I got this email from my friend about state tax increase. I didn't believe it at first but then yesterday i got an email from our payroll dept saying that they will increase our state tax withholding starting november 2009. I dont know if this is a repost I'm just trying to get the word out.

Subject: 10% tax withholdings


FYI



To all you Californians, you may want to take a look at this and make changes to your W2. They are trying to be very secretive about it, share with your family and friends.



Wendy



Subject: 10% tax withholdings



THANK YOU, WENDY!



HERE’S THE ONLY OTHER VERIFIABLE LINK I COULD FIND ABOUT THE INCREASE.

I WASN’T ABLE TO FIND A WORD ABOUT IT ON ANY CA STATE SITE!

(I GUESS THEY ARE JUST GOING TO SNEAK IT IN!!!!!!!!!)



http://file.lacounty.gov/bc/q3_2009/cms1_137061.pdf











Please read the information below regarding the Increased Payroll Tax Withholdings employers are automatically withholding by 10 percent starting in November without notifying the employee and what you need to do. This affects everyone who receives a paycheck not just State employees.



FYI…So with the supposed ‘balanced budget’ I just read that they are going to automatically increase our state tax withholdings by 10% with a ‘promise’ to give us our over payments when we file our taxes in 2011! Its time you look at your state payroll withholdings and change them to ensure you are not affected! I put the link to the EDD form below that you need to fill out and give to your employer!!

Of course this is all going into effect without any notification to employees. Employers have already been notified that they need to increase the withholdings based on the new calculations! They are hoping we will be “LAZY” and not change our deductions. I don’t know about you, but I’ve already ‘donated’ 3 days of my pay to the state and I can’t afford to have another 10% in any taxes taken out of EACH check! Its in your best interest to look into this-call an accountant or whatever-just don’t be LAZY!!! Or if you are, you will also be paying an additional 10% in state taxes each paycheck! And don’t wait until November-DO IT NOW!!!!! This is NOT just for “state” employees! Any person who works and earns a paycheck in California will be subject to this increase and business owners or self employed who pay estimated taxes are also affected!!!

http://www.news10.net/news/local/sto...=64236&catid=2

Budget Bites Into Tax Withholdings

SACRAMENTO, CA - Come November, you may notice your paycheck is a bit smaller. As part of the state budget fix, lawmakers are "borrowing" future income withholding taxes in order to raise $1.7 billion for this fiscal year.

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"It's not raising taxes. It's just getting the money, borrowing from you for a short period, non-interest bearing, and you'll get it back later," explained Sacramento accountant Ken Astle.

Astle said that taxpayers can file a DE-4 form to change withholdings and increase exemptions to compensate for the extra withholdings.

Taxpayers will get their money back come tax time in 2011, unless they underpaid their withholdings.

In addition, the state is also requiring individuals and business that make estimated tax payments to pay more earlier - another accounting move that is designed to help the state balance its budget this year.

Critics charge that the state is only delaying the task of balancing the budget without accounting gimmick s.

http://www.edd.ca.gov/pdf_pub_ctr/de4.pdf

 

I can't believe this is not being broadcasted all over California, I don't want to give another f%#@king cent of my hard earned money to anyone. First a rise in gas prices and car registration, then mandatory days off per month. Pay us less and tax us more aaaaahhhhhhhhhhhhh

 

While its a big deal that they are increasing tax withholdings without doing it very publicly, it isn't like they are taking 10% of your paycheck. They are withholding 10% more than they normally do. They are taking 10% of the 2% they are withholding currently making it 2.2% withheld. If you look at the link you posted and read it they give an example of a person making 75,000 dollars a year, in which case the new law withholds an extra 200 dollars for the year.

It sucks any time they take more money but chances are changing your claims may come back to bite you in the future when you are filing your taxes, leading to a smaller return or owing money. I am no accountant but I would suggest talking to one of you are concerned. They are "promising" to give it back in 2011 too which who knows what will actually happen. I personally don't think that there will be a substantially noticable affect on any paycheck.

Correct me if I'm wrong.

 

What can we do to avoid the 10% increase? You mentioned modifying the W2... PM me if the info is confidential

BTW I doubt the recession is gonna end any time soon. Probably going to last for another year at least.

 

i'm already getting taxed so much since i don't have any dependents/excemptions..

 

You can't avoid the 10% increase, it is mandatory as dictated by the state. What you can do is change your withholding amount/claims to lessen the blow to your paycheck, but like I said you run the risk of underpaying that way.

I claim 0 on one of my paychecks and 1 on the other since I am independent and not married, if I wanted I could claim myself on the second job and have less taken out

 

Dumb @ss govt is always trying to look for a way to take our money!!!!