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California Revises the Withholding Schedules for 2009
Article ID: 1012347
Overview
The California Employment Development Department has published an April 2009 revision to the California PIT Withholding Schedules for 2009. The updated PIT Withholding Schedules are effective January 1, 2009.
The agency is communicating that the revised PIT Withholding Schedules will increase the withholding tax calculations by a rate of 0.25%, for each wage bracket. This change is based on the Governor?s 2009-10 Budget approved by the Legislature and signed by Governor Schwarzenegger in February 2009. No adjustments are necessary, nor are required by the agency, for tax withheld prior to using the updated calculations. The agency is requesting that employers begin using the revised PIT Withholding Schedules as soon as possible.
Information
Frequently Asked Questions
How do I know if I?m affected?
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.
When will these changes be available in QuickBooks?
Intuit QuickBooks Payroll will modify the withholding tax tables in the next Payroll Update, #20911, to be released on Thursday, April 23, 2009.
What do I need to do?
You will need to download and install Payroll Update #20911 as soon as it is released so the correct amount of California withholding taxes 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. For more information on how to download and install a Payroll Update, click here.
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. If the employee(s) chooses to adjust their future withholding tax, they will need to complete a new Form W-4 or Form DE 4 for state withholding.
What if I subscribe to the Disk Delivery service?
The next Disk Delivery is scheduled for early May 2009. If you have internet access, you may want to download Payroll Update #20911. For more information on how to download and install a Payroll Update, click here.
