On: July 20, 2019
The following is based that the employer and employee are based in the state of California. Each of the 50 states in the United States has its own tax regime, but this can be used as a template. For further information, you should consult with a tax professional from the state you are reporting and paying taxes to. City: Cities do not tax income directly. You do not have to withhold taxes at the city level. They tax on real property and on sales. County: Counties do not tax income directly. You do not have to withhold taxes at the county level. They tax on real property. State: The state of California has a number of taxation agencies. The FTB is the state equivalent to the Internal Revenue Service in the state of California. The EDD is the department that regulates, administers and enforces withholding requirements in California. The certificate, DE 4, is for California Personal Income Tax (PIT) withholding purposes only. The DE 4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax withholding obligation.