The department shall have the powers and duties necessary to administer the reporting, collection, refunding to the employer, and enforcement of taxes required to be withheld by employers pursuant to Section 13020, except as otherwise provided by this division.
Chapter 1General Provisions
Section § 13000
This law gives the department the authority to handle everything related to taxes that employers need to withhold, like managing reports, collecting the money, giving refunds to employers, and making sure the rules are followed. However, there might be exceptions in other parts of this division.
tax withholding administration employer tax responsibilities tax enforcement tax refunding to employers withholding tax collection employer tax reporting Section 13020 tax regulations withholding enforcement employer compliance tax refund process withholding exceptions tax administration duties
Section § 13001
This law section refers to definitions from several other sections that also apply to this division of the code. It's essentially saying that if you want to understand the terms used here, you should look at those other sections for their meanings.
The definitions set forth in Sections 126, 127, 129, 133, 134, and 144 shall apply to this division.
Section 126 definitions Section 127 definitions Section 129 definitions Section 133 definitions Section 134 definitions Section 144 definitions applied definitions division-specific terms cross-reference definitions definition applicability legal term interpretation statutory definitions
Section § 13002
This law section explains which other rules and procedures from the code apply when money has to be deducted, reported, and paid to the department. It lists specific parts of the code that cover administrative powers, appeals, how to file returns or pay contributions, assessments, handling refunds and overpayments, giving notices, administrative and judicial reviews, as well as handling collections and violations.
The following provisions of this code shall apply to any amount required to be deducted, reported, and paid to the department under this division:
(a)CA Unemployment Insurance Code § 13002(a) Sections 301, 305, 306, 310, 311, 317, and 318, relating to general administrative powers of the department.
(b)CA Unemployment Insurance Code § 13002(b) Sections 403 to 413, inclusive, Section 1336, and Chapter 8 (commencing with Section 1951) of Part 1 of Division 1, relating to appeals and hearing procedures.
(c)CA Unemployment Insurance Code § 13002(c) Sections 1110.6, 1111, 1111.5, 1112, 1112.1, 1112.5,
1113, 1113.1, 1114, 1115, 1116, and 1117, relating to the making of returns or the payment of reported contributions.
(d)CA Unemployment Insurance Code § 13002(d) Article 8 (commencing with Section 1126) of Chapter 4 of Part 1 of Division 1, relating to assessments.
(e)CA Unemployment Insurance Code § 13002(e) Article 9 (commencing with Section 1176), except Section 1176, of Chapter 4 of Part 1 of Division 1, relating to refunds and overpayments.
(f)CA Unemployment Insurance Code § 13002(f) Article 10 (commencing with Section 1206) of Chapter 4 of Part 1 of Division 1, relating to notice.
(g)CA Unemployment Insurance Code § 13002(g) Article 11 (commencing with Section 1221) of Chapter 4 of Part 1 of Division 1, relating to administrative appellate review.
(h)CA Unemployment Insurance Code § 13002(h) Article 12 (commencing with Section 1241) of Chapter 4 of Part 1 of
Division 1, relating to judicial review.
(i)CA Unemployment Insurance Code § 13002(i) Chapter 7 (commencing with Section 1701) of Part 1 of Division 1, relating to collections.
(j)CA Unemployment Insurance Code § 13002(j) Chapter 10 (commencing with Section 2101) of Part 1 of Division 1, relating to violations.
deduction requirements reporting obligations payment to department administrative powers appeals procedures hearing processes filing returns assessment rules refunds and overpayments notice provisions administrative review judicial review collections processes legal violations payment compliance
Section § 13003
This section explains that certain definitions from the California Revenue and Taxation Code are incorporated into and govern the interpretation of this division. It specifies definitions such as 'corporation', 'partnership', 'resident', and more, referencing other sections for their meanings.
Furthermore, it adopts specific Revenue and Taxation Code provisions related to business expenses, retirement savings deductions, corporate property distributions, deferred compensation, partnerships, nonresident income, deadlines for Armed Forces members, and information disclosure. The section clarifies that 'Franchise Tax Board' means 'Employment Development Department' for information gathered under this division.
