Exemptions from Tax Withholding in California

California’s Unemployment Insurance Code, in Division 6, Chapter 3, provides for withholding exemptions. Section 13040 requires an employer to use the exemption certificate filed by the employee with the employer using the EDD form and required information for determining the number of withholding exemptions to be allowed in computing the tax required to be deducted and withheld. If the employer cannot determine the employee’s marital status from the exemption certificate, then the employee must be considered unmarried.

Section 13041 provides that the number and amount of withholding exemptions allowed are required to be based upon the persons claimed in a withholding exemption certificate.

Section 13042 states that a new withholding exemption certificate filed under this division in cases in which a previous certificate was in effect will take effect with respect to the first payment of wages made on or after the first status determination date which occurs at least 30 days from the date on which such certificate is furnished.

Section 13043 specifies that the amount to be deducted and withheld under this division is prescribed pursuant to Section 18663 of the Revenue and Taxation Code when a payment of wages is made to an employee by an employer in specified cases.