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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 (gross pay)       
  • Pay frequency                                                                            
  • Employee's state withholding allowance amount
  • Any other additional withholding amounts specified by the employee
  • Employee's marital status
  • Wage base limits
  • Exemptions
  • Pre-tax benefits

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.