Neptune Aquatics

Get ready to feel the state crunch in your paycheck

seminolecpa

seminolecpa

Past President
BARcard
http://www.aroundthecapitol.com/Bills/ABX4_17/

In case you are like me and don't feel like giving the state an interest free loan, I would highly suggest you consult your tax advisor about changing your state withholding amounts by increasing your number of exemptions. California passed a bill that will "for wages paid on or after November 1, 2009,require the wage withholding tables to produce a sum that is equal to 10% more than the sum specified for purposes of the withholding
tables. This bill would, also increase the withholding rates to 6.6% for supplemental wages and to 10.23% for stock options and bonus
payments paid on or after November 1, 2009.

Effectively they are borrowing money from you with the intent of refunding it to you when you file your return. If last year is any indication with the IOU's issued for refunds, I don't get the warm fuzzy feeling that I would be getting my refund any time soon.
 
Yeah not exactly warm fuzzy feelings here either considering for whatever reason they're doing it, one of those reasons is not to invest it such that their loan makes interest, this is simply fancy book keeping to make it seem like there is more revenue than there really is only to have to give it when people file.

That being said I typically had 1 more withholding than I should have since early in my academic career (back in college) I got paid so little that I always got a refund (even then) however making some really bucks now... (over 20k a year :D) I got slapped with a penalty for withholding too much. So seems like you might be damned if you do, damned if you don't.
 
Probably best to contact your payroll department but here is where the forms are to change it (Form is the DE-4)

http://www.ftb.ca.gov/individuals/wsc/adjst_wgs.shtml
 
Messed up to say the least. Interest free loans??? Where do I sign up :lol:

I caught that last week and it pissed me off. Like you said about last year, don't expect a timely return from the state (of disgrace).
 
Doubtful... not at least until the series starts back up :lol:
 
I guess its good to pay estimated taxes (independent contractor). Although I do probably get taxed more than most because of that.
 
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