Withholding Tax on WagesViolations

Section § 13101

Explanation

If someone makes a false declaration that reduces tax withholdings without having a reasonable basis, they'll be fined $500. However, the fine can be waived if the person's total taxes for the year, minus certain credits and estimated payments, are less than or equal to the taxes owed. Importantly, regular appeal processes for this fine don't apply, and this rule is for actions after December 31, 1981.

(a)CA Unemployment Insurance Code § 13101(a) In addition to any criminal penalty provided by law, if any individual makes a statement under Section 13040, 13041, or 13042 which results in a decrease in the amounts deducted and withheld under this division, and as of the time the statement was made, there was no reasonable basis for the statement, the individual shall pay a penalty of five hundred dollars ($500) for the statement.
(b)CA Unemployment Insurance Code § 13101(b) The department may waive, in whole or in part, the penalty imposed under subdivision (a) if the taxes imposed with respect to the individual under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code for the taxable year are equal to or less than the sum of both of the following:
(1)CA Unemployment Insurance Code § 13101(b)(1) The credits against those taxes allowed by Sections 17052.1 through 17053.7 and Section 19002.
(2)CA Unemployment Insurance Code § 13101(b)(2) The payments of estimated tax which are considered payments on account of those taxes.
(c)CA Unemployment Insurance Code § 13101(c) Article 11 (commencing with Section 1221) of Chapter 4 of Part 1, relating to administrative appellate review, shall not apply to the assessment or collection of any penalty imposed by subdivision (a).
(d)CA Unemployment Insurance Code § 13101(d) This section shall apply to acts and failures to act after December 31, 1981.
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