The State Worker

Chronicling civil-service life for California state workers

December 23, 2011
What does Social Security tax extension mean for new retirees?

Thumbnail image for Thumbnail image for 100831 calculator.JPGAlthough Congress has extended the reduced Social Security payroll tax for at least two months, state workers' wages will be withheld at a higher rate on their Jan. 1 checks for reasons that we explained in Thursday's State Worker column.

Those employees will receive a refund on their Feb. 1 checks, said Jacob Roper, spokesman for State Controller John Chiang.

But what about state workers who are going to retire at the end of this month and won't be around to receive a February paycheck? Several thousand employees will fall into that category, since nearly a quarter of state workers who retire each year do so at the end of December.

State workers who enter retirement in January will receive a payroll tax refund check from the state, Roper said.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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