If the employee is claiming Single, Married, or Head of Household use the appropriate table below and apply the following tax rates to annualized taxable wages to determine the annual tax amount:. Subtract the standard deduction shown in the Standard Deduction Table below from the result of step 6 to determine the taxable income. Determine the additional withholding allowance for itemized deductions (AWAID) by applying the following guideline and subtract this amount from the gross annual wages:ĪWAID = $1,000 x Number of Itemized Allowances Claimed for Itemized Deductions on DE-4. Note: If the employee uses additional allowances for estimated deductions to reduce the amount of salaries and wages subject to withholding, such allowances must not be used in the computation of the low income exemption (Step 5) or standard deduction (Step 7). If so, no income tax is to be withheld.ġNumber of regular allowances claimed on DE-4. Determine if the employee's gross salary and wages are less than or equal to the amount shown in the Low Income Exemption Table below. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages. Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages. Withholding Formula (Effective Pay Period 07, 2022) 
If less than 10, precede with a 0. If no allowances are claimed, enter 00.Įmployees who have not submitted a DE-4 will default to Single and zero (S00) allowances. If less than 10, precede with a 0. If no allowance are claimed, enter 00.ĭetermine the Additional Allowances Claimed field as follows:įirst and Second Positions - Enter the number of additional allowances claimed on the DE-4. Second and Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. Enter M (married), S (single), or H (head of household). S/M/H, Number of Regular Allowances, Number of Additional Allowancesĭetermine the Total Number of Allowances Claimed field as follows:įirst Position - Enter the employee's marital status indicated on the allowance certificate. No action on the part of the employee or the personnel office is necessary. The annual personal exemption credit has changed from $136.40 to $141.90.The Single, Married, and Head of Household income tax withholding tables have changed.The standard deduction for Married with 2 or more allowances and Head of Household has changed from $9,202 to $9,606.The standard deduction for Single and Married with 0 or 1 allowance has changed from $4,601 to $4,803.The low income exemption amount for Married with 2 or more allowances and Head of Household has changed from $30,534 to $31,831.
The low income exemption amount for Single and Married with 0 or 1 allowance has changed from $15,267 to $15,916.
The income tax withholdings formula for the State of California includes the following changes: TAXES 22-21, California State Income Tax Withholding
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