Chapter 4Reports, Returns, and Statements

Section § 13050

Explanation

If you're an employer in California and you need to withhold taxes from an employee's wages, you must provide that employee with a written statement by January 31st of the following year, or sooner if they stop working for you during the year. This statement should include your name, the employee's name and social security number, total wages, total tax withheld, worker contributions, and deferred compensation. Similarly, if you handle third-party sick pay, you must give relevant details to the employee's main employer by January 15th, who must then pass this information on to the employee by January 31st. The Franchise Tax Board can access these records.

(a)CA Unemployment Insurance Code § 13050(a) Every employer or person required to deduct and withhold from an employee a tax under Section 986, 3260, or 13020, or who would have been required to deduct and withhold a tax under Section 13020 (determined without regard to Section 13025) if the employee had claimed no more than one withholding exemption, shall furnish to each employee in respect of the remuneration paid by the person to the employee during the calendar year, on or before January 31 of the succeeding year, or, if his or her employment is terminated before the close of the calendar year, on the day on which the last payment of remuneration is made, a written statement showing all of the following:
(1)CA Unemployment Insurance Code § 13050(a)(1) The name of the person.
(2)CA Unemployment Insurance Code § 13050(a)(2) The name of the employee, and his or her social security or identifying number if wages have been paid.
(3)CA Unemployment Insurance Code § 13050(a)(3) The total amount of wages subject to personal income tax, as defined by Section 13009.5.
(4)CA Unemployment Insurance Code § 13050(a)(4) The total amount deducted and withheld as tax under Section 13020.
(5)CA Unemployment Insurance Code § 13050(a)(5) The total amount of worker contributions paid by the employee pursuant to Section 986.
(6)CA Unemployment Insurance Code § 13050(a)(6) The total amount of worker contributions paid by the employee pursuant to Section 3260.
(7)CA Unemployment Insurance Code § 13050(a)(7) The total amount of elective deferrals (within the meaning of Section 402(g)(3) of the Internal Revenue Code) and compensation deferred pursuant to Section 457 of the Internal Revenue Code.
(b)CA Unemployment Insurance Code § 13050(b) The statement required to be furnished pursuant to this section in respect of any remuneration shall be furnished at other times, shall contain other information, and shall be in a form, as the department may by authorized regulations prescribe.
(c)CA Unemployment Insurance Code § 13050(c) If, during any calendar year, any person makes a payment of third-party sick pay to an employee, that person shall, on or before January 15 of the succeeding year, furnish a written statement to the employer in respect of whom the payment was made showing all of the following:
(1)CA Unemployment Insurance Code § 13050(c)(1) The name and, if there is withholding under this division, the social security number of that employee.
(2)CA Unemployment Insurance Code § 13050(c)(2) The total amount of the third-party sick pay paid to that employee during the calendar year.
(3)CA Unemployment Insurance Code § 13050(c)(3) The total amount, if any, deducted and withheld from that sick pay under this division. For purposes of the preceding sentence, the term “third-party sick pay” means any sick pay, as defined in subdivision (b) of Section 13028.6, which does not constitute wages for purposes of this division, determined without regard to subdivision (a) of Section 13028.6.
(A)CA Unemployment Insurance Code § 13050(c)(3)(A) For purposes of Chapter 10 (commencing with Section 2101) of Part 1 of Division 1, the statements required to be furnished by this subdivision shall be treated as statements required under this section to be furnished to employees.
(B)CA Unemployment Insurance Code § 13050(c)(3)(B) Every employer who receives a statement under this subdivision with respect to sick pay paid to any employee during any calendar year shall, on or before January 31 of the succeeding year, furnish a written statement to that employee showing all of the information shown on the statement furnished under this subdivision.
(d)CA Unemployment Insurance Code § 13050(d) The Franchise Tax Board shall be allowed access to the information filed with the department pursuant to this section.
employer responsibility tax withholding employee wages withholding statement third-party sick pay Franchise Tax Board access withholding exemption deferred compensation worker contributions wage statement employee identification tax reporting deadlines third-party pay documentation employment termination reporting personal income tax reporting
(Amended by Stats. 2010, Ch. 719, Sec. 63. (SB 856) Effective October 19, 2010.)

Section § 13052

Explanation

This law states that employers or individuals who must provide a paycheck statement to employees will face a $50 penalty each time they either deliver false information or fail to provide the statement as required by law. This penalty applies unless there's a reasonable excuse for the failure. The penalty is collected like a tax.

