Skip to main content

State Pay And Taxes

State Pay and Taxes

Pre and Post Tax Retirement Contributions:

When calculating your effective tax rate, the types and amounts of your monthly (or bi-monthly) deductions need to be factored in. Some deductions are made pre-tax, and some are made post-tax.

CalPERS contributions, for example, are made pre-tax. This means that before calculating how much you ultimately have to pay in Federal and California State taxes, retirement contributions are first subtracted. If you had a monthly salary of $4,200 and a $300 CalPERS contribution, the adjusted salary used to determine how much you have pay in Federal and State taxes is $3,900 ($4,200-$300). If, in addition to your $300 per month CalPERS contribution, you contributed $100 each month to a 401(k), your taxable income would be $3,800 ($4,200-$300-$100).

The California Job Blog has an article on the Savings Plus 401(k) and 457(b) Plans.

When you receive a distribution from CalPERS or another tax-deferred account in retirement, it is treated as income and taxed accordingly. For most people, income in retirement is significantly less than during their working years. Income that is saved in a qualified, tax-deferred account during one’s working years and distributed in retirement can result in lower total taxes paid.

Tax Treatment of Other Deductions:

Medical, Dental and FlexElect contributions are considered pre-tax, which means they are subtracted before calculating how much you owe in Federal and California State income taxes. In addition to being pre-tax (Federal and State), medical, dental and FlexElect contributions are subtracted before calculating how much Social Security and Medicare tax is withheld from each paycheck.

Retirement contributions reduce Federal and State taxes, but they do not reduce withholding for Social Security, Medicare and CA SDI.

Deductions for Union Dues, Group Legal Services and Life Insurance are all post-tax, which means they won’t reduce your taxable income.

Taxes Vs. Withholding:

Each pay period, state employees receive a pay check. The amount of this check is your gross pay minus deductions. Among these deductions (which also include, retirement, health insurance and union dues) are Federal Tax and State Tax. But you aren’t technically paying Federal and State taxes each month. Taxes are only paid once a year.

For money earned in 2018, you will file your taxes by April 15, 2019. By this date you will have filled your taxes with the IRS and the California Franchise Tax Board. The amount you pay or get back is based on the total amount of money you earned in the year. The amount taken out from your paycheck each month isn't always a perfect amount and could differ from your final tax bill.

The Federal and State tax that is deducted from your gross pay each month is a withholding. Employers estimate how much money you will make for the entire year and withhold a proportional amount from your salary each month. If you end up making less than the original estimate, you could receive a refund. If you make more, you could end up paying an additional tax bill.

Thanks for reading!

Related Articles:

Savings Plus: 401(k) and 457(b)
What is CalPERS?
Student Loan Forgiveness


Popular posts from this blog

Statement Of Qualifications

If you’ve been applying for jobs with the State of California, you’ve probably seen job postings requiring a Statement of Qualifications (SOQ). An SOQ is a way for hiring departments to apply Screening Criteria to help them select the most qualified candidate (or candidates) for a position.

Hiring departments requiring a Statement of Qualifications as part of an application package is becoming more common. What was once reserved for higher level and managerial positions, SOQs are now being required for lower and even entry-level classifications. While it’s true that they can be a lot of work, they don’t have to be mysterious or complicated. This article will help to explain what they are, what their purpose is and, most importantly, how to write one that is awesome.

A Statement of Qualifications can be required for any vacancy. They can also be required for Career Executive Assignments or Exams. Our best advice is to approach the SOQ as a way to get invited for an interview. A good SO…

2019 State Of California Paid Holidays

In 2019, Employees with the State Of California are entitled to the following paid holidays:New Year's Day (Tuesday, January 1)
Martin Luther King Jr. Day (Monday, January 21)
President's Day (Monday, February 18)
Cesar Chavez Day (Monday, April 1)
Memorial Day (Monday, May 27)
Independence Day (Thursday, July 4)
Labor Day (Monday, September 2)
Veteran's Day (Monday, November 11)
Thanksgiving Day (Thursday, November 28)
Day After Thanksgiving Day (Friday, November 29)
Christmas Day (Wednesday, December 25)
Notes On Holidays:New Year’s Day – January 1
Martin Luther King Jr. Day – 3rd Monday in January
President's Day – 3rd Monday In February
Cesar Chavez Day – March 31
Memorial Day – The last Monday in May
Independence Day – July 4
Labor Day – First Monday in September
Veterans Day – November 11
Thanksgiving Day – 4th Thursday in November
Day After Thanksgiving – The Friday after Thanksgiving Day
Christmas Day – December 25
More On HolidaysColumbus Day (October 14, 2019) is not is a paid hol…

The State Of California Job Application (STD 678)

How to Apply for California State Jobs The standard state employment form (STD 678) can be selected manually here. You can download and edit it in a PDF format. You can also download, print it and fill it out by hand. However, the California Job Blog recommends job-seekers take full advantage of the State jobs website and create a personal CalCareer account.

We recommend that you create an account and generate your application electronically. Then you will be able to manage, submit, and track job applications seamlessly. If you are actively looking for a job with the State of California, you'll be submitting a lot of applications and doing them all by hand is inefficient. If you need more convincing of the benefits, read more about Your CalCareer Account here.

The State Application is the same when applying for exams or vacancies. Applicants should indicate on their application which they are applying for. The application is a legal document so take it seriously and follow th…

State Of California Typing Certification

State of California Typing Test
For certain State of California Job classifications, a typing certificate is required. Most commonly, you'll need these certificates for the Office Technician and Office Assistant classifications. For both the Office Technician and Office Assistant classifications you'll find 2 forms, (Typing) or (General). If you search for either of these classifications from, you should see postings for both in your search results.

For Office Technician, the class code will also tell you whether the position is (Typing) or not. For Office Technician (Typing) the class code is -1139. For Office Technician (General) it is -1138. You'll see that for (Typing) positions the monthly pay difference is $55 more than for (General).

For Office Assistant (General) the class code is -1441 and for Office Assistant (Typing) the class code is -1379. For Office Assistant the (Typing) positions make $79 more per month than for (General).

For both OT and OA job…