Controller John Chiang's office has sent an update on the federal payroll tax that is withheld on state paychecks with a Jan. 1 issue date. As we reported last week, Congress passed an extension of the lower tax rate that was to expire this year, but did so two days after the controller's deadline to recalculate checks that assumed the higher rate.
This letter to all departments and universities that run their employee pay through the controller's office includes answers to five frequently asked questions about the situation:
CA State Controller's payroll update
PHOTO: John Chiang / 2010 Sacramento Bee file, Hector Amezcua