Beginning Nov. 1, employers will increase state income tax withholdings from paychecks by 10 percent, in compliance with new state tax withholding tables.
However, California's income tax for 2009 has not increased, meaning any overpayment this year would be returned after filing 2009 tax returns next year.
"This is not an increase in tax. It's just an increase in withholding," affirmed Brenda Voet, a spokeswoman with the state Franchise Tax Board.
The withholding changes are designed to accelerate payments to California's recession-battered state coffers.
"They're just borrowing money at no interest
from you," said John Cameron, a certified public accountant with Brigante Cameron Watters in Torrance, of the state's action.
However, the two months of increased withholdings may be too small for many people to notice or even care, according to Cameron and two other local CPAs contacted for this article.
Cameron said he had not heard from any clients upset about the withholding changes.
"I suspect they're not even aware of it," Cameron said. "Some people will notice it, the detailed people. But others will just let it go and won't notice it. And they'll just get it back (after filing taxes)."
Stephen Love, of Piazza Donnelly & Marlette in Torrance, said: "I haven't seen an uproar yet."
Before the changes, a married person with two dependents and no withholding allowances had $34.08 withheld each week for state income taxes on wages of $1,211.54, according to a Franchise Tax Board table.
In November and December, that same person would have an additional $3.41 a week withheld from his paycheck. The total withholding amount would then be $37.49.
Income tax withholding also will increase for supplemental wages -- such as bonuses and leave payouts on a final check. Those withholdings will rise by 10 percent, from 6 percent to 6.6 percent.
A call seeking comment from the Howard Jarvis Taxpayers Association, a Los Angeles-based tax watchdog group, was not returned.
If employees do not want to have more money taken out of their paychecks in November and December, they can simply file new W-4 tax forms with the employer's payroll department, Cameron said.
"They can change their withholding back to what it was as soon as the payroll department can," Cameron said.
Voet, from the Franchise Tax Board, said the withholding changes may spur people to rethink their tax arrangements.
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