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Tuesday, December 24, 2024

California businesses are now shouldering the state's federal unemployment debt with higher payroll taxes

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.
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10 comments:

  1. No "the state failed to repay on time its $20 billion loan from the federal government" -forgiveness program?
    Joe's got four weeks.......

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  2. I hope it's true. Voting for idiots is, well idiotic. It should hurt. Too bad it's taking so lonngggg to happen.

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  3. Don't live in a communist place.

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  4. I think since good old greasy gavin and his dem colleagues forced the business to close they should be the ones paying it back. Lets start with a lien on all of their personal properties like gavin's two mansions. They should suffer the consequences' of their failures, just like everyone else.

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  5. For some reason, I find myself unable to give a fuque.

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  6. "California received $27 billion in stimulus, but state leaders opted to keep it and spend it on other items at a time when they boasted about the state's nearly $100 billion budget surplus."
    "As we work to make California more affordable...."
    Typical of Gov't, spend-spend-spend and never pay off debts along with just make the citizens pay more.

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  7. I think it's a nice touch that one suggested fix for businesses having to pay more because the state failed in their duties is to raise taxes on businesses. Don't look now but soon they will think of an extra $21 (or $63) as the good old days.

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    Replies
    1. 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. As of now, each employer, regardless of the number of employees they have and whether they are part or full-time, will pay an extra $21 dollars per employee on their payroll taxes. In 2026, the extra amount will increase to $42, in 2027 to $63, and increase another $21 per employee every year until it's paid off.

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  8. Someone needs to correct the lady interviewed, it wasn't covid, it was the government and lack of responsibility. NY and Cali, both screwing the people. And Grewsome is going to protect the illegals from deportation... Thats a double whammy on the businesses...
    GB

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  9. If the Government Officials know that 32 Billion dollars was fraud, then they must have a pretty good idea of who the fraudsters are. Are they interested?

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