Collections - - CA Unemployment Insurance

Section § 13070

This section states that employers must pay the tax they are required to withhold from employees' wages, and they won’t be liable to others for making these payments. Additionally, any tax amount that an employer withholds is considered a special trust fund for California, meaning the money is held specifically for the state’s purposes.

(a) The employer shall be liable for the payment of the tax required to be deducted and withheld under Section 13020, and shall not be liable to any person for the amount of such payment.

(b) Whenever any employer or person has withheld any amount pursuant to this division, the amount so withheld shall be held to be a special fund in trust for the State of California.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13071

If an employer doesn't deduct or withhold taxes as required, but later the tax is paid or reported by the employee to the Franchise Tax Board, the employer doesn't have to pay that missing tax. However, the employer can still face penalties or extra charges for initially not withholding the tax.

If the employer, in violation of the provisions of this division, fails to deduct and withhold the tax under this division, and thereafter the tax against which the tax may be credited is paid or the taxpayer reports to the Franchise Tax Board the wages or gross income against which the tax would have been imposed, the tax so required to be deducted and withheld shall not be collected from the employer, but this section shall in no case relieve the employer from liability for any penalties or additions to the tax otherwise applicable with respect to the failure to deduct and withhold.

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(Amended by Stats. 1993, Ch. 402, Sec. 8. Effective January 1, 1994.)

Section § 13072

This law allows the department to instruct any state-related entity or employer, including universities, cities, or political bodies, to withhold and forward funds from a taxpayer or an employer who hasn't paid required taxes, interest, or penalties. If these entities hold any property or credits belonging to the person or business that owes money, they're required to use these assets to cover the owed amounts and send them to the department as directed.

The department may by notice, served personally or by first-class mail, require any employer, person, officer or department of the state, political subdivision or agency of the state, including the Regents of the University of California, a city organized under a freeholders’ charter, or a political body not a subdivision or agency of the state, having in their possession, or under their control, any credits or other personal property or other things of value, belonging to a taxpayer or to an employer or person who has failed to withhold and transmit amounts due pursuant to Section 13070 or 13073 to withhold, from such credits or other personal property or other things of value, the amount of any tax, interest, or penalties due from the taxpayer or the amount of any liability incurred by such employer or person for failure to withhold and transmit amounts due from a taxpayer and to transmit the amount withheld to the department at such times as it may designate.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13073

If an employer or person doesn't withhold and send the correct amount of taxes from a taxpayer after getting a notice, they are responsible for paying those taxes.

Any employer or person failing to withhold the amount due from any taxpayer and to transmit the same to the department after service of a notice pursuant to Section 13072 is liable for such amounts.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13074

This section means that employers or people who must hold back (withhold) and send (transmit) money as stated by the law need to do so without taking it to court. Once the money is sent to the department as required, the employer or person isn’t responsible to the person it was taken from, unless the withholder gets the money back.

Any employer or person required to withhold and transmit any amount pursuant to this division shall comply with the requirement without resort to any legal or equitable action in a court of law or equity. Any employer or person paying to the department any amount required by it to be withheld is not liable therefor to the person from whom withheld unless the amount withheld is refunded to the withholding agent.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13075

This law says that if there is a notice to withhold payment from the state, it must be served to the state agency that owes the payment before that agency submits the claim for payment to the State Controller. This is required unless another rule specifically exempts the situation from these requirements.

Whenever, under any provision of this division, service is authorized upon the state of any notice to withhold, unless expressly exempted from the provisions of this section, such service to be effective must, in addition to any other requirements, be made on the state agency owing the obligation prior to the time such agency presents the claim for payment thereof to the State Controller.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13076

This law section explains that if the employer is a government entity, including the United States, California, or any of its political subdivisions (like cities or agencies), they can designate an officer or employee to handle the return of taxes deducted from wages. Basically, someone within the government entity has the authority to manage these financial transactions.

If the employer is the United States, or this state, or any political subdivision thereof, including the Regents of the University of California, a city organized under a freeholders’ charter, or any agency or instrumentality of any one or more of the foregoing, the return of the amount deducted and withheld upon any wages may be made by any officer or employee of the United States, or of such state, city organized under a freeholders’ charter, or political subdivision, or of such agency or instrumentality, as the case may be, having control of the payment of such wages, or appropriately designated for that purpose.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)

Section § 13077

This law explains liability when someone other than the employer pays wages or provides money specifically for wages. If a lender or surety pays employees directly, they're responsible for taxes that should've been withheld from those wages. If they provide money to an employer knowing the employer can't pay the taxes, they're also liable for the unpaid taxes but only up to 25% of the money they supplied. Payments made to the state by these third parties count toward the employer's tax liability.

(a) For purposes of Sections 13020 and 13070, if a lender, surety, or other person, who is not an employer under such sections with respect to an employee or group of employees, pays wages directly to such an employee or group of employees, employed by one or more employers, or to an agent on behalf of such employee or employees, such lender, surety, or other person shall be liable in his or her own person and estate to the State of California in a sum equal to the taxes (together with interest) required to be deducted and withheld from such wages by such employer.

(b) If a lender, surety, or other person supplies funds to or for the account of an employer for the specific purpose of paying wages of the employees of such employer, with actual notice or knowledge that such employer does not intend to or will not be able to make timely payment or deposit of the amounts of tax required by this part to be deducted and withheld by such employer from such wages, such lender, surety, or other person shall be liable in his or her own person and estate to the State of California in a sum equal to the taxes (together with interest) which are not paid over to the State of California by such employer with respect to such wages. However, the liability of such lender, surety, or other person shall be limited to an amount equal to 25 percent of the amount so supplied to or for the account of such employer for such purpose.

(c) Any amounts paid to the State of California pursuant to this section shall be credited against the liability of the employer.

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(Added by Stats. 1980, Ch. 1007, Sec. 64. Operative July 1, 1981, by Sec. 67 of Ch. 1007.)