Tax Withholdings From Pension Payments


At retirement, you should have already completed forms instructing MercedCERA how to withhold taxes from your monthly benefit payment. As a benefit recipient, you have several options regarding your withholding for Federal and State of California taxes. You may select an amount based on the tax tables and your tax filing status (i.e., single or married).  You may also elect to have nothing withheld.


If you are a non-resident of California, state taxes should not be withheld. You can change your tax withholding at any time by completing and submitting the Stae of California DE 4P form. These must be received by MercedCERA each month before the monthly payroll processing begins (generally before the 18th of the month) for a change to be processed in time for that month’s retirement payroll.