CHAPTER 4. Contributions and Reports [901. - 1243.]

Chapter 4 enacted by Stats. 1953, Ch. 308.

§§ 901–1243 · 167 sections

1. ARTICLE 1. Definitions §§ 901–906 · 6 sections

   • § 901 The definitions set forth in this article are applicable to this chapter only.
   • § 902 “Computation date” means the close of business on June 30th, of each calendar year for the purpose of establishing contribution rates for the next succeeding…
   • § 903 “Rating period” means the full calendar year next succeeding any computation date.
   • § 904 “Net balance of reserve” means the excess, if any, of credits required to be made to any employer’s account over the charges against that account as of any…
   • § 905 “Average base pay roll” means the quotient obtained by dividing by three the total amount of taxable wages paid by an employer during the most recent period of…
   • § 906 “Contributions paid on his own behalf” means: (a) All contributions paid under this part to the Unemployment Fund on behalf of an employer with respect to…
2. ARTICLE 2. “Wages,” the Basis of the Contribution §§ 926–940 · 24 sections

   • § 926 Except as otherwise provided in this article “wages” means all remuneration payable to an employee for personal services, whether by private agreement or…
   • § 926.5 “Wages” also means all remuneration payable for personal services, as specified in Section 926, when the legal obligation for the payment of such wages is…
   • § 927 “Wages” also means all tips which are received while performing services which constitute employment and included in a written statement furnished to the…
   • § 928 Unless otherwise specifically provided, the definitions and qualifications of deferred compensation plans shall be determined for purposes of this part in…
   • § 928.5 “Wages” also includes all of the following: (a) Any employer contributions under a qualified cash or deferred arrangement, as defined by Section 401(k) of the…
   • § 928.7 “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…
   • § 929 “Wages” does not include the actual amount of any required or necessary business expense incurred by an individual in connection with his employment, or, in…
   • § 930 “Wages” does not include remuneration in excess of seven thousand dollars ($7,000) paid to an individual by an employer during any calendar year, with respect…
   • § 930.1 For the purpose of determining whether an employer has paid remuneration with respect to employment in excess of the limitation prescribed by Section 930 to an…
   • § 930.5 If an employer during any calendar year acquires substantially all the property used in a trade or business of another employer, or used in a separate unit of…
   • § 931 “Wages” does not include the amount of any payment, including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any…
   • § 931.5 (a) Except for Part 2 (commencing with Section 2601) of this division and Division 6 (commencing with Section 13000), any third party which makes a payment…
   • § 933 “Wages” does not include any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or…
   • § 934 “Wages” does not include any payment made to, or on behalf of, an employee or his or her beneficiary: (a) From or to a trust described in Section 401(a) of the…
   • § 935 “Wages” does not include the payment by an employer, without deduction from the remuneration of the employee, of the tax imposed upon an employee under Section…
   • § 936 “Wages” does not include remuneration paid in any medium other than cash to an employee for service not in the course of the employer’s trade or business,…
   • § 937 “Wages” does not include the payment to, or on behalf of, an employee for moving expenses, if at the time of the payment it is reasonable to believe that a…
   • § 938 (a) “Wages” does not include any payment or series of payments by an employer to an employee or any of his or her dependents which is paid: (1) Upon or after…
   • § 938.3 “Wages” does not include any payment made, or benefit furnished to, or for the benefit of, an employee, for any of the following: (a) An educational assistance…
   • § 938.4 “Wages” does not include any payment made, or benefit furnished to, or for the benefit of, an employee under Section 105(b) of the Internal Revenue Code,…
   • § 938.5 “Wages” does not include any payment received by a member of the National Guard or reserve component of the armed forces for inactive duty training, annual…
   • § 938.7 “Wages,” does not include any payment made by an employer to a survivor, or the estate of a former employee, after the calendar year in which the employee died.
   • § 939 Types of payments excluded from the definition of wages by Sections 931, 931.5, 933, 934, 935, 936, 937, 938, 938.1, 938.3, and 938.7 shall be excluded from the
   • § 940 For the purposes of this section, of Sections 977 and 977.5 to the extent specified by those sections, and of Sections 1026, 1088, 1280, 1281, 1282, 2652, 2654,
3. ARTICLE 3. Contribution Rates §§ 976–995 · 25 sections

