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| Forms to use | |
DE-4 California Employee Allowance Certificate |
| How often? |
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Required for each employee
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How to complete
DE-4 |
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Each employee should complete the front of the DE-4 form and Worksheet A.
Worksheet B only needs to be completed if the employee has larger deductions than
the standard deductions. For most people, the largest deductions are their mortgage interest
and alimony. So a rough way to complete this worksheet is to take their annual interest payments and
alimony and subtract the standard deduction. Subtract any non-wage income and divide by 1,000.
Employees should complete worksheet C on the last page of DE-4 if they have other non-wage income.
The EDD recommends that when an employee's spouse earns income, that
one spouse take all the exemptions, while the other declare single with 0 allowances.
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| How the number of allowances affects the amount of withholding |
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Every additional state allowance means that the employee will have $91 less withheld
during the year. If the allowances are incorrect, they will owe this amount on April 15th.
|
|
How to complete
DE-4 |
|
Each employee should complete the front of the DE-4 form and Worksheet A.
Worksheet B only needs to be completed if the employee has larger deductions than
the standard deductions. For most people, the largest deductions are their mortgage interest
and alimony. So a rough way to complete this worksheet is to take their annual interest payments and
alimony and subtract the standard deduction. Subtract any non-wage income and divide by 1,000.
Employees should complete worksheet C on the last page of DE-4 if they have other non-wage income.
The EDD recommends that when an employee's spouse earns income, that
one spouse take all the exemptions, while the other declare single with 0 allowances.
|
|
| How the number of allowances affects the amount of withholding |
|
Every additional state allowance means that the employee will have $91 less withheld
during the year. If the allowances are incorrect, they will owe this amount on April 15th.
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| New employees should receive |
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The state requires that you provide new employees:
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| Questions? |
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Visit http://www.edd.ca.gov/Payroll_Taxes/default.htm
or call the California Employment Tax District Office at (888) 745-3886.
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