New CA tax withholding increase effective Nov 1

Below is a copy of the text I sent out to all employees in California:

From XXXXXXX Payroll Services
The following information is being distributed to all California based associates of XXXXXXX.

In order to accelerate tax revenues, recently passed CA Assembly Bill x4-17 increases the amount of personal income tax that employers are required to withhold from the wages earned by those employed in the state of California. This increase becomes effective on November 1st and will be reflected on wages paid on and after this date.

In addition to a general increase in withholding from regular wages, the state supplemental tax rate will increase to 10.23% for bonus related payments and similar distributions as outlined in this bill.

Do I need to Make Any Changes in my CA Withholding at this Time?
You should first consider the impact of the bill on your 2009 personal income tax situation before determining whether any change to current withholding elections is necessary. Your current state and federal tax withholdings are displayed on the top right side of your Paycheck paystub for your reference.

[Example of paystub withholding status & allowances]

If you would like to change the amount of your current withholding, you will need to complete a new CA state tax withholding form DE-4. This form is available through the Company intranet site under the State Tax Form selection or it may be obtained directly from the CA.GOV website. Completed forms may be faxed to (XXX) XXX-XXXX.

If you have any questions or require additional assistance please contact XXXXXXX Payroll Service Center at (XXX) XXX-XXXX.

More information regarding AB x4-17 and the new withholding schedules may be obtained by accessing the CA.GOV website directly through the following link: http://edd.ca.gov/Payroll_Taxes/2009_PIT_Schedules_Replaced.html