What is SIT tax and does it change to a very large amount on your very first check when entering a new tax bracket. My employer says I owe 97.00 for SIT tax that didn't get paid in 3rd quarter but got paid in 4th quarter and all I know is that every paycheck has been correct.

SIT is your personal income tax withholding on your wages. Yes, if you get a raise, or change your exemptions, you could see a noticeable change in your withholding. However, that change would be a pro rata change over the course of the remainder of the tax year.

I am a little confused about why your employer is approaching you about an under withholding in any period. They withhold and remit the amounts withheld to the EDD. If for some reason they under-withhold, you may owe money to the FTB when you file your 2008 income tax return. I have never seen a circumstance where an employer has tried to collect an under-withholding for SIT from the employee. Would you feel comfortable giving a few details pertaining to why they are discussing the $97 with you?