California is struggling to repay its $21 billion debt to the Federal government for advances to state unemployment funds. This debt, largely due to the unemployment surge caused by COVID-19 and the subsequent fraud, is the highest among the states. This could result in California employers seeing a rise in unemployment insurance costs to more than 3.5% for the first $7,000 of every employee’s earnings. Along with state UI Reserve Account payments, this could increase to over $500 annually per employee. The dilemma has been worsened by the state’s unemployment rate, remaining steady at 5.3%, a notable increase from the national rate of 3.8%. If unemployment continues to rise in California, it will further strain the system and could lead to higher taxes.

For those in the state of California needing help navigating this complex situation, the Department of Employment Development (EDD) can be a valuable resource. Many may question how to get a hold of edd. You can contact the edd customer service via phone, email, or through the website. They can assist with questions regarding your unemployment benefits, how to file a claim, and ways to manage your existing claim. Visit eddcaller.com for further assistance in getting through to edd customer service.