Additional Taxes on Employers

 I completely understand why nobody wants employees -- especially in California.  For starters, CA has the most restrictive employment laws in the world.  Employers are to pay for and provide just about everything imaginable for the employee, including places to breast feed their babies and to also provide toilets with a luxury brand of toilet paper that the employees claim does not chap their @sses.  

You think I'm making this up.

Gavin Newsom, who is the governor of California, has hopes of federal office someday despite his statements to the contrary.  We all know politicians lie.  This is his sure fire admission of his ambition.  

Here's where Newsom will get into a quagmire.  His California is in big trouble.  The rest of the nation knows it and wants nothing to do with it.  We have the highest taxes (on the so-called rich) coupled with the highest poverty.  If high taxes solved everything, California would be a model for the world.  

Cough.  Cough.  High taxes have backfired.  Big Time.

"Oh, California has a HUGE budget surplus and the state is awash in CASH," gushed the governor not so very long ago to the point of issuing checks (read:  bribes) to residents.

Really?  I pondered this question not so very long ago myself in a previous blog.  I correctly predicted that this sudden influx of cash was fools gold accompanied by CA legislative foolish behavior.  Nobody wanted to listen to me then.  

Where am I going with this?  California is in trouble.  California caters to illegal immigrants.  Democrats use illegals as a potential voting base by playing Santa Claus to them by giving them everything they want, i.e., free health care, free education, subsidized housing, etc.  The problem is that NOTHING IS FREE.  Every handout is at the expense of somebody else PAYING for it.  Meanwhile, hard-working, legal, Californians are struggling.  Nobody cares about them as they don't produce emotionally provoking headlines in the media. 

Republicans LOVE illegal immigrants as their slave work force.  They use them for cash-under-the-table jobs that are lower than legitimate employers can offer.  Sure, it's easy to give a low bid if the employer ducks workers' compensation insurance and does not pay into Social Security or other payroll tax obligations.  

I will venture to say that even democrats LOVE the illegal work force for the very same reasons republicans do.  They just won't publicly admit it.  

Well, well, well.......CA needs to collect even more payroll taxes to cover the enormous debt.  There is an additional FUTA tax and also an additional CA SDI tax on employers that somehow went unreported by mainstream media.   

Did I mention the mandatory additional sick pay to CA employees? 

No wonder employers are leaving CA in droves.  No wonder why nobody wants an employee in CA and everybody wants to classify them as an 'independent contractor.'  It's simply unaffordable otherwise.  

Texas????  Ohio????  Pennsylvania? ??????  Brace yourselves for the wave of middle to upper-income CA residents getting taxed to death.  

Don't believe me?  Here's a notice I got from QuickBooks payroll about the additional taxes ON EMPLOYERS because California has defaulted on their unemployment loans from the feds.  Why doesn't pretty boy Newsom or the media ever talk about THIS????????  Because it looks like shit on the democrats, that's why.  If the shoe fits...........

Dear Valued Customer,

Due to outstanding federal unemployment loans, CA and NY are subject to FUTA Credit Reduction for 2023. This means New York and California businesses will be assessed additional FUTA taxes on the Form 940 payment and filing for 2023. What is a credit reduction state? Some states take loans from the Federal Unemployment Trust Fund if they lack the funds to pay unemployment insurance benefits for residents of their states. If a state has outstanding loan balances for two consecutive years, the FUTA credit rate for employers in that state will be reduced until the loan is repaid.  This results in employers owing additional unemployment tax. You can get more information about the increased taxes and determine the rate increase for your state in our FUTA help article. What do I need to do? We will notify you by email in mid-January of the exact amount due so that you can ensure that the appropriate funds are available. Intuit will process debits for the additional tax owed after January 15.  In addition, we will prepare and file your Form 940 and Schedule A and pay the taxes due on your behalf by the January 31, 2024 deadline. To estimate the additional taxes you will owe, calculate the total 2023 wages paid for each employee in a credit reduction state, up to the maximum of $7,000. Multiply this by the percentage indicated for your state. To review a report with your 2023 FUTA wages: From your Assisted Payroll company file in QuickBooks Desktop, select the Reports menu, Employees & Payroll, then Payroll Item Detail Click Customize Report Select the Filters tab. Scroll down on the Filters list and select Payroll Item From the Payroll Item dropdown, select Federal Unemployment, then click OK Set the date range to January 1, 2023 through December 31, 2023 View your Total 940 FUTA wages from the Wage Base column of the report If you have employees in multiple states,you will need to calculate the FUTA wages for employees in each credit reduction state (CA and NY). We hope this notification helps your business prepare for the additional tax liability due in January for Federal Unemployment Tax. Sincerely, The QuickBooks Team

CA and NY are FUTA credit reduction states for 2023