Any person or employer required under Section 13050 to furnish a statement to an employee who furnishes a false or fraudulent statement, or who fails to furnish a statement in the manner, at the time, and showing the information required under Section 13050, or regulations prescribed thereunder, shall for each such failure, unless due to reasonable cause, pay a penalty of fifty dollars ($50). The penalty shall be assessed and collected in the same manner as the tax.
paycheck statement false information employee statement penalty reasonable cause tax collection failure to furnish statement statement requirements fraudulent statement employer obligations
(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13052.5

Explanation

This law section outlines penalties for not reporting payments for personal services as required by California and federal regulations. If someone fails to report these payments by the due date, they can be charged a penalty. The penalty amount is calculated by multiplying the unreported payment by the highest tax rate specified in California's tax code. This penalty will replace another specific penalty if it overlaps. Additionally, this section allows a penalty to be in place of or in addition to other penalties for not giving withholding statements to employees.

(a)CA Unemployment Insurance Code § 13052.5(a) In addition to the penalty imposed by Section 19183 of the Revenue and Taxation Code (relating to failure to file information returns), if any person, or entity fails to report amounts paid as remuneration for personal services as required under Section 13050 of this code or Section 6041A of the Internal Revenue Code on the date prescribed thereof (determined with regard to any extension of time for filing), that person or entity may be liable for a penalty determined under subdivision (b).
(b)CA Unemployment Insurance Code § 13052.5(b) For purposes of subdivision (a), the amount determined under this subdivision is the maximum rate under Section 17041 of the Revenue and Taxation Code multiplied by the unreported amounts paid as remuneration for personal services.
(c)CA Unemployment Insurance Code § 13052.5(c) The penalty imposed by subdivision (a) shall be assessed against that person or entity required to file a return under Section 13050 of this code or Section 6041A of the Internal Revenue Code.
(d)CA Unemployment Insurance Code § 13052.5(d) The penalty imposed under this section shall be in lieu of the penalty imposed under Section 19175 of the Revenue and Taxation Code. In the event that a penalty is imposed under both this section and Section 19175 of the Revenue and Taxation Code, only the penalty imposed under this section shall apply.
(e)CA Unemployment Insurance Code § 13052.5(e) The penalty imposed by this section may be assessed in lieu of, or in addition to, the penalty imposed by Section 13052 with respect to the failure to furnish a withholding statement to an employee.
penalty for unreported payments remuneration reporting personal services compensation unreported income penalty filing deadline California tax rate non-compliance consequences withholding statement requirement penalty calculation personal services remuneration Civil penalties tax filing extension Section 13050 compliance Section 6041A
(Amended by Stats. 2017, Ch. 117, Sec. 11. (AB 1695) Effective January 1, 2018.)

Section § 13055

Explanation

If you're an employee who earns tips as part of your job, you need to report all those tips to your boss in writing by the 10th of the next month. You have to follow the rules and formats set by the department for how and when to provide these tip reports.

Every employee who, in the course of his or her employment by an employer, receives in any calendar month tips which are wages shall report all such tips in one or more written statements furnished to his or her employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such authorized regulations, at such other times before such 10th day, and in such form and manner as may be prescribed by the department.
tip reporting employee tips monthly tip filing tip income calendar month written statements reporting deadlines employment regulations tip wages department regulations tip compliance tip reporting requirements employer reporting tip statement form employment income reporting
(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13056

Explanation

This law section requires people or employers to include identifying numbers prescribed by the department when filing returns, reports, or other documents. If you need to file a document about yourself, you must have your identifier. If it involves someone else, you have to include their number, which they should provide to you upon request. An important exception is when dealing with estates or trusts; in this case, the documents filed must include identifying numbers for all beneficiaries. Lastly, the department can ask for information necessary to assign these identifying numbers.

