Sacramento, CA – California workers will start seeing less money in their paychecks this month.
Beginning November 1st the state began mandating that employers withhold 10 percent more in state income taxes. It is a move that was placed into the budget package signed in February.
The California Franchise Tax Board claims the money will be returned after people file their tax returns at the end of the year, making this essentially a "cash advance" for the state to cover its current expenses.
The move is expected to accelerate the collection of $1.7 billion during the current fiscal year, resting on the shoulder of taxpayers.
Written by bjhansen@mlode.com.
This post was last modified on 11/04/2009 6:24 pm