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California Payroll Tax & Garnishment
What Employers Must Know

Complex

California, New York, Hawaii, Pennsylvania, and Texas each play by different rules.

The rule.

State Income Tax Rate
1–13.3%
Additional Payroll Deductions
Yes — SDI
Wage Garnishment Limit
25% disposable or 50% of disposable above 40x state min wage
Processing Fee Permitted
No additional fee
Additional Agency
Yes — EDD
Key Notes
Most complex. 13.3% top rate. SDI deducted separately. Wage garnishment formula differs from federal — more protective of employees. Child support: strict rules.

Most complex. 13.3% top rate. SDI deducted separately. Wage garnishment formula differs from federal — more protective of employees. Child support: strict rules.

Last verified: June 2026.

What's in the Payroll Tax & Wage Garnishment workbook

What's in the workbook

Payroll Tax & Garnishment — every state covered. Visible items show the chapters; locked items reveal the structural depth.

  • State Reference
  • Compliance Checklist
  • Monthly Updates
  • 🔒Initial Assessment
  • 🔒Garnishment Processing
  • 🔒Recordkeeping
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