(a)CA Unemployment Insurance Code § 13056(a) When required by authorized regulations prescribed by the department:
(1)CA Unemployment Insurance Code § 13056(a)(1) Any person or employer required under the authority of this division to make a return, report, statement, or other document shall include in the return, report, statement, or other document the identifying number as may be prescribed for securing proper identification of the person.
(2)CA Unemployment Insurance Code § 13056(a)(2) Any person with respect to whom a return, report, statement, or other document is required under the authority of this division to be made by another person shall furnish to the other person the identifying number as may be prescribed for securing his or her proper identification.
(3)CA Unemployment Insurance Code § 13056(a)(3) Any person or employer required under the authority of this division to make a return, report, statement, or other document with respect to another person shall request from the other person, and shall include in the return, report, statement, or other document, the identifying number as may be prescribed for securing proper identification of the other person.
(b)Copy CA Unemployment Insurance Code § 13056(b)
(1)Copy CA Unemployment Insurance Code § 13056(b)(1) Except as provided in paragraph (2), a return or report of any person with respect to his or her liability for tax, or any statement or other document in support thereof, shall not be considered for purposes of paragraphs (2) and (3) of subdivision (a) as a return, report, statement, or other document with respect to another person.
(2)CA Unemployment Insurance Code § 13056(b)(2) For purposes of paragraphs (2) and (3) of subdivision (a), a return or report of an estate or trust with respect to its liability for tax, and any statement or other document in support thereof, shall be considered as a return, report, statement, or other document with respect to each beneficiary of the estate or trust.
(c)CA Unemployment Insurance Code § 13056(c) For purposes of this section, the department is authorized to require the information that may be necessary to assign an identifying number to any person.
identifying number tax liability return filing employer requirements document identification trust beneficiaries estate reporting document support information requirement number assignment beneficiary identification reporting obligations authority regulations recipient obligation prescribed identifiers
(Amended by Stats. 1994, Ch. 1049, Sec. 31. Effective January 1, 1995.)

Section § 13057

Explanation

This law states that if someone is required to provide an identifying number (like a taxpayer ID) on certain documents but fails to do so without a good reason, they will have to pay a $5 fine for each time they fail to provide it. This applies to several situations: not including their ID number on any return, report, or statement; not providing their ID number to someone else; not including someone else's ID number on required documents; or not providing an agency's taxpayer identification number. The penalty is collected the same way as a tax would be.

(a)CA Unemployment Insurance Code § 13057(a) If any person who is required by regulations prescribed under Section 13056 to provide a required identifying number fails without good cause to comply with that requirement at the time prescribed by the regulations, the person shall pay a penalty of five dollars ($5) for each failure:
(1)CA Unemployment Insurance Code § 13057(a)(1) To include his or her identifying number in any return, report, statement, or other document.
(2)CA Unemployment Insurance Code § 13057(a)(2) To furnish his or her identifying number to another person.
(3)CA Unemployment Insurance Code § 13057(a)(3) To include in any return, report, statement, or other document made with respect to another person the identifying number of the other person.
(4)CA Unemployment Insurance Code § 13057(a)(4) To furnish any other agency’s taxpayer identification number.
(b)CA Unemployment Insurance Code § 13057(b) The penalty under this section shall be assessed and collected in the same manner as the tax.
identifying number taxpayer identification penalty for noncompliance failing to provide ID number document submission requirements penalty collection regulatory compliance identification number requirement tax return ID furnishing ID number good cause exception non-filing penalty document compliance tax document requirement
(Amended by Stats. 1994, Ch. 1049, Sec. 32. Effective January 1, 1995.)

Section § 13058

Explanation

This law states that any documents required by the department, like reports or statements, must include a written declaration that they're made under penalty of perjury. These documents should follow the specific format prescribed by the department and must be filed with it. The department will prepare and distribute the necessary forms, but not having the form doesn't excuse anyone from filing the required documents.

Except as otherwise provided by the department, any return, report, statement, or other document required to be made under any provision of this division or authorized regulations shall contain, or be verified by, a written declaration that it is made under the penalty of perjury. The returns, reports, and all other returns, reports, statements, or other documents or copies thereof required by this division, shall be in the form as the department may from time to time prescribe, and shall be filed with the department. The department shall prepare blank forms for the returns, reports, declarations, statements, or other documents and shall distribute them throughout the state and furnish them upon application. Failure to receive or secure the form does not relieve any employer or person from making any return, report, statement, or other document required.
penalty of perjury document verification return forms reporting requirements form distribution department-prescribed format document filing employer obligation statement declaration failure to secure form report compliance document submission required documents perjury declaration form application
(Amended by Stats. 1994, Ch. 1049, Sec. 33. Effective January 1, 1995.)

Section § 13059

Explanation

If the Governor declares a state of emergency, employers affected by it can get more time to file necessary paperwork and pay taxes. This extension is at the discretion of the director and is only for those who can't meet deadlines because of the emergency conditions.

If the Governor declares a state of emergency, the director may extend the time requirements for filing returns, reports, and statements required by this chapter. The extension granted by the director pursuant to this section shall only apply to employers prevented by the conditions giving rise to the state of emergency from timely filing their returns, reports, and statements of wages or timely payment of the taxes due.
state of emergency extension of filing deadlines employer tax filings tax payment extension emergency conditions Governor declaration timely filing director discretion wage reports return submission delay filing extensions employer compliance emergency responses reporting requirements tax due dates
(Added by Stats. 1993, Ch. 402, Sec. 7. Effective January 1, 1994.)