California Unemployment Insurance Code 12100 - 13101

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13000.  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.



13001.  The definitions set forth in Sections 126, 127, 129, 133,
134, and 144 shall apply to this division.



13002.  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) Sections 301, 305, 306, 310, 311, 312, 317, and 318, relating
to general administrative powers of the department.
   (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) Sections 1110.6, 1111, 1111.5, 1112, 1113, 1113.1, 1114, 1115,
1116, and 1117, relating to the making of returns or the payment of
reported contributions.
   (d) Article 8 (commencing with Section 1126) of Chapter 4 of Part
1 of Division 1, relating to assessments.
   (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) Article 10 (commencing with Section 1206) of Chapter 4 of Part
1 of Division 1, relating to notice.
   (g) Article 11 (commencing with Section 1221) of Chapter 4 of Part
1 of Division 1, relating to administrative appellate review.
   (h) Article 12 (commencing with Section 1241) of Chapter 4 of Part
1 of Division 1, relating to judicial review.
   (i) Chapter 7 (commencing with Section 1701) of Part 1 of Division
1, relating to collections.
   (j) Chapter 10 (commencing with Section 2101) of Part 1 of
Division 1, relating to violations.



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) "Corporation" as defined by Section 17009.
   (2) "Fiduciary" as defined by Section 17006.
   (3) "Fiscal year" as defined by Section 17011.
   (4) "Foreign country" as defined by Section 17019.
   (5) "Franchise Tax Board" as defined by Section 17003.
   (6) "Husband" and "wife" as defined by Section 17021.
   (7) "Individual" as defined by Section 17005.
   (8) "Military or naval forces" as defined by Section 17022.
   (9) "Nonresident" as defined by Section 17015.
   (10) "Partnership" as defined by Section 17008.
   (11) "Person" as defined by Section 17007.
   (12) "Resident" as defined by Sections 17014 and 17016.
   (13) "State" as defined by Section 17018.
   (14) "Taxable year" as defined by Section 17010.
   (15) "Taxpayer" as defined by Section 17004.
   (16) "Trade or business" as defined by Section 17020.
   (17) "United States" as defined by Section 17017.
   (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) Trade or business expense (Article 6 (commencing with Section
17201) of Chapter 3 of Part 10).
   (2) Deductions for retirement savings (Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10).
   (3) Distributions of property by a corporation to a shareholder
(Chapter 4 (commencing with Section 17321) of Part 10).
   (4) Deferred compensation (Chapter 5 (commencing with Section
17501) of Part 10).
   (5) Partners and partnerships (Chapter 10 (commencing with Section
17851) of Part 10).
   (6) Gross income of nonresident taxpayers Chapter 11 (commencing
with Section 17951) of Part 10).
   (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) 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.


13004.  "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.



13004.1.  "Employee" does not include any individual if all of the
following conditions exist:
   (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) 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) 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.


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) 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.



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) 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.



13005.7.  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.



13006.  "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.



13007.  "Miscellaneous payroll period" means a payroll period other
than a daily, weekly, biweekly, semimonthly, monthly, quarterly,
semiannual, or annual payroll period.



13008.  "Payroll period" means a period for which a payment of wages
is ordinarily made to the employee by his or her employer.



13009.  "Wages" means all remuneration, other than fees paid to a
public official, for services performed by an employee for his or her
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 his or her 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) For agricultural labor, as defined in subdivision (g) of
Section 3121 of the Internal Revenue Code.
   (b) For domestic service in a private home, local college club, or
local chapter of a college fraternity or sorority.
   (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) 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) 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) For services by a citizen or resident of the United States for
a foreign government or an international organization.
   (e) For services performed by a nonresident alien individual as
designated by regulations prescribed by the department.
   (f) For services performed by a duly ordained, commissioned, or
licensed minister of a church in the exercise of his or her ministry
or by a member of a religious order in the exercise of duties
required by the order.
   (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) 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 him or her at a fixed price, his or her compensation being based
on the retention of the excess of the price over the amount at which
the newspapers or magazines are charged to him or her whether or not
he or she 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) For services not in the course of the employer's trade or
business, to the extent paid in any medium other than cash.
   (i) To, or on behalf of, an employee or his or her beneficiary
under any of the following situations:
   (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) 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) 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) 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) Under a cafeteria plan (within the meaning of Section 125 of
the Internal Revenue Code).
   (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) Pursuant to any provision of law other than Section 5(c) or 6
(l) of the Peace Corps Act, for service performed as a volunteer or
volunteer leader within the meaning of that act.
   (l) In the form of group-term life insurance on the life of an
employee.
   (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) (1) As tips in any medium other than cash.
   (2) As cash tips to an employee in any calendar month in the
course of his or her employment by an employer, unless the amount of
the cash tips is twenty dollars ($20) or more.
   (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) The individual does not receive any cash remuneration, other
than as provided in paragraph (2).
   (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) 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) 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) To, or on behalf of, an employee to the extent not includable
in gross income pursuant to Section 13006.
   (r) For services to which Section 633 applies.



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) 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) Remuneration described in subdivisions (a), (b), (f), and (l)
of Section 13009, to the extent included in gross income.
   (3) Payments made by a third party for sick pay as specified in
Section 931.5.
   (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) 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) (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) 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.


13010.  "Withholding agent" means any person required to deduct and
withhold any tax under the provisions of Section 13020.



13011.  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.



13013.  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.




13014.  This division does not apply to the payment of interest
obligations not taxable under this division.



13015.  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.


13016.  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.



13017.  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.


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) 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.



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) Paragraph (1) may only be asserted in any noncriminal tax
matter before the Employment Development Department.
   (3) For purposes of this section:
   (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) "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) "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) 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) This section shall be operative for communications made on or
after the effective date of the act adding this section.

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13020.  (a) (1) Every employer who pays wages to a resident employee
for services performed either within or without this state, or to a
nonresident employee for services performed in this state, shall
deduct and withhold from those wages, except as provided in
subdivision (c) and Sections 13025 and 13026, for each payroll
period, a tax computed in that manner as to produce, so far as
practicable, with due regard to the credits for personal exemptions
allowable under Section 17054 of the Revenue and Taxation Code, a sum
which is substantially equivalent to the amount of tax reasonably
estimated to be due under Part 10 (commencing with Section 17001) of
Division 2 of the Revenue and Taxation Code resulting from the
inclusion in the gross income of the employee of the wages which were
subject to withholding. The method of determining the amount to be
withheld shall be prescribed by the Franchise Tax Board pursuant to
Section 18663 of the Revenue and Taxation Code.
   (2) For each payroll period ending on or after November 1, 2009,
the sum shall comport with the changes made to Section 18663 of the
Revenue and Taxation Code, by the act adding this paragraph.
   (b) The department upon request may permit the use of accounting
machines to calculate the proper amount to be deducted and withheld
from wages, if the calculation produces an amount substantially
equivalent to the amount of tax required to be withheld under
subdivision (a).
   (c) Withholding shall not be required by this section with respect
to wages, salaries, fees, or other compensation paid by a
corporation for services performed in California for that corporation
to a nonresident corporate director for director services, including
attendance at a board of directors' meeting.




13021.  (a) Every employer required to withhold any tax under
Section 13020 shall for each calendar quarter, whether or not wages
or payments are paid in the quarter, file a withholding report, a
quarterly return, as prescribed in subdivision (a) of Section 1088,
and a report of wages in a form prescribed by the department, and pay
over the taxes so required to be withheld. The report of wages shall
include individual amounts required to be withheld under Section
13020 or withheld under Section 13028. Except as provided in
subdivisions (c) and (d), the employer shall file a withholding
report, a quarterly return, as prescribed in subdivision (a) of
Section 1088, and a report of wages, and remit the total amount of
income taxes withheld during the calendar quarter on or before the
last day of the month following the close of the calendar quarter.
   (b) Every employer electing to file a single annual return under
subdivision (d) of Section 1110 shall report and pay any taxes
withheld under Section 13020 on an annual basis within the time
specified in subdivision (d) of Section 1110.
   (c) (1) Effective January 1, 1995, whenever an employer is
required, for federal income tax purposes, to remit the total amount
of withheld federal income tax in accordance with Section 6302 of the
Internal Revenue Code and regulations thereunder, and the
accumulated amount of state income tax withheld is more than five
hundred dollars ($500), the employer shall remit the total amount of
income tax withheld for state income tax purposes within the number
of banking days as specified for withheld federal income taxes by
Section 6302 of the Internal Revenue Code, and regulations
thereunder.
   (2) Effective January 1, 1996, the five hundred dollar ($500)
amount referred to in paragraph (1) shall be adjusted annually as
follows, based on the annual average rate of interest earned on the
Pooled Money Investment Fund as of June 30 in the prior fiscal year:

  Average Rate of Interest
  Greater than or equal to 9 percent:        $ 75
  Less than 9 percent, but greater than
  or equal                                    250
  to
  7 percent:
  Less than 7 percent, but greater than
  or equal                                    400
  to
  4 percent:
  Less than 4 percent:                        500

   (d) (1) Notwithstanding subdivisions (a) and (c), for calendar
years beginning prior to January 1, 1995, if in the 12-month period
ending June 30 of the prior year the cumulative average payment made
pursuant to this division or Section 1110, for eight-month periods,
as defined under Section 6302 of the Internal Revenue Code and
regulations thereunder, was fifty thousand dollars ($50,000) or more,
the employer shall remit the total amount of income tax withheld
within three banking days following the close of each eight-month
period, as defined by Section 6302 of the Internal Revenue Code and
regulations thereunder. For purposes of this subdivision, payment
shall be made by electronic funds transfer in accordance with Section
13021.5, for one calendar year beginning on January 1. Payment is
deemed complete on the date the electronic funds transfer is
initiated if settlement to the state's demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state's demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed complete on the date settlement occurs. The
department shall, on or before October 31 of the prior year, notify
all employers required to make payment by electronic funds transfer
of these requirements.
   (2) Notwithstanding subdivisions (a) and (c), for calendar years
beginning on or after January 1, 1995, if in the 12-month period
ending June 30 of the prior year, the cumulative average payment made
pursuant to this division or Section 1110 for any deposit periods,
as defined under Section 6302 of the Internal Revenue Code and
regulations thereunder, was twenty thousand dollars ($20,000) or
more, the employer shall remit the total amount of income tax
withheld within the number of banking days as specified for federal
income taxes by Section 6302 of the Internal Revenue Code and
regulations thereunder. For purposes of this subdivision, payment
shall be made by electronic funds transfer in accordance with Section
13021.5, for one calendar year beginning on January 1. Payment is
deemed complete on the date the electronic funds transfer is
initiated if settlement to the state's demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state's demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed complete on the date settlement occurs. The
department shall, on or before October 31 of the prior year, notify
all employers required by this paragraph to make payments by
electronic funds transfer of these requirements.
   (3) Notwithstanding paragraph (2), effective January 1, 1995,
electronic funds transfer payments that are subject to the one-day
deposit rule, as defined by Section 6302 of the Internal Revenue Code
and regulations thereunder, shall be deemed timely if the payment
settles to the state's demand account within three banking days after
the date the employer meets the threshold for the one-day deposit
rule.
   (4) Any taxpayer required to remit payments pursuant to paragraphs
(1) and (2) may request from the department a waiver of those
requirements. The department may grant a waiver only if it determines
that the particular amounts paid in excess of fifty thousand dollars
($50,000) or twenty thousand dollars ($20,000), as stated in
paragraphs (1) and (2), respectively, were the result of an
unprecedented occurrence for that employer, and were not
representative of the employer's cumulative average payment in prior
years.
   (5) Any state agency required to remit payments pursuant to
paragraphs (1) and (2) may request a waiver of those requirements
from the department. The department may grant a waiver if it
determines that there will not be a negative impact on the interest
earnings of the General Fund. If there is a negative impact to the
General Fund, the department may grant a waiver if the requesting
state agency follows procedures designated by the department to
mitigate the impact to the General Fund.
   (e) Any employer not required to make payment pursuant to
subdivision (d) of this section may elect to make payment by
electronic funds transfer in accordance with Section 13021.5 under
the following conditions:
   (1) The election shall be made in a form, and shall contain
information, as prescribed by the director, and shall be subject to
approval by the department.
   (2) If approved, the election shall be effective on the date
specified in the notification to the employer of approval.
   (3) The election shall be operative from the date specified in the
notification of approval, and shall continue in effect until
terminated by the employer or the department.
   (4) Funds remitted by electronic funds transfer pursuant to this
subdivision shall be deemed complete in accordance with subdivision
(d) or as deemed appropriate by the director to encourage use of this
payment method.
   (f) Notwithstanding Section 1112, no interest or penalties shall
be assessed against any employer who remits at least 95 percent of
the amount required by subdivision (c) or (d) if the failure to remit
the full amount is not willful and any remaining amount due is paid
with the next payment. The director may allow any employer to submit
the amounts due from multiple locations upon a showing that those
submissions are necessary to comply with subdivision (c) or (d).
   (g) The department may, if it believes that action is necessary,
require any employer to make the report or return required by this
section and pay to it the tax deducted and withheld at any time, or
from time to time but no less frequently than provided for in
subdivision (a).
   (h) Any employer required to withhold any tax and who is not
required to make payment under subdivision (c) shall remit the total
amount of income tax withheld during each month of each calendar
quarter, on or before the 15th day of the subsequent month if the
income tax withheld for any of the three months or, cumulatively for
two or more months, is three hundred fifty dollars ($350) or more.
   (i) For purposes of subdivisions (a), (c), and (h), payment is
deemed complete when it is placed in a properly addressed envelope,
bearing the correct postage, and it is deposited in the United States
mail.
   (j) (1) In addition to the withholding report, quarterly return,
and report of wages described in subdivision (a), each employer shall
file with the director an annual reconciliation return showing the
amount required to be withheld under Section 13020, and any other
information the director shall prescribe. This annual reconciliation
return shall be due on the first day of January following the close
of the prior calendar year and shall become delinquent if not filed
on or before the last day of that month.
   (2) The requirement to file the annual reconciliation return for
the prior calendar year under this subdivision shall not apply to the
2012 calendar year and thereafter.
   (k) The requirement in subdivision (a) to file a quarterly return
shall begin with the first calendar quarter of the 2011 calendar
year.


13021.5.  (a) "Electronic funds transfer" means any transfer of
funds, other than a transaction originated by check, draft, or
similar paper instrument, that is initiated through an electronic
terminal, telephonic instrument, or computer or magnetic tape, so as
to order, instruct, or authorize a financial institution to debit or
credit an account. Electronic funds transfers shall be accomplished
by an automated clearinghouse debit, an automated clearinghouse
credit, Fedwire, or by other specific electronic funds transfer
methods approved in advance by the department.
   (b) "Automated clearinghouse" means any federal reserve bank, or
an organization established in agreement with the National Automated
Clearing House Association, that operates as a clearinghouse for
transmitting or receiving entries between banks and/or bank accounts
and which authorizes an electronic transfer of funds between those
banks or bank accounts.
   (c) "Automated clearinghouse debit" means a transaction in which
the state, through its designated depository bank, originates an
automated clearinghouse transaction debiting the employer's bank
account and crediting the state's bank account for the amount of tax.
Banking costs incurred for the automated clearinghouse debit
transaction shall be paid by the state.
   (d) "Automated clearinghouse credit" means an automated
clearinghouse transaction in which the employer through its own bank,
originates an entry crediting the state's bank account and debiting
its own bank account. Banking costs incurred for the automated
clearinghouse credit transaction charged to the employer and to the
state shall be paid by the employer.
   (e) "Fedwire" means any transaction originated by the employer and
utilizing the national electronic payment system to transfer funds
through the federal reserve banks, pursuant to which the employer
debits its own bank account and credits the state's bank account.
Electronic funds transfer payments may be made by Fedwire only if
prior approval is obtained from the department and payment cannot,
for good cause, be made pursuant to subdivision (a). Banking costs
incurred for the Fedwire transaction charged to the employer and to
the state shall be paid by the employer.
   (f) "Banking day" means any day other than a Saturday, Sunday, or
banking holiday as recognized by the Internal Revenue Service.
   (g) "Settlement date" means the date on which an exchange of funds
with respect to an entry is reflected on the books of the Federal
Reserve Bank.
   (h) For the purposes of Section 13021, the "cumulative average
payment" means the cumulative dollar amount of deposits divided by
the number of payments submitted during a given period. For the
purposes of this section, the "cumulative average payment" may also
be defined as a single annual deposit, when only one payment is made
during the 12-month period ending June 30.



13022.  In determining the amount to be deducted and withheld under
Section 13020, the wages may, at the election of the employer, be
computed to the nearest dollar.



13023.  The department may, by regulation, permit employers to
estimate the wages which will be paid to any employee in any quarter
of the calendar year, to determine the amount to be deducted and
withheld upon each payment of wages to such employee during such
quarter as if the appropriate average of the wages so estimated
constituted the actual wages paid, and to deduct and withhold upon
any payment of wages to such employee, during such quarter such
amount as may be necessary to adjust the amount actually deducted and
withheld upon the wages of such employee during such quarter to the
amount that would be required to be deducted and withheld during such
quarter if the payroll period of the employee were quarterly.




13024.  The department may provide by authorized regulation, under
such conditions and to such extent as it deems proper, for
withholding in addition to that otherwise required under Section
13020 in cases in which the employer and employee agree to such
additional withholding. Such additional withholding shall for all
purposes be considered a tax required to be deducted and withheld
under this division.



13025.  In the case of remuneration paid in any medium other than
cash for services performed by an individual as a retail salesperson
for a person where the service performed by such individual for such
person is ordinarily performed for remuneration solely by way of cash
commission an employer shall not be required to deduct or withhold
any tax under this division with respect to such remuneration, if
such employer files with the department such information with respect
to such remuneration as the department may prescribe by regulation.



13026.  An employer shall not be required to deduct and withhold any
tax under this division upon a payment of wages (except wages exempt
from federal income tax but not exempt under this division) to an
employee if there is in effect with respect to such payment a
withholding exemption certificate, in such form and containing such
other information as the department may prescribe, furnished to the
employer by the employee certifying that the employee--
   (a) Incurred no liability for federal income tax imposed under
subtitle A of the Internal Revenue Code of 1954 for his or her
preceding taxable year, and
   (b) Anticipates that he or she will incur no liability for federal
income tax imposed under subtitle A of the Internal Revenue Code of
1954 for his or her current taxable year.


13027.  In the case of tips which constitute wages, subdivision (a)
of Section 13020 shall be applicable only to such tips as are
included in a written statement furnished to the employer pursuant to
Section 13055, and only to the extent that the tax can be deducted
and withheld by the employer, at or after the time such statement is
so furnished and before the close of the calendar year in which such
statement is furnished, from such wages of the employee (excluding
tips, but including funds turned over by the employee to the employer
for the purpose of such deduction and withholding) as are under the
control of the employer. An employer who is furnished by an employee
a written statement of tips (received in a calendar month) pursuant
to Section 13055 to which paragraph (2) of subdivision (n) of Section
13009 is applicable may deduct and withhold the tax with respect to
such tips from any wages of the employee (excluding tips) under his
or her control, even though at the time such statement is furnished
the total amount of the tips included in statements furnished to the
employer as having been received by the employee in such calendar
month in the course of his or her employment by the employer is less
than twenty dollars ($20). Such tax shall not at any time be deducted
and withheld in any amount which exceeds the aggregate of such wages
and funds.



13028.  (a) For purposes of this division (and so much of Part 10
(commencing with Section 17001) and Part 10.2 (commencing with
Section 18401) of Division 2 of the Revenue and Taxation Code as
relates to this division) pensions, annuities, and other deferred
income, as described in Section 3405 of the Internal Revenue Code,
are wages and subject to withholding under this division. Amounts
withheld shall be treated as if the amounts are withheld by an
employer for a payroll period and only amounts withheld shall be
reported to the department pursuant to Section 1088 and Section
13021.
   (b) If an individual makes an election under Section 3405(a)(2) or
Section 3405(b)(2) of the Internal Revenue Code not to have tax
withheld, that election shall apply to withholding under this
division, unless the individual elects, with the consent of the
payer, to have those payments subject to withholding under this
division. If an individual has not made an election under Section
3405(a)(2) or Section 3405(b)(2) of the Internal Revenue Code, that
individual may elect to exclude those payments from withholding under
this division. Elections provided in this subdivision shall be made
pursuant to regulations of the director.
   (c) Where Section 3405 of the Internal Revenue Code provides that
tables or other computational procedures shall be prescribed by the
Secretary of the Treasury, for the purposes of this division, any of
the following amounts may be withheld, upon election of the payer:
   (1) An amount determined by the method prescribed under Section
13020.
   (2) A designated dollar amount as requested by the payee.
   (3) Ten percent of the amount of federal withholding computed
pursuant to Section 3405 of the Internal Revenue Code.
   (d) Where the amount of withholding computed pursuant to
subdivision (c) is less than ten dollars ($10) per month, the payer
shall not be required to withhold that amount.
   (e) This section shall not apply to pensions, annuities, and other
deferred income of payees with addresses outside this state, as
shown on the most current records of the payer.
   (f) The department shall, in consultation with the affected payers
and payees, issue regulations to implement this section.
   Those regulations shall provide for delay (but not beyond July 1,
1987) of the application of this section with respect to any payer or
class of payers until that time as the payers are able to comply
without undue hardship with the requirements of this section. In that
case, no retroactive compliance shall be required.




13028.1.  If the director determines that nonpayment of tax by a
nonresident under the income tax laws of this state may occur, the
director shall notify the payer of payments described in subdivision
(a) of Section 13028 that withholding shall be made from those
payments. Upon notice from the director, the payer shall withhold
from those payments as if they were subject to Section 13020. The
director shall also notify the payee that withholding has been
ordered pursuant to this section, and the reason for his or her
determination that nonpayment of tax may occur.



13028.5.  (a) For purposes of this division (and so much of Part 10
(commencing with Section 17001) and Part 10.2 (commencing with
Section 18401) of Division 2 of the Revenue and Taxation Code as
relates to this division) any supplemental unemployment compensation
benefit paid to an individual shall be treated as if it were a
payment of wages by an employer to an employee for a payroll period.
   (b) For purposes of subdivision (a), "supplemental unemployment
compensation benefits" means amounts which are paid to an employee,
pursuant to a plan to which the employer is a party, because of an
employee's involuntary separation from employment (whether or not
that separation is temporary), resulting directly from a reduction in
force, the discontinuance of a plant or operation, or other similar
conditions, but only to the extent those benefits are includable in
the employee's gross income.



13028.6.  (a) For purposes of this division (and so much of Part 10
(commencing with Section 17001) and Part 10.2 (commencing with
Section 18401) of Division 2 of the Revenue and Taxation Code as
relates to this division), any payment to an individual of sick pay
which does not constitute wages (determined without regard to this
subdivision), if at the time the payment is made a request that such
sick pay be subject to withholding under this division is in effect,
shall be treated as if it were a payment of wages by an employer to
an employee for a payroll period.
   (b) For purposes of this subdivision, "sick pay" means any amount
which satisfies both of the following:
   (1) Is paid to an employee pursuant to a plan to which the
employer is a party.
   (2) Constitutes remuneration or a payment in lieu of remuneration
for any period during which the employee is temporarily absent from
work on account of sickness or personal injuries.
   (c) If a payee makes a request that any sick pay be subject to
withholding under this chapter, the amount to be deducted and
withheld under this chapter from any payment to which that request
applies shall be an amount (not less than a minimum amount determined
by the Franchise Tax Board) specified by the payee in that request.
The amount deducted and withheld with respect to a payment which is
greater or less than a full payment shall bear the same relation to
the specified amount as that payment bears to a full payment.
   (1) A request that any sick pay be subject to withholding under
this chapter shall satisfy all of the following:
   (A) Shall be made by the payee in writing to the person making the
payments and shall contain the social security number of the payee.
   (B) Shall specify the amount to be deducted and withheld from each
full payment.
   (C) Shall take effect with respect to payments made more than
seven days after the date on which that request is furnished to the
payer, or as the department shall by regulations prescribe. That
request may be changed or terminated by furnishing to the person
making the payments a written statement of change or termination
which shall take effect in the same manner as provided in the
preceding sentence. At the election of the payer, any such request
(or statement of change or revocation) may take effect earlier than
as provided in this subparagraph.
   (2) Any sick pay paid pursuant to a collective bargaining
agreement between employee representatives and one or more employers
which contains a provision specifying that this paragraph is to apply
to sick pay paid pursuant to that agreement and contains a provision
for determining the amount to be deducted and withheld from each
payment of that sick pay as follows:
   (A) The requirement of paragraph (3) of subdivision (a) that a
request for withholding be in effect shall not apply.
   (B) Except as provided in Section 13026, the amounts to be
deducted and withheld under this chapter shall be determined in
accordance with that agreement.
   The preceding sentence shall not apply with respect to sick pay
paid pursuant to any agreement to any individual, unless the social
security number of that individual is furnished to the payer and the
payer is furnished with that information as is necessary to determine
whether the payment is pursuant to the agreement and to determine
the amount to be deducted and withheld.



13029.  The department may by authorized regulations provide for
withholding--
    (a) From remuneration for services performed by an employee for
his or her employer which (without regard to this section) does not
constitute wages, and
    (b) From any other type of payment with respect to which the
department finds that withholding would be appropriate under the
provisions of this division,
   if the employer and the employee, or in the case of any other type
of payment the person making and the person receiving the payment,
agree to the withholding. The agreement shall be made in the form and
manner as the department may by authorized regulations provide. For
purposes of this division (and so much of Part 10 (commencing with
Section 17001) and Part 10.2 (commencing with Section 18401) of
Division 2 of the Revenue and Taxation Code as relates to this
division) remuneration or other payments with respect to which the
agreement is made shall be treated as if they were wages paid by an
employer to an employee to the extent that the remuneration is paid
or other payments are made during the period for which the agreement
is in effect.



13030.  If wages are paid with respect to a period which is not a
payroll period, the amount to be deducted and withheld shall be that
applicable in the case of a miscellaneous payroll period containing a
number of days, including Sundays and holidays, equal to the number
of days in the period with respect to which such wages are paid. In
any case in which wages are paid by an employer without regard to any
payroll period or other period, the amount to be deducted and
withheld shall be that applicable in the case of a miscellaneous
payroll period containing a number of days equal to the number of
days, including Sundays and holidays, which have elapsed since the
date of the last payment of such wages by such employer during the
calendar year, or the date of commencement of employment with such
employer during such year, or January 1st of such year, whichever is
the later. In any case in which the period of time described, or the
time prescribed in the preceding sentence in respect of any wages, is
less than one week, the department may by authorized regulation
permit an employer, in computing the tax required to be deducted and
withheld, to use the excess of the aggregate of the wages paid to the
employee during the calendar week over the withholding exemption
allowed by Section 13020 for a weekly payroll period.



13031.  If the remuneration paid by an employer to an employee for
services performed during one-half or more of any payroll period of
not more than 31 consecutive days constitutes wages, all the
remuneration paid by such employer to such employee for such period
shall be deemed to be wages, but if the remuneration paid by an
employer to an employee for services performed during more than
one-half of any such payroll period does not constitute wages, then
none of the remuneration paid by such employer to such employee for
such period shall be deemed to be wages.

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13040.  (a) An employer shall use the exemption certificate filed by
the employee with the employer in such form and containing such
information as the department may prescribe, for determining the
number of withholding exemptions to be allowed in computing the tax
required to be deducted and withheld under Section 13020. However, if
the employer cannot determine the employee's marital status from the
exemption certificate the employee shall be considered unmarried.
   (b) No withholding exemptions shall be allowed until the employee
files a new withholding exemption certificate if the department finds
that the withholding exemption certificate filed under this division
does not properly reflect the number of exemptions allowable and so
advises the employer in writing.



13041.  The number and amount of withholding exemptions allowed
shall be based upon the persons claimed in a withholding exemption
certificate in effect under Section 13040, except that if no such
certificate is in effect, the number of withholding exemptions
claimed shall be considered to be zero.



13042.  A new withholding exemption certificate filed under this
division in cases in which a previous certificate was in effect shall
take effect with respect to the first payment of wages made on or
after the first status determination date which occurs at least 30
days from the date on which such certificate is so furnished, except
that at the election of the employer such certificate may be made
effective with respect to any payment of wages made on or after the
date on which such certificate is so furnished.
   For purposes of this section, "status determination date," means
January 1, May 1, July 1, and October 1, of each year.




13043.  (a) The amount to be deducted and withheld under this
division shall be prescribed pursuant to Section 18663 of the Revenue
and Taxation Code when a payment of wages is made to an employee by
an employer in any of the following cases:
   (1) With respect to a payroll period or other period, any part of
which is included in a payroll period or other period with respect to
which wages are also paid to the employee by the employer.
   (2) Without regard to any payroll period or other period, but on
or prior to the expiration of a payroll period or other period with
respect to which wages are also paid to the employee by the employer.
   (3) With respect to a period beginning in one and ending in
another calendar year.
   (4) Through an agent, fiduciary, or other person who also has the
control, receipt, custody, or disposal of, or pays, the wages payable
by another employer to the employee.
   (b) For purposes of this section, an employee's remuneration may
consist of wages paid for a payroll period and supplemental wages.
   Supplemental wages include, but are not limited to, bonus
payments, overtime payments, commissions, sales awards, back pay
including retroactive wage increases, and reimbursements for
nondeductible moving expenses that are paid for the same or different
period, or without regard to a particular period.
   (c) When any supplemental wages are paid subsequent to the payment
of regular wages, the employer may determine the personal income tax
to be withheld from supplemental wages paid by (1) using a flat
percentage rate pursuant to subdivision (b) of Section 18663 of the
Revenue and Taxation Code without allowance for exemptions and
credits and without reference to any regular payment of wages, or (2)
adding the supplemental wages to the regular wages paid the employee
and computing the personal income tax to be withheld on the whole
amount (the computed tax minus the tax withheld from the regular
wages shall be withheld from the supplemental wages). Where
supplemental wages are paid at the same time as regular wages, the
personal income tax to be withheld shall be computed on the total of
the supplemental and regular wages and shall be determined as if the
total of the supplemental wages and the regular wages constituted a
single wage payment for the regular payroll period.
   (d) For stock options and bonus payments that constitute wages
paid on or after January 1, 2002, the employer may determine the
personal income tax to be withheld from the stock options and bonus
payments paid by either (1) using a flat percentage rate pursuant to
subdivision (c) of Section 18663 of the Revenue and Taxation Code,
without allowance for exemptions and credits and without reference to
any regular payment of wages, or (2) adding the stock options and
bonus payments to the regular wages paid the employee and computing
the personal income tax to be withheld on the whole amount (the
computed tax minus the tax withheld from the regular wages shall be
withheld from the stock options and bonus payments). Where the stock
options and bonus payments are paid at the same time as regular
wages, the personal income tax to be withheld shall be computed on
the total of the stock options and bonus payments and regular wages,
and shall be determined as if the total of the stock options and
bonus payments and the regular wages constituted a single wage
payment for the regular payroll period.

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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) The name of the person.
   (2) The name of the employee, and his or her social security or
identifying number if wages have been paid.
   (3) The total amount of wages subject to personal income tax, as
defined by Section 13009.5.
   (4) The total amount deducted and withheld as tax under Section
13020.
   (5) The total amount of worker contributions paid by the employee
pursuant to Section 986.
   (6) The total amount of worker contributions paid by the employee
pursuant to Section 3260.
   (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) 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) 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) The name and, if there is withholding under this division, the
social security number of that employee.
   (2) The total amount of the third-party sick pay paid to that
employee during the calendar year.
   (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) 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) 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) The Franchise Tax Board shall be allowed access to the
information filed with the department pursuant to this section.



13052.  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.


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) 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) 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) Sections 1221 and 1222 of the Unemployment Insurance Code
shall not apply to assessments imposed by this section.
   (e) 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.
   (f) 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.


13055.  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.


13056.  (a) When required by authorized regulations prescribed by
the department:
   (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) 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) 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) (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) 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) 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.



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) To include his or her identifying number in any return,
report, statement, or other document.
   (2) To furnish his or her identifying number to another person.
   (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) To furnish any other agency's taxpayer identification number.
   (b) The penalty under this section shall be assessed and collected
in the same manner as the tax.


13058.  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.


13059.  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.

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13070.  (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.



13071.  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.



13072.  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.



13073.  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.


13074.  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.



13075.  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.




13076.  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.



13077.  (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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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) 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) The credits against those taxes allowed by Sections 17052.1
through 17053.7 and Section 19002.
   (2) The payments of estimated tax which are considered payments on
account of those taxes.
   (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) This section shall apply to acts and failures to act after
December 31, 1981.