(a)CA Unemployment Insurance Code § 13003(a) Except where the context otherwise requires, the definitions set forth in this chapter, and in addition the definitions and provisions of the Personal Income Tax Law referred to and hereby incorporated by reference as set forth in the following provisions of the Revenue and Taxation Code, shall apply to and govern the construction of this division:
(1)CA Unemployment Insurance Code § 13003(a)(1) “Corporation” as defined by Section 17009.
(2)CA Unemployment Insurance Code § 13003(a)(2) “Fiduciary” as defined by Section 17006.
(3)CA Unemployment Insurance Code § 13003(a)(3) “Fiscal year” as defined by Section 17011.
(4)CA Unemployment Insurance Code § 13003(a)(4) “Foreign country” as defined by Section 17019.
(5)CA Unemployment Insurance Code § 13003(a)(5) “Franchise Tax Board” as defined by Section 17003.
(6)CA Unemployment Insurance Code § 13003(a)(6) “Spouse” as defined by Section 17021.
(7)CA Unemployment Insurance Code § 13003(a)(7) “Individual” as defined by Section 17005.
(8)CA Unemployment Insurance Code § 13003(a)(8) “Military or naval forces” as defined by Section 17022.
(9)CA Unemployment Insurance Code § 13003(a)(9) “Nonresident” as defined by Section 17015.
(10)CA Unemployment Insurance Code § 13003(a)(10) “Partnership” as defined by Section 17008.
(11)CA Unemployment Insurance Code § 13003(a)(11) “Person” as defined by Section 17007.
(12)CA Unemployment Insurance Code § 13003(a)(12) “Resident” as defined by Sections 17014 and 17016.
(13)CA Unemployment Insurance Code § 13003(a)(13) “State” as defined by Section 17018.
(14)CA Unemployment Insurance Code § 13003(a)(14) “Taxable year” as defined by Section 17010.
(15)CA Unemployment Insurance Code § 13003(a)(15) “Taxpayer” as defined by Section 17004.
(16)CA Unemployment Insurance Code § 13003(a)(16) “Trade or business” as defined by Section 17020.
(17)CA Unemployment Insurance Code § 13003(a)(17) “United States” as defined by Section 17017.
(b)CA Unemployment Insurance Code § 13003(b) The provisions of Part 10 (commencing with Section 17001) and Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code, relating to the following items, are hereby incorporated by reference and shall apply to and govern construction of this division:
(1)CA Unemployment Insurance Code § 13003(b)(1) Trade or business expense (Article 6
(commencing with Section 17201) of Chapter 3 of Part 10).
(2)CA Unemployment Insurance Code § 13003(b)(2) Deductions for retirement savings (Article 6 (commencing with Section 17201) of Chapter 3 of Part 10).
(3)CA Unemployment Insurance Code § 13003(b)(3) Distributions of property by a corporation to a shareholder (Chapter 4 (commencing with Section 17321) of Part 10).
(4)CA Unemployment Insurance Code § 13003(b)(4) Deferred compensation (Chapter 5 (commencing with Section 17501) of Part 10).
(5)CA Unemployment Insurance Code § 13003(b)(5) Partners and partnerships (Chapter 10 (commencing with Section 17851) of Part 10).
(6)CA Unemployment Insurance Code § 13003(b)(6) Gross income of nonresident taxpayers (Chapter 11 (commencing with Section 17951) of Part 10).
(7)CA Unemployment Insurance Code § 13003(b)(7) Postponement of the time for certain acts by individuals in or in support of
the Armed Forces (Article 3 (commencing with Section 18621) of Chapter 2 of Part 10.2).
(8)CA Unemployment Insurance Code § 13003(b)(8) Disclosure of information (Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2). For this purpose “Franchise Tax Board” as used therein shall mean the Employment Development Department in respect to information obtained in the administration of this division.
corporation definition fiduciary fiscal year foreign country military forces nonresident partnership resident definition taxable year business expenses retirement savings deductions property distributions deferred compensation nonresident income information disclosure
Section § 13004
This section defines an 'employee' as anyone receiving payment for work done, whether they're a resident working inside or outside California or a nonresident working within California. It also includes those holding official positions in government, like officers or elected officials, and corporate officers. The law clarifies that owning equipment used for work does not affect whether someone is considered an employee.
