[Paul Mayer]

That is from the CA forms that you have the employees fill out on what they desire to claim. "Dual Income Married" would be that both spouses are working and want more taxes deducted. California did change their tax tables again this year like most states did, some brackets went up and others down. We always have the current tax tables in our updates and all downloads, you just need to insure that you use the update checker to insure that you install the latest releases as they become available.

[webjerry]

Hi Paul

I have a senario I tried out and should not be Zero

Dual income Married W4 has 3 Allowences
Bi-Weekly pay

Total pay 1116.11
From the EDD Page you sent me to

$1116.11-$145=$971.11 From Standard Deduction table: Table (3)

$971.11-$668=$303*.044=$13.33
$13.33+$11.59=$24.92 From table (5)

$24.93-$12.95=$11.98 State Witholding amount

But Paywindow2012 10.0.17 was zero

[Paul Mayer]

Hi Paul

I have a scenario I tried out and should not be Zero

Dual income Married W4 has 3 Allowances
Bi-Weekly pay

Total pay 1116.11
From the EDD Page you sent me to

$1116.11-$145=$971.11 From Standard Deduction table: Table (3)

$971.11-$668=$303*.044=$13.33
$13.33+$11.59=$24.92 From table (5)

$24.93-$12.95=$11.98 State Withholding amount

But Paywindow2012 10.0.17 was zero

You just need to understand how the formula works. Seriously, we have about 1.000 plus CPA's in California using PayWindow and they check all calculations. PayWindow first converts the pay to an annual salary and then does all of the calculations. Below is the correct method of using the formula:
1116.11 * 26 = 29,018.86
29,018.86 - (1,000.00 * 3) = 26,018.86 (3 allowances)
26,018.86 - 7,538 = 18,480.86 (2 or more allowances on DE4 or W4)
Taxable wages 18,480.86
From Married table 14,632 - 34,692 range:
(18,480.86 - 14,632) = (3,848.86 * 2.2%) = 84.67 + 160.95 = 245.62 (Table 5 Exact Calculation for Annual Wages)
(245.62 - 336.60) = -93.98 ( 3 3 exemptions from Table 4)
At this point we would divide that by the number of pay periods but since it is a negative number it becomes zero.