• California's New Withholding Rate on Stock Options and Bonus Payments
  • April 30, 2003 | Authors: Henry A. Hernandez; Jeffrey M. Vesely
  • Law Firm: Pillsbury Winthrop Shaw Pittman LLP - San Francisco Office
  • In California, the amount of taxes to be withheld from wages for California personal income tax can always be determined by using the wage withholding tables prepared by the Franchise Tax Board. The amount of taxes to be withheld from "supplemental wages," which include, but are not limited to, bonuses, gains from the exercise of non-statutory stock options, commissions, overtime pay, sales awards, back pay including retroactive wage increases, and reimbursements for nondeductible moving expenses, can be determined by using the Tables or, alternatively, by applying a flat withholding rate of 6 percent.