“Employee” means a resident individual who receives remuneration for services performed within or without this state or a nonresident individual who receives remuneration for services performed within this state and includes an officer, employee, or elected official of the United States, a state, territory, or any political subdivision thereof, or any agency or instrumentality of any one or more of the foregoing. “Employee” also includes an officer of a corporation.
Whether an individual provides equipment in the performance of services for remuneration shall not be considered in a determination of whether that individual is an employee.
employee definition nonresident worker resident individual remuneration for services government officials corporate officer inclusion equipment ownership work performance payment for services employment status determination
Section § 13004.1
This section specifies who is not considered an 'employee' under certain conditions. It applies to individuals who are either licensed real estate agents or who sell consumer products through direct sales or presentations in homes, and not through retail stores. Their pay must be mainly based on sales commissions, not hours worked. They also need to have a written contract stating they're not treated as employees for state tax purposes.
“Employee” does not include any individual if all of the following conditions exist:
(a)CA Unemployment Insurance Code § 13004.1(a) The individual is licensed pursuant to the provisions of Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code and is performing services in the capacity of a licensee, or the individual is engaged in the trade or business of primarily in-person demonstration and sales presentation of consumer products, including services or other intangibles, in the home or sales to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis, for resale by the buyer or any other person in the home or otherwise than in a retail or wholesale establishment.
(b)CA Unemployment Insurance Code § 13004.1(b) Substantially all of the remuneration (whether or not paid in cash) for the services performed by that individual is directly related to sales or other output (including the performance of services) rather than to the number of hours worked by that individual.
(c)CA Unemployment Insurance Code § 13004.1(c) The services performed by the individual are performed pursuant to a written contract between that individual and the person for whom the services are performed and the contract provides that the individual will not be treated as an employee with respect to those services for state tax purposes.
independent contractor real estate agents consumer product sales direct sales commission-based pay home sales presentation written contract state tax purposes non-employee status sales output services contract licensee services business and professions code buy-sell basis deposit-commission basis
Section § 13004.5
This law explains who qualifies as an 'employee' in the context of contractor work. It includes two situations. First, an 'employee' is someone working for a licensed contractor. Second, even if the employer doesn't have a valid contractor license but should have one, their workers are still considered 'employees.'
(a)CA Unemployment Insurance Code § 13004.5(a) “Employee” also means any individual who is an employee pursuant to Section 2750.5 of the Labor Code, of a person who holds a valid state contractor’s license pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code.
(b)CA Unemployment Insurance Code § 13004.5(b) When subdivision (a) does not apply, “employee” shall also mean any individual who is an employee, pursuant to Section 2750.5 of the Labor Code, of a person who is required to obtain a valid state contractor’s license pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code.
employee definition licensed contractor unlicensed contractor Labor Code Section 2750.5 business license requirements contractor workforce state contractor's license construction employment worker status contractor compliance California employee classification license mandate contractor regulations employment criteria
Section § 13004.6
This law states that for a limited liability company (LLC) considered a partnership by federal tax rules, members of that LLC are not classified as 'employees.'
“Employee” does not include any member of a limited liability company that is treated as a partnership for federal income tax purposes.
LLC member federal tax purposes partnership classification employee exclusion limited liability company partnership treatment tax status member classification non-employee status LLC partnership income tax employment definition California employment law business entity classification IRS partnership treatment
Section § 13005
This section defines who is considered an "employer" in California for purposes related to unemployment insurance. It includes a wide range of entities like individuals, corporations, and various types of organizations that pay wages to employees for work done within California. The definition is broad and includes entities even if they are not directly under California's jurisdiction. However, it excludes certain cases outlined in subdivision (b).
Subdivision (b) adds that if the entity defined as the "employer" in subdivision (a) does not control the payment of wages, then the responsibility of an "employer" falls to the person who does control wage payment, regardless of their jurisdictional ties to California, except in a different context specified by Section 13009.
