Businesses across California are now paying more on their payroll taxes to the federal government because of spending decisions the state's legislature and governor made within the last couple of years.
The state failed to repay on time its $20 billion loan from the federal government that helped with California's unemployment costs during the pandemic. The state forced businesses to close during COVID-19, leaving many jobless and in need of unemployment pay. State officials have said California ended up paying more than $200 billion in benefits, more than $32 billion of which was the subject of fraud.
