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News & Press: Sacramento Report

Higher Business Taxes and New Employer Reporting in Two New Bills

Tuesday, March 20, 2018  
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Financial and employment burdens on business would increase under two new bills introduced in the Legislature. Senate Bill 1284 (Jackson) requires annual reporting by employers incorporated in California with 100 or more employees as to the number of employees by race, ethnicity and sex in 10 different employment categories. It also requires reporting of the number of employees identified by race, ethnicity and sex whose pay as shown by W-2 information are in certain pay bands used by the U.S. Bureau of Labor Statistics.

Senate Bill 1398 (Skinner) raises taxes on publicly traded companies based on a formula that examines the ratio of CEO pay to the median pay for all employees. The current 8.84% rate could go as high as 13% under the new legislation, which uses a formula comparing CEO pay to median employee pay to determine the tax rate. The bill would also increase the tax rate by 50% for taxpayers whose U.S. employees show a decrease in pay of more than 10% while the number of foreign employees increase.

California Land Title Association

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