You can complete the W4S with your estimated adjusted gross income and any income tax withheld to date to determine if withholdings are recommended. Workers' Compensation Benefits are not subject to withholding, Social Security, or Medicare taxes.Request to withhold taxes. Submit a request to pay taxes on your Social Security benefit throughout the year instead of paying a large bill at tax time. The first tier of paycheck protection for most employees is workers' compensation coverage. Generally speaking, Married Filing Jointly usually results in the lowest tax bill. The selection you make on the W-4 should match how you plan to file. Your answer will be the amount you want taken out of each check. California wages are subject to SDI (State Disability Insurance) or VDPI (Voluntary Plan Disability Insurance) withholding up to a specific annual amount. If you are filing a joint return and both of you had excess contributions withheld, you must complete separate forms for each of you.