05 January 2018

California 2018 income tax withholding tables released

The California Employment Development Department (EDD) has issued the wage-bracket and percentage method withholding tables for calendar year 2018 to its website.

Tables continue to include the voter-approved extension on personal income tax increase

The 2018 tables continue to include the extension of the personal income tax on high wage earnings; approved by California voters on November 8, 2016, that was originally approved by voters in 2012 (Proposition 30) and was effective retroactively to January 1, 2012. Originally scheduled to expire at the end of calendar year 2018, 2016 Proposition 55 extended the expiration date for the tax increase to the end of calendar year 2030.

Had Proposition 55 not been approved, these tax rates were scheduled to revert back to the pre-2012 rate of 9.3% in 2019.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services — Employment Tax Advisory
Debera Salam(713) 750-1591
Kristie Lowery(704) 331-1884
Kenneth Hausser(732) 516-4558
Debbie Spyker(720) 931-4321

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ATTACHMENT

EY Payroll News Flash

Document ID: 2018-0030