The information your employees provide on their federal Employee's Withholding Allowance Certificate (IRS Form W-4) is also used to calculate those employees’ California Personal Income Tax (PIT) withholding. lf your employees wish to specify different withholding for State purposes, an Employee Withholding Allowance Certificate (DE 4) must be filed.

Employees complete the DE 4 to claim a different marital status or number of allowances than they claimed on their IRS Form W-4. In addition, if your employee wants to claim exempt from federal and California PIT withholding, they should claim the exemption on Form W-4. Since the exempt status expired on February 15 each year, the employee must complete a new Form W-4 by February 15 to remain exempt. If the employee does not sign a new Form W-4, you are required to change the employee's California withholding status to "single" with zero (0) withholding allowances and begin withholding California PIT.

For more information or to request an Employer's Obligations for Form W-4 or DE4(DE 71), call 1-888-745-3886; access their Fax-on-Demand system at 1-877-547-4503; or visit their Internet site at www.edd.ca.gov/taxform.htm.