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State income tax (SIT)

State income tax (SIT) is withheld from employee earnings each payroll. It is calculated using the following information:

  • ​The amount earned
  • Employee's marital status
  • Employee's state withholding allowance amount
  • Any other additional withholding amounts specified by the employee

Actual rates differ for each state. Gusto calculates your employees' state income tax using the tax withholding information entered into Gusto and the state's current tax tables.

Payroll, benefits, HR and more.