Update 1:

Employers in California should know the state Employment Development Dept. released CA’s 2022 interest rates on delinquent payroll taxes. For the period of Jan. 1, 2022, through June 30, 2022, the interest rate will be 3% compounded daily (unchanged from 2021). This is the interest rate charged on all overdue taxes, including: Unemployment Insurance; Employment Training Tax; State Disability Insurance and Personal Income Tax withholding. This rate is subject to semiannual adjustment in January and June, based on short-term federal rates. CA’s Unemployment Insurance Code doesn’t allow the interest to be canceled or waived. Contact us with questions or visit this link: https://bit.ly/3dZFFXS

Update 2:

California’s statewide minimum wage rate will rise in 2022. The CA Dept. of Industrial Relations has announced that the statewide hourly minimum wage rate will rise to $15.00 for large employers (with at least 26 employees) and to $14.00 for smaller employers. In 2016, CA law required the state hourly minimum wage to reach $15.00 for large employers by 2022 and $15.00 for small employers by 2023. Most CA workers must be paid the state minimum wage, but many cities and counties have adopted local minimum wage rates that are higher than the state rate. Employers must post this information in a worksite area that is accessible to employees. Here’s more: https://bit.ly/3sCyYUz

Update 3:

The electrical energy surcharge rate for California has been announced. For 2022, the rate will remain at $0.0003 per kilowatt-hour. The CA Energy Commission determines the electrical energy surcharge rate each November for the following calendar year. The surcharge is imposed on electrical energy consumed in CA that is purchased from an electrical utility.

Update 4:

Another California city raises its minimum wage rate. In 2022, Menlo Park will increase its hourly minimum wage from $15.25 to $15.75. The $.50 per hour increase reflects the annual inflation protection adjustment of 4.9% for the San Francisco area. This adjustment was as measured from August 2020 to August 2021 by the U.S. Bureau of Labor Statistics. Here’s a link to the required Notice to Employees: https://bit.ly/33sIdfp

Update 5:

New sales and use tax rates for California are now available. The CA Dept. of Tax and Fee Administration (CDTFA) has updated its rate schedules, which will take effect on Jan. 1, 2022. Rates are listed by county and city, though some communities within a county or city may not be included. Here’s the CDTFA schedule: https://bit.ly/3rKQxkS

If you have questions, please contact your Linkenheimer CPA.