(a)CA Unemployment Insurance Code § 13005(a) “Employer” means any individual, person, corporation, association, partnership, or limited liability company, or any agent thereof, doing business in this state, deriving income from sources within this state, or in any manner whatsoever subject to the laws of this state, the State of California or any political subdivision or agency thereof, including the Regents of the University of California, any city organized under a freeholders’ charter, or any political body not a subdivision or agency of the state, and any person, officer, employee, department, or agency thereof, making payment of wages to employees for services performed within this state, except as provided in subdivision (b).
(b)CA Unemployment Insurance Code § 13005(b) If the employer, as defined in subdivision (a), for whom the employee performs or performed the service does not have control of the payment of wages for such services, “employer” (except for purposes of Section 13009) means the person having control of the payment of such wages, whether or not the person having control of the payment of such wages is subject to the jurisdiction of the laws of this state.
employer definition wage payment control unemployment insurance California jurisdiction wage payer corporations individuals business entities charters political subdivisions university regents freeholders' charter political bodies wages payment exception services performed in California
Section § 13005.7
This law states that if all certain conditions outlined in another law (Section 687.2) are met, an employment agency that helps find jobs for domestic workers is not considered the employer of those workers.
An employment agency, as defined in paragraph (3) of subdivision (a) or (h) of Section 1812.501 of the Civil Code shall not be deemed the employer of the domestic worker for whom it procures, offers, refers, provides, or attempts to provide work if all of the factors set forth in Section 687.2 exist.
employment agency domestic worker employer work referral job procurement Section 687.2 Civil Code conditions employment relationship legal responsibility job placement services non-employer status California employment law
Section § 13006
This section defines 'gross income' for the purpose of compensation for services. It says 'gross income' includes all forms of payment, like fees and commissions, unless specified otherwise. It also specifically includes certain compensation types mentioned in one part of the tax code and excludes others mentioned in a different part of the tax code.
“Gross income” means all compensation for services including fees, commissions, and similar items, except as otherwise provided by this division. “Gross income” shall specifically include those items relating to compensation specified by Article 2 (commencing with Section 17081) of, and shall specifically exclude those items relating to compensation specified by Article 3 (commencing with Section 17131) of, Chapter 3 of Part 10 of Division 2 of the Revenue and Taxation Code.
gross income compensation fees commissions Revenue and Taxation Code Article 2 compensation Article 3 exclusions services payment income definition tax code references inclusive compensation items exclusive compensation items
Section § 13007
This section defines a 'miscellaneous payroll period' as any payroll schedule that doesn't follow the common patterns like daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual.
“Miscellaneous payroll period” means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.
miscellaneous payroll period payroll schedule uncommon payroll periods non-standard payroll alternative payroll timing payroll frequency payroll period definition unusual payroll cycle flexible payroll period atypical payroll schedule irregular payroll intervals non-traditional payroll period payroll categorization variable payroll period
Section § 13008
This section defines a 'payroll period' as the time frame for which employees usually receive their wages from their employer.
“Payroll period” means a period for which a payment of wages is ordinarily made to the employee by his or her employer.
payroll period wages payment employee wages employer payment cycle wage period wage payment schedule payment interval pay schedule employee pay cycle standard payroll cycle
Section § 13009
This section defines what counts as 'wages' for employees. Typically, wages cover all forms of payment for work, including non-cash payments and tips. There's an exception for amounts paid to public officials and specific exemptions where compensation does not count as wages, such as agricultural and domestic labor, services for certain organizations, youth newspaper delivery, clergy duties, and payments made under certain plans or as part of an exempt trust.
Also excluded are specific categories like compensation for foreign government employees, ministers, certain seamen, fishermen under particular conditions, and medical care reimbursements. Additionally, certain payments that qualify for taxpayer deductions, like moving expenses, are not considered wages.
