2022 Payroll Tax Issue

While SFUSD withheld state taxes from employees and paid them to the state, the District belatedly filed three quarterly reports to EDD which are needed for the state to determine the amount of taxes withheld by each employee.

SFUSD is working to provide EDD a complete record of our 2022 wage and payroll withholding reports. The 2nd, 3rd and 4th quarter reports were submitted to EDD on Friday, March 10. We learned in this process that there is a small number of employees whose files require additional attention. For quality assurance, SFUSD is actively reviewing and will submit these files no later than Friday, March 17, 2023 to EDD. 

EDD will reconcile the reports they receive with the tax withholdings SFUSD paid to the state. EDD will work with the Franchise Tax Board (FTB) to address the reported issues with employee tax filing and tax refunds. Due to a lag in the system’s processing time, you may still receive a notification from FTB in the meantime if you have filed your taxes. We will be following up with additional information as soon as possible.

As part of our reconciliation process, all W-2 data was analyzed to determine if the data matched the payroll tax reports. For the small group of employees with findings on their record during the reconciliation process, SFUSD will be issuing W-2Cs so that they are able to accurately file their 2022 taxes.

The issue that we have identified only relates to state tax filings. At this time, there are no known issues with individual federal tax files. However, out of an abundance of caution, staff will complete an in-depth review of the data and report on any irregularities identified should we discover a concern. 

No. The issue is associated with the district’s error in filing the 2022 quarterly state payroll tax reports with the Employment Development Department (EDD) and does not impact the accuracy of your tax statement (W-2). Your 2022 W-2s reports your earnings from 2022, has been vetted and is accurate.  

Please follow the directions in the notification you received and contact the FTB after March 31, 2023. You should be able to initiate the reprocessing of your tax refund request.

If you have filed your 2022 state tax return but have not yet received a notice from FTB, there is no action that needs to be taken at this time. You may not receive a notification and your refund will be processed correctly. However, due to a lag in the system’s processing time, you may still receive a notification from FTB. If you do receive the notification, we advise that you follow the directions in the notification you received and contact the FTB after March 31, 2023. This action should initiate the reprocessing of your tax return request.

If you have not yet filed your 2022 state tax return, you should consult a trusted tax advisor and file your tax return when they deem to be appropriate. If possible, filing after March 31 will reduce the risk delays to your 2022 tax return.

For SFUSD employees who are experiencing financial difficulty as a result of delayed tax refunds or would like to seek financial coaching, SFUSD is providing live financial advice through our partnership with BALANCE.