Have a Tax Question? Ask a Tax Expert
Your withholding depends on how you filed W-4 and DE-4 forms.
Assuming you are single and claimed two allowanced on W-4 and DE-4 forms - your monthly paycheck should be:
Monthly Gross $3,068.00 Federal $265.78 Social Security $190.22 Medicare $44.49 California $77.02 CA SDI $33.75 Net Pay $2,456.74
Yes - that is true - under ABX4-17, starting Nov 1, 2009, there will be new state income tax withholding table to increase by 10% the amount of income taxes withheld.
For stock options and bonus payments - the withholding rate increases from 9.3% to 10.23%.
So - considering the example above - you may expect California withholding to increase from $77.02 to $84.72 - so that will be not such large impact as somebody told you...
In additional to that - under ABX4-18X starting Jan 1, 2010, there will be 7% California backup withholding for certain payments to non-employees (i.e. independent contractors) where back-up withholding is otherwise generally required under the Internal Revenue Code.
Please be aware - that actual tax rates are not changed - in case withholding is more than your actual tax obligations - at the tax time you will get larger refund.
Let me know if you need any clarification.
Here is an ARTICLE with more details