Understanding Payroll Deductions in California: What Employers and Employees Need to Know
In the dynamic landscape of California's employment laws, understanding payroll deductions is crucial for both employers and employees. Payroll deductions encompass various with holdings from an employee's wages, ranging from taxes to voluntary contributions. In this blog post, we'll delve into the essentials of payroll deductions in California , outlining key deductions, legal requirements, and best practices for compliance. Key Deductions: Federal Income Tax: Employers in California must withhold federal income tax from employee wages based on the information provided on Form W-4. State Income Tax: California imposes state income tax, and employers are required to withhold state income tax from employee wages based on the state's tax tables. FICA Taxes: FICA (Federal Insurance Contributions Act) taxes comprise Social Security and Medicare taxes. Employers and employees each contribute a percentage of wages toward these programs. State Disability Ins