Businesses large and small across California are paying even more on their payroll taxes to the federal government this year because of spending decisions the state’s Legislature and governor made within the last few years.
California is the only state in the nation that has not paid its pandemic unemployment debt to the federal government.
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The Trump administration in 2020 provided the state with a $20 billion loan to cover unemployment costs during COVID-19. California leaders shut down schools and businesses during COVID-19, which resulted in the state’s major need for federal help with unemployment insurance.
Every state, except California and New York, paid the loan back with federal stimulus money, which was a debt-repayment strategy offered by the Biden administration. California lawmakers and the governor chose to hold onto those funds and use them for other expenses instead of putting it toward the loan.
Since the state did not pay back the debt within two years, federal law requires the state’s employers to step in and pay up. Each employer this upcoming year, regardless of the number of employees they have and whether they are part or full-time, will pay an extra $42 dollars per employee on their payroll taxes because of the debt. In 2027 the number increases to $63 and increases another $21 per employee every year until the debt is paid.
“It creates another disincentive to be able to scale and grow jobs here,” said Rob Lapsley, the President of the California Businesses Roundtable, in an interview on California Politics 360. The group lobbies on behalf of some of the state’s largest employers at the state capitol.
“That debt is increasing annually and now it’s become a problem for both large and small businesses,” Lapsley said.
Quote .. federal law requires the state’s employers to step in and pay up. Each employer this upcoming year, regardless of the number of employee….””””
The Greedy types like Weenie, Slick, Lemon, and more decided it is our right to hold onto the money.
Even though Biden and the Dem’s in Washington gave them a “ethcical?” way out.
If you do business in the State of Kalif. understand that the Radical Socialist Party doesn’t give a heck about you and your needs to operate and exist. (You know provide jobs for people).
Laugh you voted for them. You decided Socialism and Communism is more important then making a living.
You decided that even though SCG has carbon neutral products you will make CAP ‘N TRADE take more money.
Forget the stupid $16+ hour minimum wage driving up everyday expenses. Forget the Volero refinery that is closing that can drive up the cost of gas to above $10 gal. as most of the rest of the nation is paying under $3 gal. Forget that most of all the goods services and food pays these taxes.
You voted for them. Look in the mirror you are the problem.