Tax Tips
Using Form DE-4 to adjust California State Income Tax Withholding
As this year's tax season comes to a close, we thought it
appropriate to offer a helpful tip to better prepare you and your
clients for next year.
Employees must
complete a Form W-4 for Federal tax withholding purposes.
Unfortunately, employers typically use the information provided on the
federal Form W-4 to calculate California state personal income tax
withholding as well. This can result in under withholding and
significant year-end tax bills.
Rather than face this unwelcome scenario, employees may elect to
provide more accurate information by completing a California state Form
DE-4. The DE-4 acts as the "Employee's Withholding Allowance
Certificate", which establishes separate and more accurate with holding
for personal state income taxes.
The form is available for download: DE4 Form
Right-click on the above link and select "Save this link as" to save the PDF file on your disk.
