If you would like to use a payroll software program to calculate the amount to withhold from salary and wages, you can use the following mathematical formula. However, this formula is only relevant if you pay your worker both CDEP and non-CDEP amounts as part of their wages.
A = (C - 115) x 0.15
A is the calculated CDEP withholding reduction amount expressed in dollars, and
C is the CDEP amount of the workers weekly earnings
Rounding of amounts withheld
The amounts you withhold must be rounded to the nearest dollar. If an amount you withhold ends with 50 cents, round it to the next highest dollar.
If you calculate the withholding reduction amount to be less than zero, round the amount to zero.
Do not use software programs unless they have been tested for accuracy and produce the exact amounts shown in the CDEP calculation table.
Last modified: 22 Oct 2012QC 17754