Interest rate on delinquent payroll taxes


The EDD announced that the interest rate on all delinquent payroll taxes, which includes withholding on personal income taxes, will be 5%, compounded daily, for the period January 1, 2023, through June 30, 2023. This is up from 3% for the period July 1, 2022, through December 31, 2022.  (EDD Interest Rates, www.edd.ca.gov/Payroll_Taxes/Interest_Rate.htm)

Interest is charged on all overdue payroll taxes, including Unemployment Insurance, Employment Training Tax, State Disability Insurance, and Personal Income Tax withholdings.