BUSINESS AND FINANCIAL SERVICES
November 4, 2009
In response to the ongoing State budget crisis, the California Legislature enacted Assembly Bill 17 accelerating the withholding of State personal income taxes. The intent is to generate an additional 10 percent in payroll tax withholdings assuring the State will receive more tax revenues throughout the year. The new rates will be reflected on the November 25, 2009 bi-weekly payday and the December 1, 2009 monthly payday and will remain in effect through the end of the year.
It is important to note that AB 17 is not a tax rate increase, it is a payroll tax withholding acceleration program. While the withholding amounts have increased, the underlying state tax rates that determine the taxes employees owe in 2009 have not changed.
Below is information from the State of California Employment Development Department regarding the tax changes:
In addition, as there have been several changes to California's 2009 withholdings, we encourage you to consult with an outside tax professional to assist you in determining how these changes impact you.
For detailed instructions on how to change your State Tax withholding please visit Blink at:
Should you have any questions or concerns, please contact Paul Rodriguez at (858) 534-3241 or via email at email@example.com.