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Efforts to Increase Disability Fund in CA Affect Taxpayers

Many areas in the U.S. are having trouble keeping up with the demand of Social Security disability benefits, as well as the need for similar programs. Some states have a plan to remedy this issue, however. California is one example, as the state has plans to get the State Disability Insurance fund back up to a respectable level by increasing the amount of taxes withheld from workers' paychecks.

According SFGate, the payroll tax was $500 in 2007, and will be over $1000 in 2010. The majority of employees in California will be affected by the increase, but the goal is to improve the increasingly needed SDI funds.

The California Employment Development Department reports that the tax equals about 1.1 % of wages, and that number will stay the same. However, since the wage ceiling associated with the tax will rise by nearly $3000 next year, the upper limit of the tax will go from just under $1000 to just over that number next year.

Many workers in the state may find the rate change perplexing because over the previous years, the fund became so large that the rate was permitted to be cut. However, as a result of both a lower tax rate and more people needing the disability benefits, there was a need to increase the rate in 2008. Of course, since then, more people have applied, forcing another rate increase.

There is good news as a result of the increase. The benefit for disabled people living in California was previously $959, but will rise to $987 in 2010. The benefit amount is based on the required amount to live in California. Of course, every state is different. If you have questions about your state's disability benefits, or Social Security disability in general, you are encouraged to contact a lawyer who specializes in this subject.

If you or your loved one are suffering from a severe physical or mental disability, you should contact a Social Security Disability lawyer immediately to learn about your rights and determine eligibility. The process of securing Social Security Disability Insurance benefits and/or Supplemental Security Income (SSI) can be difficult and overwhelming. Don't go it alone! The disability lawyers at LaVan & Neidenberg, located in Ft. Lauderdale, FL understand the inner workings of the Social Security Administration and will help you navigate the system. Call us today for a FREE legal consultation - 1-888-234-5758.