QUICK PAYROLL FACTS - CALIFORNIA

  

California Minimum Wage

The California minimum wage remains at $6.25.

 

Standard Mileage Rate

The mileage rate decreased from 36.5 cents in 2002 to 36 cents in 2003.

 

Social Security and Medicare

These taxes are withheld from both the employee (7.65%) and the employer (7.65%).

 

                                                  Social Security                        Medicare      

Rate:                                                   6.2%                                1.45%                      

Wage Base:                                      $87,000                          Unlimited

Maximum Tax:                                  $  5,394                           Unlimited

 

The wage base for Social Security in 2002 was $84,900. This results in an increase for 2003 of $2,100.  The maximum withholding in 2002 was $5,263.80, thus resulting in an increase of $130.20 in 2003.  There is no change to Medicare.               

 

Federal Unemployment (FUTA)

The Federal Unemployment tax is an employer tax only and remains the same for the year 2003.  The FUTA rate is .8%, with a wage base limit of $7,000.

 

California State Disability Insurance (SDI)

California State Disability Insurance is an employee tax only.  The SDI rate remains at .9%.  The wage base increased from $46,327 in 2002 to $56,916 in 2003, an increase of $10,589.  The year to date tax withheld for each employee does not exceed $512.24.

 

Income Tax

Federal:            The tax tables can be found in the Employer’s Tax Guide, Circular E, at: www.irs.ustreas.gov/prod/forms_pubs/index.html.

State:                The tax tables can be found in the California Employer’s Guide at: www.edd.ca.gov.

 

California State Unemployment Insurance (SUI)

California State Unemployment Insurance is an employer tax only.  Rates differ for each employer, and in 2003 your rate can range from .9% to 5.4% with a wage base limit of $7,000.  You should receive a statement from the EDD with your 2003 rate during the fourth quarter of 2002.  If you have not already forwarded this information to Precise Pay, please do so.  The new employer rate increases from 3.4% in 2002 to 3.5% in 2003.

 

California Employment Training Tax (ETT)

California Employment Training Tax is an employer tax only.  The ETT tax is .1% of taxable wages with a wage base limit of 7,000.

 

401K

The 401K withholding limit increases to $12,000 for 2003 (Simple retirement plans: $8,000).