September 7, 2023
California employers make regular income tax withholding payments for their employees. These amounts are reported every weekday, providing a real-time indication of the direction and magnitude of aggregate change in the employers’ payroll. Most withholding payments are for employees’ wages and salaries, but withholding is also due on bonuses and stock options received by employees.
Monthly Witholding Compared to Budget Act Projections. Monthly PIT withholding for August came in $367 million (5 percent) above projections included in 2023-24 Budget Act. July was a similar amount below projections. As such, since the start of the fiscal year, withholding is running even with the Budget Act projections.