I would like to take this opportunity to advise both employers and employees of an upcoming change regarding wage withholding. Wage withholding will increase by 10% for wages paid on or after November 1, 2009. This tax change occurred as part of the 2009-2010 budget revision.

While you should contact a tax advisor as each individual situation varies, if you decide that you don't need the additional 10% withheld from your checks beginning in November, you will need to file a DE-4 with EDD. This is very similar to the W-4 that you file for withholding, but in this case, only applies to the state withholdings. The form is available here.

Individuals with questions about making changes to their tax exemptions should also contact their payroll office or the Employment Development Department at www.edd.ca.gov.