Attention all League members and, for that matter, everyone earning wages in California: A tax change passed by lawmakers in July as part of their attempt to deal with the budget crisis will impact your take-home pay starting in November. Under ABX4-17, on November 1, state tax withholdings for all wage earners will increase by another 10 percent. This means, for example, if you currently pay $100 in state taxes per pay period, you will soon see $110 withheld from your paycheck. While we didn’t find a great deal of media coverage on the topic, here are a few articles for more information:
“State to hike income tax,” The Signal (Santa Clarita Valley)
“Taxes: Paychecks to shrink beginning November 1,” North Coast Times
The state says that the money will be refunded to taxpayers who qualify for a rebate in 2010. According to tax experts, you can file a DE-4 form to change your withholdings and increase exemptions to compensate for the additional withholding amount. The form is available here.
Of course, it is always a good idea to check with a tax advisor to be sure you are withholding the proper amount from your wages.
