As part of the recently-enacted California Assembly Bill No. 17, signed by Governor Arnold Schwarzenegger on July 29, 2009, the withholding rates will increase effective for wages paid after October 31, 2009. The wage withholding tables will be adjusted so that the amount to be withheld will be ten percent more than the sum that is calculated under the current withholding tables. Withholding on supplemental wages will increase from 6% to 6.6% and withholding on stock options and bonus payments will also increase from 9.3% to 10.23%. Changes were also made to the percentage of total estimated taxes that must be paid each quarter beginning in 2010.
Vision Payroll strongly recommends that California taxpayers consult their tax advisor to ensure that the proper amount of withholding tax be calculated and to calculate any adjustment to the number of withholding allowances claimed.
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