PIT withholding refers to the state’s personal income tax withholding requirement for employers. California employers must withhold a certain amount of state income tax from their employees’ wages and remit it to the state on their behalf; the amount is based on the employee’s taxable income and the withholding tables used by the state of California. Funds from PIT go toward maintaining public services such as: schools, infrastructure such as roads, park maintenance, and health and human services.