AB 1959

Bill Subjects

Abstract

Existing law requires the Franchise Tax Board to prepare wage withholding tables to be used by employers for purposes of withholding taxes on wages paid. Existing law requires, for wages paid on or after November 1, 2009, the wage withholding tables to produce a sum that is equal to 10% more than the sum specified for purposes of the withholding tables. Existing law allows, in lieu of the withholding tables, withholding at a rate of 6.6% with respect to supplemental wages and at a rate of 10.23% with respect to stock options and bonus payments paid on or after November 1, 2009. This bill would limit the requirement for the additional 10% wage withholding to wages paid on and after November 1, 2009, and before January 1, 2011. This bill would limit the withholding at a rate of 6.6% with respect to supplemental wages and at a rate of 10.23% with respect to stock options and bonus payments to payments made on or after November 1, 2009, and before January 1, 2011, and would, thereafter, reduce the rates to 6% and 9.3%, respectively.