“Wages” means all remuneration, other than fees paid to a public official, for services performed by an employee for their employer, including all remuneration paid to a nonresident employee for services performed in this state, and the cash value of all remuneration paid in any medium other than cash, except as provided by this section. “Wages” includes tips received by an employee in the course of employment. The wages shall be deemed to be paid at the time a written statement including tips is furnished to the employer pursuant to Section 13055 or, if no statement including those tips is so furnished, at the time received. “Wages” includes compensation, that is deductible under Section 162 of the Internal Revenue Code, paid to a member of a limited liability
company filing a federal corporate income tax return.
“Wages” shall not include remuneration paid under any of the following conditions:
(a)CA Unemployment Insurance Code § 13009(a) For agricultural labor, as defined in subdivision (g) of Section 3121 of the Internal Revenue Code.
(b)CA Unemployment Insurance Code § 13009(b) For domestic service in a private home, local college club, or local chapter of a college fraternity or sorority.
(c)CA Unemployment Insurance Code § 13009(c) For service not in the course of the employer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for that service is fifty dollars ($50) or more and the service is performed by an individual who is regularly employed by the employer to perform the service. For
purposes of this subdivision, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if either of the following conditions is met:
(1)CA Unemployment Insurance Code § 13009(c)(1) On each of some 24 days during the quarter, the individual performs for the employer for some portion of the day service not in the course of the employer’s trade or business.
(2)CA Unemployment Insurance Code § 13009(c)(2) The individual was regularly employed, as determined under paragraph (1), by the employer in the performance of the service during the preceding calendar quarter.
(d)CA Unemployment Insurance Code § 13009(d) For services by a citizen or resident of the United States for a foreign government or an international organization.
(e)CA Unemployment Insurance Code § 13009(e) For
services performed by a nonresident individual who is not a citizen or national of the United States as designated by regulations prescribed by the department.
(f)CA Unemployment Insurance Code § 13009(f) For services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of their ministry or by a member of a religious order in the exercise of duties required by the order.
(g)Copy CA Unemployment Insurance Code § 13009(g)
(1)Copy CA Unemployment Insurance Code § 13009(g)(1) For services performed by an individual under the age of 18 years in delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.
(2)CA Unemployment Insurance Code § 13009(g)(2) For services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate
consumers, under an arrangement under which the newspapers or magazines are to be sold by the individual at a fixed price, the individual’s compensation being based on the retention of the excess of the price over the amount at which the newspapers or magazines are charged to the individual whether or not the individual is guaranteed a minimum amount of compensation for the services, or is entitled to be credited with the unsold newspapers or magazines turned back.
(h)CA Unemployment Insurance Code § 13009(h) For services not in the course of the employer’s trade or business, to the extent paid in any medium other than cash.
(i)CA Unemployment Insurance Code § 13009(i) To, or on behalf of, an employee or their beneficiary under any of the following situations:
(1)CA Unemployment Insurance Code § 13009(i)(1) From or to a trust which is
exempt from tax under Section 17631 of the Revenue and Taxation Code at the time of payment, unless the payment is made to an employee of the trust as remuneration for services rendered as an employee and not as a beneficiary of the trust.
(2)CA Unemployment Insurance Code § 13009(i)(2) Under or to an annuity plan which, at the time of payment, is a plan qualified pursuant to Chapter 5 (commencing with Section 17501) of Part 10 of Division 2 of the Revenue and Taxation Code.
(3)CA Unemployment Insurance Code § 13009(i)(3) Under or to a bond purchase plan which, at the time of payment, is a bond purchase plan qualified pursuant to Chapter 5 (commencing with Section 17501) of Part 10 of Division 2 of the Revenue and Taxation Code.
(4)CA Unemployment Insurance Code § 13009(i)(4) For a payment which qualifies for deduction by an employee pursuant
to Section 219 of the Internal Revenue Code if, at the time of payment, it is reasonable to believe that the employee will be entitled to a deduction under that section for payment.
(5)CA Unemployment Insurance Code § 13009(i)(5) Under a cafeteria plan (within the meaning of Section 125 of the Internal Revenue Code).
(j)CA Unemployment Insurance Code § 13009(j) To a master, officer, or any other seaman who is a member of a crew on a vessel engaged in foreign, coastwise, intercoastal, interstate, or noncontiguous trade.
