Resources: Tax Deduction Codes, Descriptions, and Rates
- Payroll is required to deduct all federal and state income taxes listed below from employee's taxable earnings each pay period.
- Registered degree-seeking students, working part-time (Pay Group - STU), are only subject to Federal and California State withholding taxes.
- Federal and California State withholding tax rates are determined by the total number of allowances declared by the employee on the W-4 and DE-4 forms. For help changing your federal and state withholding allowances, review How To: Declare or Change Withholding Allowance.
| Tax Deduction Code | Description | Tax Rate |
|---|---|---|
| Fed Withholding | Federal Income Tax | W-4 Rate |
| Fed MED/EE | Medicare | 1.45% |
| Addl Med | Additional Medicare Tax | 0.9% on wages earned in excess of $200,000 |
| Fed OASDI/EE | Social Security | 6.2%* on first $113,700 wages earned |
| CA Vol Dis/EE | Short-Term Disability | 1.0% on first $100,880 wages earned |
| CA Withholding | State Income Tax | DE-4 Rate |
* The Social Security tax rate decrease implemented as the result of the Tax Relief Act of 2010 expired on December 31, 2012. This increases the employee Social Security tax rate from 4.2% to 6.2% effective January 1, 2013.
