New Income Tax Rate for Proposition 30
With the passing of Proposition 30, there are some changes you will need to make in Escape Online to comply with the new law. As you may know, the personal income tax rate for employees making more than $250,000 per year has changed retroactively to apply to earnings made this year and for the next seven years.
As you may also know, there are very few school business employees with gross pay equal to or exceeding 250K.
AND, as you may also know, there may be more personal income tax changes coming from the Federal government in 2013.
Since so few employees are effected by the changes required by Proposition 30 (most customers we have queried have no effected employees), we are suggesting that payroll technicians simply add an extra amount for SIT to employees with gross annual earnings over 250K.
This is a temporary work-around to reduce the load of creating, installing and testing new tax tables at an already busy time of year. Once the Federal government determines the new tax rates for calendar year 2013, Escape Technology will send out updated tables for all customers.
Here is a handy link to the press release concerning the Proposition 30 personal income tax changes on the California Franchise Tax Board web site.