(k)CA Unemployment Insurance Code § 13009(k) Pursuant to any provision of law other than Section 5(c) of the Peace Corps Act (22 U.S.C. Sec. 2504(c)) or 6(1) of the Peace Corps Act (22 U.S.C. Sec. 2505(1)), for service performed as a volunteer or volunteer leader within the meaning of that act.
(l)CA Unemployment Insurance Code § 13009(l) In the form of group-term life insurance on the life of an employee.
(m)CA Unemployment Insurance Code § 13009(m) To or on behalf of an employee, and to the extent that, at the time of the payment of remuneration it is reasonable to believe that a corresponding deduction is allowable for moving expenses pursuant to Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 of Division 2 of the Revenue and Taxation Code.
(n)Copy CA Unemployment Insurance Code § 13009(n)
(1)Copy CA Unemployment Insurance Code § 13009(n)(1) As tips in any medium other than cash.
(2)CA Unemployment Insurance Code § 13009(n)(2) As cash tips to an employee in any calendar month in the course of employment by an employer, unless the amount of the cash tips is twenty dollars ($20) or more.
(o)CA Unemployment Insurance Code § 13009(o) For service performed by an
individual on a boat engaged in catching fish or other forms of aquatic animal life under an arrangement with the owner or operator of the boat pursuant to which all of the following apply:
(1)CA Unemployment Insurance Code § 13009(o)(1) The individual does not receive any cash remuneration, other than as provided in paragraph (2).
(2)CA Unemployment Insurance Code § 13009(o)(2) The individual receives a share of the boat’s (or the boats’ in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic animal life or a share of the proceeds from the sale of the catch.
(3)CA Unemployment Insurance Code § 13009(o)(3) The amount of the individual’s share depends on the amount of the boat’s (or the boats’ in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic
animal life.
This subdivision shall apply only where the operating crew of the boat (or each boat from which the individual receives a share in the case of a fishing operation involving more than one boat) is normally made up of fewer than 10 individuals.
(p)CA Unemployment Insurance Code § 13009(p) For any medical care reimbursement made to, or for the benefit of, an employee under a self-insured medical reimbursement plan pursuant to Section 105(h)(6) of the Internal Revenue Code.
(q)CA Unemployment Insurance Code § 13009(q) To, or on behalf of, an employee to the extent not includable in gross income pursuant to Section 13006.
(r)CA Unemployment Insurance Code § 13009(r) For services to which Section 633 applies.
wages definition employee remuneration non-cash payments tips inclusion agricultural labor exception domestic service exemption foreign government employees minister work youth newspaper delivery nonresident employee services compensation exemptions self-insured medical reimbursement limited liability company members nontaxable income fishing crew wages
Section § 13009.5
This section clarifies what is considered 'wages subject to personal income tax' for certain reports and statements. It includes: wages as defined by existing law, tips reported to employers, certain types of paid remuneration, and sick pay from third parties. Employers must report such third-party sick pay if informed by the payer, who must also report if they haven't informed the employer.
Additionally, parties are not required to register with the Employment Development Department or withhold taxes solely for reporting these wages, unless otherwise stipulated by law.
(a)CA Unemployment Insurance Code § 13009.5(a) For purposes of the report required by subdivision (a) of Section 1088 and the statement required by Section 13050, “wages subject to personal income tax” means all of the following:
(1)CA Unemployment Insurance Code § 13009.5(a)(1) Remuneration defined as wages by Section 13009, except that in the case of tips received by an employee in the course of his or her employment, the amounts shall include only those tips included in statements furnished to the employer, pursuant to Section 13055.
(2)CA Unemployment Insurance Code § 13009.5(a)(2) Remuneration described in subdivisions (a), (b), (f), and (l) of Section 13009, to the extent included in gross income.
(3)CA Unemployment Insurance Code § 13009.5(a)(3) Payments made by a third party for sick pay as specified in Section 931.5.
(A)CA Unemployment Insurance Code § 13009.5(a)(3)(A) Any employer who receives a report of wages from a third-party payer as provided for in subdivisions (a) and (b) of Section 931.5 shall report those wages to the department as required under paragraph (2) of subdivision (a) of Section 1088.
