This law requires employers in California to withhold taxes from employees' wages. For residents, this applies regardless of where they work, and for nonresidents, it applies if they work in California. The tax withheld should be close to what the employee owes after including their wages as income for tax purposes, with calculations adjusted according to personal exemptions.

The method to determine how much to withhold is set by the Franchise Tax Board. Employers can use accounting machines for these calculations if they produce nearly the same result. Importantly, withholdings are not needed for nonresident corporate directors paid for their director roles in California.

This law outlines the requirements for employers in California to report and remit withheld income taxes. Employers must file a quarterly withholding report, regardless of whether wages were paid, and submit taxes withheld each quarter. Those who also report federally must adhere to similar timelines for state taxes if $500 or more is withheld. If an employer's payments exceed $20,000 annually, they must remit taxes through electronic funds transfer, with exceptions for certain circumstances. Employers can opt to use electronic payments even if not required and are protected from penalties if they remit 95% of taxes on time, unless done willfully. Furthermore, for those withholding at least $350 in a month, taxes must be paid monthly. Annual reconciliation is also mandated, except for specific years, with changes effective from 2013.

This California law section defines key terms related to electronic funds transfers used for transactions between employers and the state. An "electronic funds transfer" is a method to move money electronically without using checks, typically through networks like automated clearinghouses or Fedwire. An "automated clearinghouse" is a system helping banks send and receive payment entries, while "debit" and "credit" refer to how money is moved between bank accounts.

The state covers costs for debit transactions, but employers pay for any costs associated with credit transactions or Fedwire, which needs department approval. "Business day" is defined as typical working days, excluding weekends and holidays. The "settlement date" is when the money exchange is recorded. Lastly, "cumulative average payment" is the average deposit amount over time, which might also represent a single annual payment.

This law allows employers to round their employees' wages to the nearest dollar when figuring out how much money to deduct from their paychecks under another rule.

This section allows the department to create regulations that let employers estimate an employee's wages for each quarter to figure out how much to withhold in taxes from each paycheck. This means employers can treat the estimated average wages as if they were actual wages when calculating tax withholdings. Employers can also adjust the withheld amount throughout the quarter to make sure it matches what would be required if the employee's pay period was quarterly.

This law allows the department to set regulations for additional tax withholding from an employee's paycheck beyond what is normally required. This can happen only if both the employer and the employee agree to it. The extra withholding is treated just like any other tax that must be deducted under this division.

This law says that if a retail salesperson is paid in something other than cash, but normally would earn a cash commission for their work, the employer doesn't have to withhold taxes from that non-cash payment. However, the employer must provide certain information to the relevant department as specified by regulations.

This law section states that employers are not required to withhold state taxes from an employee's wages if the employee provides a withholding exemption certificate. This certificate must state that the employee didn't owe federal income taxes last year and doesn't expect to owe them this year either.

This law clarifies how employers should handle taxes on tips that count as wages. Employers can deduct and withhold taxes from an employee's wages, but only if those tips are detailed in a written statement from the employee, as specified in a related section. It also allows employers to deduct taxes even if total monthly reported tips are less than $20, as long as the written statement is provided. However, the amount of tax deducted cannot exceed available wages and funds under the employer's control.

This law explains that pensions, annuities, and other deferred income are treated like wages for tax withholding purposes. If a person chooses not to have taxes withheld on these funds, that choice generally applies here too, unless they opt in to withholding with the payer's consent. Rules for calculating tax withholding under this law align with federal calculations, allowing specific methods to choose from. If the withholding calculated is below $10 per month, the payer doesn't have to withhold it. The law doesn’t apply to payees living outside California, and the department will set regulations to help implement these rules.

If the authorities think a nonresident might not pay California taxes, they will inform the person or business making payments to that nonresident. This payer must then hold back some money from those payments, as if these payments were normal taxable income. The authorities will also let the nonresident know that this withholding is happening and explain why they think taxes might not be paid.

This law explains how supplemental unemployment compensation benefits are treated for tax purposes. These benefits are considered wages, meaning they’ll be taxed as regular income. They are paid to employees who are involuntarily separated from work due to layoffs, plant closures, or similar reasons. For these payments to be taxable, they must be part of a plan involving the employer and must be included in the employee’s gross income.

This law outlines how sick pay that isn't considered regular wages can still have taxes withheld if the individual requests it. Sick pay refers to money paid to an employee who is out sick, based on a plan involving the employer. If an employee wants tax withheld from this sick pay, they must make a written request specifying the amount, their social security number, and it's effective after seven days. Additionally, if sick pay is part of a collective bargaining agreement, different rules may apply, and the withholding amount is determined by that agreement.

This law allows the department to establish rules for withholding certain payments that aren't considered wages in the usual sense, as long as both the payer and recipient agree to it.

The withholding can apply to employee services or other payments deemed appropriate by the department. Both parties must agree to this in a specified manner.

Such payments are then treated like wages for legal and tax purposes during the agreement period.

This law explains how employers should handle tax deductions when wages don't follow a regular payroll schedule. If wages are paid for a period that isn't a standard payroll period, the deduction should match that of a similar period with the same number of days, including weekends and holidays. If wages are paid without considering any specific payroll period, the deduction should reflect the days since the last payment, job start date, or January 1st of the current year, whichever is latest. If these periods are shorter than a week, the law allows using weekly wages minus exemptions to calculate deductions.

This law is about how an employer decides whether the money paid to an employee during a payroll period counts as wages. If an employee earns wages for at least half of a payroll period that lasts 31 days or less, then all of the money earned in that time is considered wages. However, if the employee doesn't earn wages for more than half of that period, then no payment during that time is counted as wages.