State Witholdings - Too little withheld for an individual
What is my responsibility for this? I have an employee who completed a W-4 for single, and claiming "0" . She is currently very concerned as tax season arrived and she now realized she owes a lot to state. She took a look at her paycheck withholdings and for some reason our payroll company seems to have been taking out only about 1/2 of what the EDD's standard recommends. According to BLR we should be deducting based on the EDD bracket or the exact calculation method. Either way I do understand the tax would still be owed (and so does she) but what does this mean overall - other than she owes a lot and wasn't expecting that? We never issued to our employees the state form for withholding, but have based it off the W-4.