(B)CA Unemployment Insurance Code § 13009.5(a)(3)(B) Any third-party payer described in Section 931.5 who fails to report wages to an employer as provided for in that section shall report those wages to the department as required under paragraph (2) of subdivision (a) of Section 1088.
(b)Copy CA Unemployment Insurance Code § 13009.5(b)
(1)Copy CA Unemployment Insurance Code § 13009.5(b)(1) A person or entity shall not be required to register with the Employment Development Department solely for the purpose of reporting wages subject to personal income tax pursuant to Section 1088 unless that registration is otherwise required by this code.
(2)CA Unemployment Insurance Code § 13009.5(b)(2) A person or entity shall not be required to withhold any tax under Section 13020 for wages, as defined by this section, unless that person or entity is required to withhold tax for those wages as defined by Section 13009.
wages subject to personal income tax tips included in statements third-party sick pay reporting wages employee tips remuneration gross income sick pay reporting third-party payer tax withholding requirements Employment Development Department registration
Section § 13010
A "withholding agent" is anyone who has to take out and keep back tax as instructed by another legal section, specifically Section 13020.
“Withholding agent” means any person required to deduct and withhold any tax under the provisions of Section 13020.
withholding agent tax deduction tax withholding person required tax responsibilities withholding obligations Section 13020 individuals responsible tax code requirements federal and state taxes California tax law tax compliance mandatory tax retention income withholding financial obligation
Section § 13011
This law means that all the resources and properties, whether they are records, equipment, or land, that were used by the Franchise Tax Board (FTB) under certain responsibilities are now managed by a different department. This change is based on two specific sections of the law.
The department shall retain the possession and control of all records, papers, offices, equipment, supplies, moneys, funds, appropriations, land, and other property real or personal held for the benefit or use of the Franchise Tax Board in the performance of the duties, powers, purposes, responsibilities, and jurisdiction of the Franchise Tax Board that were previously delegated by Section 15702.1 of the Government Code and that are vested in the department by Section 13000.
Franchise Tax Board resources retention of control management of FTB assets department responsibilities property transfer Section 15702.1 Section 13000 FTB jurisdiction resource management FTB duties government property transfer asset control
Section § 13013
This section states that any regulations previously adopted by the Franchise Tax Board, which were taken over by the department, will continue to be valid and enforceable. They will remain in effect until the director decides to readopt, change, or cancel them.
All regulations heretofore adopted by the Franchise Tax Board pursuant to powers transferred to the department by this division and in effect immediately preceding the operative date of this division, shall remain in effect and shall be fully enforceable unless and until readopted, amended, or repealed by the director.
Franchise Tax Board regulations regulations enforcement powers transfer department authority existing regulations operative date readopt regulations amend regulations repeal regulations director discretion regulatory continuity law enforcement administrative authority legal transition tax regulations
Section § 13014
This section states that any interest payments which are not subject to tax under this division are not covered by it.
This division does not apply to the payment of interest obligations not taxable under this division.
interest obligations non-taxable interest tax exemption payment exclusions interest payment regulations non-applicable division tax-free interest interest tax rules unemployment insurance code financial regulations
Section § 13015
This law section lets the department demand information from people who have to pay taxes under this division. The idea is to help identify these individuals correctly.
The department is authorized to require such information with respect to persons subject to the taxes imposed by this division as is necessary or helpful in securing proper identification of such persons.
taxpayer identification tax information requirements department authority information demand taxpayer identification processes imposed taxes identity verification secure identification tax division necessary information helpful information tax compliance person subject to taxes proper identification information gathering
Section § 13016
This law says that if someone needs to enforce the rules of this division, they can ask for and must be given the name and address of the person receiving income from another party.
When necessary to make effective the provisions of this division, the name and address of the recipient of income shall be furnished upon demand of the person paying the income.
recipient identification income recipient enforcement of rules information disclosure name and address demand income payer requirement recipient details income disclosure income enforcement data provision requirement enforcement mechanism income recipient information legal disclosure requirement recipient address income provisions
Section § 13017
This law states that any changes related to how taxes are withheld will follow the procedures described in Section 18665 of the Revenue and Taxation Code, unless a law specifically says otherwise.
