Sacramento, in large tax increases, gas tax increases ands small tax increases are forcing people to flee California. Already most Californians are paying over 50% of their income in taxes. Now we have a workplace increase.
“A spokesperson for California’s Employment Development Department, which administers and oversees the program, confirmed the SDI rate will increase from 1.1% to 1.2% in 2025. That means a couple or individual with $100,000 in taxable annual wages will have $100 more total withheld from their pay this upcoming year, or about $8 a month because of the tax increase, for example.”
Yes, $8 is barely a burger from Wendys or Jack in the Box, but it adds up. When will the workers revolt against the theft by government policies of the Democrats?
Why California workers will soon have a little more money taken out of their paychecks by the state
Ashley Zavala, KCRA, 12/11/24 https://www.kcra.com/article/california-worker-paychecks-tax-increase/63175484?utm_medium=email&utm_campaign=Email%20-%20Politics&utm_source=675c36da4a2104a27fac5558a95466ed&brzu=&lctg=674ce1b2d702e32b6be02398&[email protected]
SACRAMENTO, Calif. —
California workers will have a little more money withheld from their paychecks starting in January 2025 because of a small tax increase quietly approved by state officials to provide more money to the state’s disability insurance program.
A spokesperson for California’s Employment Development Department, which administers and oversees the program, confirmed the SDI rate will increase from 1.1% to 1.2% in 2025. That means a couple or individual with $100,000 in taxable annual wages will have $100 more total withheld from their pay this upcoming year, or about $8 a month because of the tax increase, for example.
The change impacts the vast majority of workers across the state, with the exception of those who work for certain public agencies or with collective bargaining agreements that do not pay into SDI.
“The State Disability Insurance program is funded by workers. In 2025, the amount of benefits an eligible worker can receive will be going up to better support working families so Californians can take time off work to recover from injury or illness or care for a loved one,” said Employment Development Department Deputy Director of Public Affairs Loree Levy in a written statement.
State law allows the EDD and its director, Nancy Farias, to raise the rate based on a complicated formula by small amounts. A spokesperson for the department did not say when exactly the decision was made.
EDD officials at first on Thursday said the increase was associated with a state law that boosts disability and paid family leave benefits, which was approved by the state legislature in 2022 under SB 951.
Greg Lawson, the Chief of the EDD’s Media Services section clarified in an email on Friday morning that the law has no impact on the 2025 increase. Under that law, starting Jan. 1, 2025, workers who make less than $63,000 a year will get 90% of their pay replaced for disability insurance and paid family leave benefits. Higher earners will get 70%. Before the legislation took effect, the rates were 60% for higher-income workers and 70% for lower-income workers, Levy noted. She said this will help make the programs more accessible to Californians who care for an ill family member, assist a military family member or bond with a new child.
And while the EDD said Friday the law has no impact on the rate increase immediately, the State Senate’s most recent analysis of SB 951 shows it will starting in 2027. The EDD said in the analysis that between 2027 and 2030, workers will contribute an extra .1% to .2% per year.
EDD officials said Thursday it would post more information about the program on the State Disability Insurance webpage later that day after KCRA 3 asked on Wednesday evening when the agency planned to inform taxpayers about the SDI tax increase.
The EDD did not do much to notify the public outside of posting the update on its website until KCRA 3 began asking about the change this week. The EDD, which issues numerous press releases, had yet to mention the change to journalists who cover the agency. The department also never posted about it on social media, which it posts to almost daily. A spokesperson for the EDD said the change was posted on its website by October 31. Taxpayer advocacy organization CalTax, first noticed the change on the website and posted about it publicly on X.
“The SDI is a very important program, it needs a tax to fund it, there’s no question there,” said David Kline, the vice president of communications and research for CalTax. “The issue is when money is coming out of your paycheck, you need to know.”
Kline noted before the start of 2024, there was a cap on how much of a worker’s pay was subject to this tax, but SB 951 of 2022 removed the cap and caused a large tax increase on higher-income Californians. State Sen. Maria Elena Durazo, who wrote SB 951, was not available for an interview on Thursday and did not comment on this story.
Before he was elected as Speaker of the Assembly, Robert Rivas coauthored the legislation. At the start of the legislative session earlier this month, Rivas vowed focus the Assembly’s attention on California’s cost of living and affordability issues. As of Friday, Rivas had not responded to a request for comment.
“Once again, California workers are paying the brunt of the fiscal policies of the majority party,” said Assemblyman Joe Patterson, R-Rocklin, in an interview with KCRA 3. “This comes just within days of the majority party and their leaders saying, ‘Hey, we want to reduce costs,’ so that doesn’t seem to be the trajectory that they’re on. It seems to be somewhat of a broken promise from what they said just a couple weeks ago.”
