Need Help with California PIT and Appropriate State Tax Table

[gorilla]

I have two employees that I pay on a monthly basis in California (they make around 1,000 to about 1,200 a month), and there is never any PIT (Personal Income Tax) calculated.

I am beginning to worry that there should be at least SOME PIT calculated.

1) am I supposed to be using the California Low Income tax table in the Deductions / Taxes -> State Tax field? (I thought the cutoff is one million dollars anually... am I wrong about this???)

2) On the monthly pay period reports I see State Tax being withheld, (Under Reports -> Pay Periods -> Normal 80) but no California Employment Training Tax listed.

But when I look at my Tax Reports, it shows California Training Tax, but it doesn't show any California Personal Income Tax.

On the Pay Period Reports where it says state tax, is that supposed to refer to Employment Training Tax? Or is that supposed to be the California Personal Income Tax?

As best as I can tell when looking at the schedules, my employees should be paying a dollar or two in Personal Income Tax each month, but it never shows anything on the line that says: State California.

Thanks in advance.

[Paul Mayer]

It depends on the taxable ways after exemptions. An example is a single person set to monthly and claiming ZERO exemptions earning $1,000.00 the tax is $7.58

If they claim only one exemption that reduces the taxable wages and the tax is $0.00.

I have a feeling all is working correctly if they are paid that little in a month.

[gorilla]

It depends on the taxable ways after exemptions. An example is a single person set to monthly and claiming ZERO exemptions earning $1,000.00 the tax is $7.58

If they claim only one exemption that reduces the taxable wages and the tax is $0.00.

I have a feeling all is working correctly if they are paid that little in a month.

Well, that's the thing...

On the individual transactions, I see state tax listed as: $2.84

Is that for the California Employment Training Tax?

Or the California Personal Income Tax?

Here are the figures for ONE MONTH (the employee gets paid monthly)

The employee is single and has no exemptions (they work a second job somewhere else as well)

Earnings: $1,220
Commission: $143.98

Federal Tax ($137.41)
Fica ($84.57)
Medicare ($19.78)
State Tax (2.84)
SDI ($12.28)

Net Pay: $1,107.10

Assuming the state tax means Employment Training Tax, should there be some sort of Personal Income Tax appearing somewhere for this month?


thanks in advance.

[Paul Mayer]

I know where you confusion is, the Training Tax is an employer's tax and is NOT displayed when paying or on the Employee Reports, it is shown on the Employer Totals report and in the Tax liability Report.

[gorilla]

I know where you confusion is, the Training Tax is an employer's tax and is NOT displayed when paying or on the Employee Reports, it is shown on the Employer Totals report and in the Tax liability Report.

Ok, if that is the case, then the $2.84 that is listed as State Tax on the Transaction is for Personal Income Tax (PIT), right?

If so, then why do my Tax Reports -> Tax Liability NOT show any amount for Personal Income Tax (PIT)?

There is just a blank space after the words State Tax on the tax reports.

Do I have to pay extra to get PIT printed on my Tax Liability report? Why would SUTA, SDI, and CA ETT show but not CA PIT?

[Paul Mayer]

Send me a backup of your company database referring this message thread and I will see if I can spot the problem you have there.

Please see the instructions at this link to send us your database:

http://zpay.com/vbulletin/showthread.php?1449-How-to-Send-us-your-Backup-Database


Thanks,

Paul

[gorilla]

Send me a backup of your company database referring this message thread and I will see if I can spot the problem you have there.

Please see the instructions at this link to send us your database:

http://zpay.com/vbulletin/showthread.php?1449-How-to-Send-us-your-Backup-Database


Thanks,

Paul

Hi again, Paul:

I just send the database off to you (in the first email, I forgot to attach the database file though, but the second one has it attached).

One other thing I just remembered: I don't think I did the end of year maintenance on this database. Could that be causing this (or other) problems?

Anyway, thank you in advance for taking a look at the database.

[Paul Mayer]

End of year is an optional thing to prune the database so not that has nothing to do with any problems. If this is "Mark", I received one email but nothing with the database attached.

[Paul Mayer]

I received your database and I just set the date to your last payroll of July 31st and printed three reports the Normal 80 the Employers Totals and the Tax Liability report and set that to the 3rd Quarter as you had it set to the 2nd Quarter and all three align with the expected $2.50 for State Income Tax. It is doing what it should be doing.

You also have the employees set to use the Low Income Employees California tax tables which also reduces the withholding. Just to give you an example, employee number 0032 that had $2.50 SIT withheld if you used the Standard Employees Tax Tables, I just ran a test and the SIT is $14.91 for the same Earnings and Commission of $1,116.43.