Tax Withholding Information

California State Tax Withholding Information:

*Employees should contact their personal tax advisors to determine individual withholding requirements.

Federal Tax Withholding Information:

***Employees should contact their personal tax advisors for assistance to determine their personal withholding choices. Payroll staff does not advise on these matters. 

Imputed Income Tax: What You Should Know

Imputed income is a term the Internal Revenue Service (IRS) applies when they feel the value of a benefit or service should be considered income for the purposes of calculating your federal taxes. Only a few benefits may count as imputed income. For SDUSD employees this includes:

  • Basic life insurance in excess of $50,000. Eligible employees are automatically enrolled for basic life insurance coverage underwritten by Hartford Life Insurance and provided at district expense. The death benefit is equal to annual salary x 1.
  • Supplemental life insurance.
  • Medical and dental insurance coverage for domestic partners. SDUSD takes payroll deductions on a tenthly basis.

As a result, the tax required on a twelfthly basis is "caught up" on the October payroll each year. This taxable income is added to taxable gross for the months of July and August on the October payroll. In most cases, this amounts to a very small change in taxable gross (less than $25). If you have questions regarding the adjustment, please contact your payroll specialist. For information regarding IRS rules referenced here, visit the IRS web site or consult your tax professional.