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<p class=MsoNoSpacing>November 10, 2009<o:p></o:p></p>
<p class=MsoNoSpacing><o:p> </o:p></p>
<p class=MsoNoSpacing>To: PPS Users<o:p></o:p></p>
<p class=MsoNoSpacing>Fr: Payroll Office<o:p></o:p></p>
<p class=MsoNoSpacing>Re: State Withholding Tax Change<o:p></o:p></p>
<p class=MsoNoSpacing><o:p> </o:p></p>
<p class=MsoNoSpacing>-----------------------------------------------------------------------------------------------------------------------------<o:p></o:p></p>
<p>In response to the state fiscal emergency, the California personal income
tax withholding tables have been revised effective for November earnings paid
December 1 (MO) and December 7 (MA). <o:p></o:p></p>
<p>The withholding rates have been increased by 10% in order to accelerate tax
collections by the State and to prevent under withholding by employees.
For example, if your tax rate was 6.25%, it will become 6.875% for wages paid
on or after November 1, 2009. In addition, the rates for supplemental
wages and bonus payments have increased to 6.6% and 10.23%, respectively,
effective November 1.<o:p></o:p></p>
<p>While the withholding rates have increased, the underlying state tax rates
that determine the taxes employees owe in 2009 have not changed. <o:p></o:p></p>
<p>For more information, contact the Franchise Tax Board at <a
href="http://www.ftb.ca.gov" target="_blank">www.ftb.ca.gov</a> or call the FTB
at 1-800-852-5711.<o:p></o:p></p>
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