CALIFORNIA STATE COMPLIANCE NOTICE

Temporary Disability Insurance — Effective for 2010, the State Disability Insurance tax rate will remain at 1.1 percent. The SDI wage base limit is scheduled to increase to $93,316 for 2010, and the maximum weekly benefit amount increases to $987.

Unemployment Insurance — Effective for 2010, the taxable wage base remains $7,000. Employer tax rates are determined under Schedule F+, which includes a 15 percent surcharge. Contribution rates range from 1.5 percent to 6.2 percent, including the surcharge. The employee training tax remains 0.1 percent for 2010.