California Paycheck Calculator

California Paycheck Calculator

The state of California has the highest top marginal income tax rate in the country. This characteristic, coupled with its overall high tax environment, significantly influences the amount of money Californians take home in their paychecks.

California’s income tax system operates on a progressive basis, meaning that individuals with higher incomes are subject to a greater marginal tax rate. Cities in California levy their own sales taxes but do not charge their local income taxes.

SUTA Rates

The unemployment tax rate for employers with positive balances ranges from 1.5% to 5.9%; for those with negative balances, it will be 6.2% in California in 2024.

There is also no change in the 3.4% tax rate for newly registered enterprises.

FUTA Rates

A 6% tax rate will apply to the first $7,000 of taxable income that an employee receives each year. Your FUTA tax rate may be lowered to 0.6% if you are eligible for a credit of up to 5.4% if you pay unemployment insurance taxes to the state.

The FUTA tax must be paid by the employer on behalf of its workers. Your workforce is not accountable for the tax.

FICA Rates

In California, the FICA tax rates for 2024 are as follows:

For Employees and Employers:

• Social Security Tax: 6.2% on the first $168,600 wages
• Medicare Tax: 1.45% on all wages

Additional Medicare Taxes

• Employees: 0.9% on income over $200,000 for individual taxpayers and $250,000 for joint filers.

Other Taxes

Payroll contributions may also include payments for optional employee benefits or mandated government programs.

State disability insurance and workers’ compensation insurance are two examples.

• In California, the ETT rate for 2024 is 0.1%.
• In California, the SDI withholding rate for 2024 is 1.1%. Furthermore, there will be no maximum amount to withhold in 2024 due to the absence of a pay cap for SDI withholdings.

Other Deductions on Pay Stub

Any paid time off that your employer offers—for personal, vacation, sick, parental, or other reasons—must be tracked as part of the payroll procedure. You should also think about your retirement plan and the health insurance for your employees.

Here are a few instances:

• Retirement Contributions: Money inserted in 401(k) or some other retirement savings plan
• Health Insurance Premiums: Employees’ portion of health insurance costs is not covered by the employer.
• Life Insurance Premiums: Employee’s portion of life insurance costs.
• Disability Insurance Premiums: Short-term or long-term disability insurance costs.
• Union Dues: Fees are paid to the labor union.
• Charitable Contributions: Donations to charitable organizations via payroll deduction.
• Wage Garnishment: Court-ordered deductions for things such as child support or unpaid debts.

California Payroll Tax Withholding

Every pay period, you will deduct from the employee’s paycheck the amount they have requested to have withheld on Form W-4, together with any additional amount they have requested, and send it to the IRS with their usual federal income tax payment.

California Payroll Tax Generator