W-4 Form Requirements in the state of California

Each person that is earning a wage in the state of California, regardless of where they actually live, or living in California, regardless of where they earn their wage, must pay state income taxes, in addition to federal income taxes. This is good to know, but, how much should be withheld from each person’s income for state income taxes? Relax, there is a very simple form to help each employer determine that.

In addition to the federal income tax withholding form, W4, each employee needs to fill out a California State income tax withholding form, DE-4. This form has essentially the same information on it, but makes sure you have the correct notations for looking up how much needs to be withheld from each – such as single/married with dual employers, married filing joint/widow, or head of household. In some cases, a federal W-4 form can be used in the place of a California State DE-4 form, but it is recommended to have both on file.

And finally, please take note! If no income tax withholding form is filled out, taxes must be withheld at the highest level possible – single, no exemptions – even if the employee is known to be married. To prevent things like this from happening, I cannot stress the importance of having each employee file a state withholding form DE-4 as well as a federal Form W-4 enough, so please make their completion a priority.

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