What is State Income Tax? (SIT)

Understanding State Income Tax withheld.

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. We accurately calculate your employees' state income tax using the tax withholding information entered into our payroll software and the state's current tax tables.