I love a lot of things about California. Coming from back east, I particularly like the weather which allows me to work out and play tennis outside year round. I also enjoy the ocean, the mountains and the ability to be in snow within a couple hours’ drive. What I don’t like is the way California treats small businesses. Los Angeles is particularly adversarial. I found that out when I moved my company from Glendale to the City of Los Angeles. I was welcomed with what is equivalent to a City Income Tax based upon the gross revenues of my firm. In other words, even if the firm lost money, I would still have to pay the tax. Los Angeles takes its cut first. Well, I just received notice from my payroll company that my 2015 FUTA payroll taxes will be increasing. Why? Because the State of California DEFAULTED on a loan that was made to them from The Federal Department of Labor. Thanks for letting me vent.
For more information: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FUTA-Credit-Reduction
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