Revised California State Income Tax Tables

To: UCSC Community

From: UCSC Payroll Office

As a result of the current state budget, the California Employment Development Department (EDD) recently issued revised personal income tax tables which increase personal income tax withholding applicable to earnings paid on or after January 1, 2009. The new rates represent a one quarter of one percent (.0025) increase in the old tax rates. For example, if the old rate was 1.0%, the new rate is 1.25%.

In order to accommodate the rate changes, the Payroll Personnel System (PPS) has to reprogram the tax table structure to accommodate an additional data space that the new tax rates require. The revised rates apply to all earnings in 2009, beginning January 1, 2009, and it is possible that you may owe taxes at the end of the year.

To determine if you will need to increase the amount of state tax withheld in order to avoid owing taxes at the end of the year, please review the California State Form DE-4 "Employee Withholding Allowance Certificate" available at:

This form includes instructions about estimating state income tax liability on an annual basis using the new tax rates.

If you determine that you will not have enough state income tax withheld, you can increase the amount of your state income tax withholding by:

. Reducing the number of exemptions you claim for state purposes, or

. Having extra money deducted for state income taxes from your paycheck.

You can change your state tax withholding online by signing in to your personal account on At Your Service at:

For additional information about California personal Income Tax, go to the Franchise Tax Board website at:

For more information about the new tax rates or for copies of the withholding schedules, go to the EDD website at: