SECTIONS 1110-1119 - California Statutes

UNEMPLOYMENT INSURANCE CODE

SECTION 1110-1119

1110. (a) Employer contributions required under Sections 976 and
976.6, the amount of benefits received by any individual pursuant to
this part that is deducted from an award or settlement made by the
employer under the provisions of Section 1382, and, except as
provided by subdivision (b) of this section, worker contributions
required under Section 984 are due and payable on the first day of
the calendar month following the close of each calendar quarter and
shall become delinquent if not paid on or before the last day of that
month.
(b) Worker contributions required under Section 984 are due and
payable at the same time and by the same method as amounts required
to be withheld under Section 13020 are paid to the department
pursuant to Section 13021, regardless of the amount of accumulated
unpaid liability for worker contributions.
(c) Employer contributions submitted pursuant to Section 976.5
shall be paid on or before the last working day of March of the
calendar year to which the reduced contribution rate would be
applicable. Any employer whose eligibility for an unemployment
insurance contribution rate determination is redetermined to make
that employer eligible to submit voluntary unemployment insurance
contributions in accordance with Section 976.5, may submit a
voluntary unemployment insurance contribution within 30 days of the
date of notification of the redetermination.
(d) Except as provided in subdivision (e), any employer described
in Sections 682 and 684 may elect to report and pay employer
contributions required under Sections 976 and 976.6, and worker
contributions required under Section 984, annually. All contributions
are due and payable on the first day of January following the close
of the prior calendar year and shall become delinquent if not paid on
or before the last day of that month. An election under this
subdivision shall be effective the first day of the calendar year in
which it is approved by the department. An election under this
subdivision may not be approved if the employer has an outstanding
return or report delinquency on the records of the department, or an
unpaid amount owed to the department, that is not the subject of a
timely petition for reassessment pending before the appeals board at
the time the election is filed.
(e) Any employer described in Sections 682 and 684 who pays more
than twenty thousand dollars ($20,000) in wages annually, shall not
be entitled to the election allowed in subdivision (d). If at any
time during the year the total wages paid by an employer electing to
file under subdivision (d) exceeds twenty thousand dollars ($20,000),
the election shall be terminated at the close of that calendar
quarter. In addition to the report of wages due for that quarter, the
employer shall file a return and pay any contributions due for that
portion of the year during which the election was in effect, and
shall pay contributions in accordance with subdivisions (a), (b), and
(c) for the remainder of that year.
(f) Contributions due pursuant to this section may be submitted by
electronic funds transfer, as defined in Section 13021.5.
Contributions submitted by electronic funds transfer shall be deemed
complete in accordance with paragraph (4) of subdivision (e) of
Section 13021.

1110.1. (a) Notwithstanding any other provision of law, the
director shall allocate any payment to the department relating to
liability for contributions, withheld personal income tax, penalty
and interest, in accordance with any designation made by the payer at
or before the time the payment is made to the department.
(b) Notwithstanding any other provision of law, if a payer, at or
before the time a payment is made to the department, does not
designate an obligation to which the payment is to be applied, the
director shall allocate the payment in the following order of
priority:
(1) Employer contributions required under Sections 976 and 976.6,
worker contributions, and withheld personal income tax, in proportion
to the aggregate amount of such employer contributions, worker
contributions, and withheld personal income tax due.
(2) Penalties and interest due under this division, and penalties
and interest due based upon withheld personal income tax.
(c) The director may apply the following standards in making any
allocation under this section:
(1) First priority may be given to the extinction of obligations
due at the time of payment with respect to which a lien has not been
recorded, in the order inverse to that in which the obligation became
due.
(2) Second priority may be given to the extinction of obligations
due at the time of payment with respect to which a lien has been
recorded. If more than one lien has been recorded, the obligations
covered by the most recent lien recorded may be extinguished in full
before any payment is allocated to obligations covered by the next
prior lien recorded.

1110.6. Notwithstanding the provisions of Section 1110, whenever
the liability of an employer for contributions under this division
arises under the terms of a written contract in which such employer
has agreed, for the benefit of another party to such contract, to
assume ultimate liability for contributions under this division in
the event of the default in payment thereof by any other employer
affected by such contract, such contributions shall not become
delinquent and no penalties or interest prescribed by this chapter
shall commence to accrue with respect to such contracting employer,
until after the 30th day following the date of mailing or service of
notice upon him, by the director, of the default of any such other
employer.

1111. The director for good cause may extend for not to exceed 60
days the time for making a return or report or paying without penalty
any amount required to be paid under this division. Any employer to
whom an extension is granted and who pays the amount required within
the period for which the extension is granted shall pay, in addition
to the contributions, interest at the adjusted annual rate and by the
method established pursuant to Section 19521 of the Revenue and
Taxation Code from the date on which the payment would have been
delinquent without the extension until the date of payment.

1111.5. If the Governor declares a state of emergency, the director
may extend the time requirements for filing returns or reports
pursuant to Section 1088 and the time requirement for payment of
employer and worker contributions pursuant to Section 1110. The
extension granted by the director pursuant to this section shall
apply only to employers prevented by the conditions giving rise to
the state of emergency from timely filing their returns or reports,
or from timely payment of the taxes due.

1112. (a) Any employer who without good cause fails to pay any
contributions required of him or her or of his or her workers, except
amounts assessed under Article 8 of this chapter, within the time
required shall pay a penalty of 10 percent of the amount of those
contributions.
(b) Any employer required to remit payments by electronic funds
transfer pursuant to Section 13021, who without good cause remits
those amounts by means other than electronic funds transfer shall pay
a penalty of 10 percent of the amount of those contributions.

1112.5. (a) Any employer who without good cause fails to file the
return and reports required by subdivision (a) of Section 1088 and
subdivision (a) of Section 13021 within 60 days of the time required
under subdivision (a) of Section 1110 shall pay a penalty of 10
percent of the amount of contributions and personal income tax
withholding required by this report. This penalty shall be in
addition to the penalties required by Sections 1112 and 1126.
(b) For purposes of subdivision (a), the amount of contributions
and personal income tax required by the report of contributions shall
be reduced by the amount of any contributions and personal income
tax paid on or before the prescribed payment dates.

1113. Any employer who fails to pay any contributions required of
him or of his workers, except amounts assessed under Article 8
(commencing with Section 1126), within the time required shall become
liable for interest on such contributions at the adjusted annual
rate and by the method established pursuant to Section 19521 of the
Revenue and Taxation Code from and after the date of delinquency
until paid.

1113.1. An employer who, through an error caused by excusable
neglect, makes an underpayment of the amount due on a report of
contributions pursuant to subdivision (b) of Section 1088 shall not
be liable for penalty or interest under Sections 1112, 1113, 1127 or
1129 if proper adjustment is made at the time of the filing of the
quarterly report of contributions and quarterly return, for the same
calendar quarter under subdivision (a) of Section 1088 and an
explanation of the error is attached to the report or return.

1114. (a) Any employer who, without good cause, fails to file
within 15 days after service by the director of notice pursuant to
Section 1206 of a specific written demand therefor, a report of wages
of each of his or her workers required by this division, shall pay
in addition to other amounts required, for each unreported wage item
a penalty of ten dollars ($10).
(b) Any employer required by this division to file a report of
wages of each of his or her workers on magnetic media as prescribed
by subdivision (f) of Section 1088, who, without good cause, instead
files a report of wages on paper or in another form, shall pay in
addition to other amounts required, for each wage item a penalty of
ten dollars ($10).

1115. (a) If the director finds that the collection of any
contributions will be jeopardized in any case where an employing unit
is insolvent, or is delinquent in a substantial amount of
contributions due under this division, or is about to discontinue
business at any of its known places of business, or the business is
of a temporary or seasonal nature, the director may, upon giving the
employing unit 10 days' notice pursuant to Section 1206:
(1) Require payment of contributions with respect to wages paid
from the beginning date of the calendar quarter in which notice is
given to the date designated in the notice.
(2) Require payment of contributions for reporting periods less
than calendar quarters.
(b) As used in this section "reporting period" means that period
less than a calendar quarter which is established by the director.
(c) Contributions required under subdivision (a)(1) of this
section are due and payable on the date designated in the notice and
shall become delinquent if not paid within 10 days of the due date.
(d) Contributions required under subdivision (a)(2) of this
section are due and payable on the first day of the reporting period
following the close of each reporting period and shall become
delinquent if not paid within 10 days of the due date.
(e) The employing unit shall file within the time required for
payment of contributions under this section a report or return as
required by Section 1088, in the form and containing the information
that the director prescribes.

1116. (a) (1) Every employing unit except a domestic or foreign
corporation or a domestic or foreign limited liability company shall,
within 10 days of quitting business, file with the director a final
return and report of wages of its workers, in such form and
containing such information as the director prescribes.
(2) Every domestic corporation and domestic limited liability
company shall, within 10 days of quitting business or within 10 days
of the commencement of proceedings to windup its affairs and
voluntarily dissolve, whichever expires the earlier, file with the
director a return and a report of wages of its workers, in such form
and containing such information as the director prescribes.
(3) Every foreign corporation and foreign limited liability
company shall, within 10 days of quitting business or within 10 days
of the surrender of its right to engage in business of this state in
accordance with Section 2112 and subdivision (d) of Section 2114 of
the Corporations Code for foreign corporations or Section 17455 of
the Corporations Code for foreign limited liability companies,
whichever expires the earlier, file with the director a final return
and report of wages of its workers, in such form and containing such
information as the director prescribes.
(4) As used in this section, "quitting business" does not include
any change in the form or membership of an employing unit if before
and after such change 50 percent or more of the control of management
is held by the same individual, or is held by an individual before
death and after the individual's death by the individual's estate or
heirs.
(b) Contributions with respect to a return required under
subdivision (a) are due and payable on the first day of the
applicable 10-day period established pursuant to subdivision (a) and
shall become delinquent if not paid within 10 days of the due date.
(c) The director for good cause may extend for not to exceed 30
days the time for making a return or paying without penalty or
interest any amount required to be paid under this section.

1117. If any employer fails to file the annual reconciliation
return described in subdivision (e) of Section 1088 or subdivision
(j) of Section 13021 on or before 30 days after notice has been given
to the employer of his or her failure to file, unless the failure is
due to good cause, the employer, in addition to any other penalties
imposed by this code, shall pay a penalty of one thousand dollars
($1,000), or 5 percent of the employer and worker contributions
required to be reconciled by subdivision (e) of Section 1088,
whichever is less.

1118. (a) This section applies only to employers who employ
individuals to perform domestic service, as described in Sections 682
and 684.
(b) Effective July 1, 1997, notwithstanding Section 1088, a
domestic service employer shall be authorized to file the report of
wages required by Section 1088 by telephone. This does not apply to
the filing of Internal Revenue Service Form W-2.
(c) The department shall notify all domestic service employers of
the availability of the telephone reporting system. A domestic
service employer shall be required to make an election to report by
telephone or by mail. After a domestic service employer elects to
report by telephone, the employer is required to report in that mode
for the remainder of the calendar year. If a domestic service
employer makes this election in the second or subsequent quarter of a
calendar year, the employer shall be required to report by telephone
for the remainder of the calendar year and for all four quarters of
the subsequent calendar year. A domestic service employer who has
elected to report by telephone and who is eligible under this
subdivision to change the reporting mode shall provide 30 days'
notice to the department in order to begin reporting by mail.
(d) A domestic service employer reporting by telephone shall be
required to provide the department with the employer's account
number, the social security numbers of all employees, and the wages
paid to each employee for the reporting period. The department may
request additional information in order to determine the amount of
wages that are taxable.
(e) The department shall compute the contributions owed based upon
the wage information reported by the domestic service employer.
(f) A domestic service employer reporting by telephone shall be
permitted to pay the contributions owed by credit card or charge
card. The payment shall be subject to the State Payment Card Act (Ch.
2.6 (commencing with Section 6160) of Div. 7, Title 1, Gov. C.).
(g) If a domestic service employer reporting by telephone does not
pay by credit card or charge card, the department shall advise the
employer of the due date for the payment and of any penalties and
interest that will be charged if a payment is late.

1119. The director shall notify the United States Internal Revenue
Service and the United States Department of Labor of the failure of
any Indian tribe (as described by subsection (u) of Section 3306 of
Title 26 of the United States Code) to make a payment of any amount
required to be paid under this article within 90 days of the date of
a notice specifying the amount due. If the amount due is subsequently
paid by the Indian tribe, the director shall notify the United
States Internal Revenue Service and the United States Department of
Labor of the satisfaction of the liability.