How to Fill Out the EDD Withholding Allowance Certificate

To fill out the DE 4 California withholding form, enter your name, address, and Social Security number, choose a filing status, use Worksheets A and B to calculate your allowances, add any extra withholding you want taken from each paycheck, sign the form, and give it to your employer.¹ California requires this form, separate from the federal W-4, so your employer can calculate the correct state income tax to withhold from your wages.² You can download the current form from the California Employment Development Department website or ask your employer’s human resources department for a copy.³

Personal Details and Filing Status

Start with the identifying information at the top of the form:

Full legal name
Current residential address
Social Security number

Then select one filing status: single, married, or head of household. Head of household applies if you are unmarried and pay more than half the cost of maintaining a home that is the main residence for a qualifying person for the required length of time.⁴ If the form does not clearly show your marital status, your employer must treat you as unmarried.⁵ And if you turn in a form that isn’t properly completed at all, the employer must withhold as if you are single with zero allowances, which usually means a larger bite out of each check.²

Figuring Your Allowances

The form comes with two worksheets. Worksheet A walks you through regular withholding allowances, which are generally tied to the personal exemptions and dependents you would claim on your tax return. Each allowance you claim reduces the wages subject to withholding, so more allowances mean more take-home pay per period.

Worksheet B is for extra allowances tied to significant deductions or state income tax credits that would otherwise cause too much tax to be withheld.⁶ Common examples are mortgage interest and charitable contributions. Working through this sheet honestly gets your withholding closer to your actual year-end tax bill.

You can also go the other direction. If you have investment income or side earnings that don’t have tax taken out automatically, the DE 4 lets you ask your employer to withhold a specific extra dollar amount from each paycheck on top of the standard calculation.⁷

Claiming Exempt Status

You can claim exemption from state withholding only if you meet a two-part test: you had no federal income tax liability last year, and you expect none this year. Employees who qualify often include students and low-earning part-time workers.⁶

Exempt status is not permanent. It expires each year, and your employer must resume withholding after February 15 unless you submit a new DE 4 claiming exempt again.⁸ Check your situation at the start of every year and file a fresh form before the February 15 deadline if you still qualify.

Signing and Submitting to Your Employer

Your signature is what makes the form valid. Unsigned certificates are treated as not properly completed, and the employer defaults to single with zero allowances.⁶²

Give the completed DE 4 to your employer, not to the state. The employer keeps the original in payroll records; keep a copy for yourself.

Timing matters. A new certificate takes effect on the first wage payment on or after one of these status determination dates:

January 1
May 1
July 1
October 1

To be certain your changes are in place by one of these dates, hand in the form at least 30 days ahead. Your employer may apply the changes sooner, but is not required to.⁹ Look at your next pay stub after submitting to confirm the new withholding took effect.

If the IRS Overrides Your Certificate

If federal authorities determine that your withholding certificate is invalid and tell your employer to withhold at a specific rate, that same instruction applies to your California state withholding.⁶

You can challenge how that federal determination affects your state withholding by writing to the Franchise Tax Board in Sacramento. The review is limited to whether the federal decision is correct for state withholding, and you need to submit evidence supporting the status you want.⁶

1
California Employment Development Department. What Are State Payroll Taxes – Section: Types of Payroll Taxes
2
California Employment Development Department. Rates and Withholding – Section: Employee Withholding Allowance
3
California Employment Development Department. Forms and Publications – Section: DE 4 – Employee’s Withholding Allowance Certificate
4
Office of the Law Revision Counsel. 26 U.S.C. § 2
5
California Legislative Information. California Unemployment Insurance Code § 13040
6
Cornell Law School. 22 CCR § 4340-1
7
Cornell Law School. 26 CFR § 31.3402(i)-1
8
Cornell Law School. 26 CFR § 31.3402(n)-1
9
California Legislative Information. California Unemployment Insurance Code § 13042