Unless otherwise specifically provided, the provisions of any law effecting changes in withholding under this division shall begin in the manner set forth by Section 18665 of the Revenue and Taxation Code.
tax withholding withholding changes Revenue and Taxation Code Section 18665 tax law changes tax procedures withholding procedures implementation of tax changes withholding implementation tax code section reference
Section § 13018
This section of the law says that any information collected under this division is only to be used for managing tax laws or other specific laws. If someone intentionally looks at or shares this information without permission, it is considered a misdemeanor (a type of crime). 'Inspection' means looking at any confidential information.
Additionally, if a taxpayer's confidential tax information is unlawfully accessed or disclosed and criminal charges are filed, the taxpayer must be informed of the incident.
(a)CA Unemployment Insurance Code § 13018(a) Except as otherwise provided by this division or other express provision of law, the information furnished or secured pursuant to this division shall be used solely for the purpose of administering the tax laws or other laws administered by the person or agency obtaining it. Any willful unauthorized inspection or unwarranted disclosure or use of the information by the person or agency, or the employees and officers thereof, is a misdemeanor. For purposes of this section, “inspection” means any examination of confidential information furnished or secured pursuant to this division.
(b)CA Unemployment Insurance Code § 13018(b) The department shall notify a taxpayer of any known incidents of willful unauthorized inspection or unwarranted disclosure or use of the taxpayer’s confidential tax records, but only if criminal charges have been filed for the willful unauthorized inspection or unwarranted disclosure.
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Section § 13019
This law extends the confidentiality protections typically enjoyed between an attorney and client to communications between a taxpayer and a federally authorized tax practitioner, like a CPA or tax lawyer, particularly for advice on state tax matters. However, these protections only apply in noncriminal tax disputes with the Employment Development Department, not in the promotion of tax shelters. The privilege doesn't cover communications about tax shelters or any proceedings regarding the discipline of a practitioner.
(a)Copy CA Unemployment Insurance Code § 13019(a)
(1)Copy CA Unemployment Insurance Code § 13019(a)(1) With respect to tax advice, the protections of confidentiality that apply to a communication between a client and an attorney, as set forth in Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of the Evidence Code, also shall apply to a communication between a taxpayer and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a client and an attorney.
(2)CA Unemployment Insurance Code § 13019(a)(2) Paragraph (1) may only be asserted in any noncriminal tax matter before the Employment Development Department.
(3)CA Unemployment Insurance Code § 13019(a)(3) For purposes of this section:
(A)CA Unemployment Insurance Code § 13019(a)(3)(A) “Federally authorized tax practitioner” means any individual who is authorized under federal law to practice before the Internal Revenue Service if the practice is subject to federal regulation under Section 330 of Title 31 of the United States Code, as provided by federal law as of January 1, 2000.
(B)CA Unemployment Insurance Code § 13019(a)(3)(B) “Tax advice” means advice given by an individual with respect to a state tax matter, which may include federal tax advice if it relates to the state tax matter. For purposes of this subparagraph, “federal tax advice” means advice given by an individual within the scope of his or her authority to practice before the federal Internal Revenue Service on noncriminal tax matters.
(C)CA Unemployment Insurance Code § 13019(a)(3)(C) “Tax shelter” means a partnership or other entity, any investment plan or arrangement, or any other plan or arrangement if a significant purpose of that partnership, entity, plan, or
arrangement is the avoidance or evasion of federal income tax.
(b)CA Unemployment Insurance Code § 13019(b) The privilege under subdivision (a) shall not apply to any written communication between a federally authorized tax practitioner and a director, shareholder, officer, or employee, agent, or representative of a corporation in connection with the promotion of the direct or indirect participation of the corporation in any tax shelter, or in any proceeding to revoke or otherwise discipline any license or right to practice by any governmental agency.
(c)CA Unemployment Insurance Code § 13019(c) This section shall be operative for communications made on or after the effective date of the act adding this section.
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