   • § 976 Employer contributions to the Unemployment Fund shall accrue and become payable by every employer, except an employer as defined by Section 676, for each…
   • § 976.5 (a) Except as provided in subdivision (b), in addition to other contributions required by this division, every employer, except an employer to which…
   • § 976.6 In addition to other contributions required by this division, every employer, except an employer defined by Section 676, 684, or 685, and except an employer…
   • § 976.8 (a) Section 976.6 does not apply to any employer who has a negative reserve account balance on the computation date. (b) Subdivision (a) does not apply to an…
   • § 977 (a) Except as provided in subdivision (c), if, as of the computation date, the employer’s net balance of reserve equals or exceeds that percentage of his or…
   • § 977.5 Whenever the balance in the Unemployment Fund on September 30 of any calendar year is less than 0.6 percent of the wages (as defined by Section 940) in…
   • § 979 On or before January 10 of each calendar year, the director shall prepare a statement based on records of the department declaring which of the employer tax…
   • § 980 (a) In determining the balance in the Unemployment Fund for the purpose of Sections 977 and 977.5, there shall be excluded all of the following: (1) Any amount…
   • § 980.5 In determining the balance in the Unemployment Fund for the purpose of Sections 977 and 977.5, there shall be included both of the following: (a) The…
   • § 981 In determining wages in employment, for the purpose of Sections 977 and 977.5, there shall be excluded all wages paid in employment under any type of coverage…
   • § 982 (a) Except as provided in subdivision (b), no employer shall be eligible for a contribution rate of more or less than 3.4 percent for any rating period unless…
   • § 984 (a) (1) Each worker shall pay worker contributions at the rate determined by the director pursuant to this section with respect to wages, as defined by…
   • § 984.5 (a) Effective January 1, 1994, the director shall prepare a statement on or before November 30 of each calendar year, which shall be a public record, declaring…
   • § 985 (a) Section 984 shall not apply to that part of the remuneration which, after remuneration with respect to employment equal to four times the maximum weekly…
   • § 986 (a) Notwithstanding any provision of law in this state to the contrary, each employer shall: (1) Except as provided in subdivision (a)(2) of this section,…
   • § 987 Each employer shall be liable for any and all contributions required to be made by his workers on account of wages which he has paid to them regardless of…
   • § 987.7 (a) If the worker contributions required in any one month to be made because of the receipt of cash tips and cash gratuities exceed the wages of the worker…
   • § 988 In case of the insolvency or bankruptcy of an employer, contributions by workers, payable as provided in this article, shall not be considered any part of the…
   • § 989 The annual tax rate or contribution rate which under this division is determined to apply to any particular employee or any particular employer, or group of…
   • § 990 In the payment of any contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent ($0.005) or more, in which case it…
   • § 991 (a) Any contributions paid to the Unemployment Fund or Disability Fund either with respect to wages on which contributions previously have been paid in error…
   • § 992 During such time as the Federal Unemployment Tax Act is amended so that employers are allowed, against the tax imposed by Section 3301 of that act, credits…
   • § 993 Every employer who is subject to the tax provided for by Section 3301 of the Federal Unemployment Tax Act, shall, subject to Section 992, pay into the…
   • § 994 Sections 992 and 993 shall not become operative unless the Secretary of Labor certifies that they are in conformity with the provisions of Title III of the…
   • § 995 The department shall submit to the Legislature in January and May of each year a report on the status of the Unemployment Fund and the Unemployment…
4. ARTICLE 4. Reserve Accounts §§ 1025–1037 · 19 sections

   • § 1025 The director shall keep separate records of the amounts paid into the fund by each employer in his or her own behalf, or chargeable to him or her as benefits;…
   • § 1026 (a) The director shall maintain a separate reserve account for each employer, and shall credit each reserve account with all the contributions paid on his or…
   • § 1026.1 Notwithstanding any other provision of this code, an employer’s reserve account shall not be relieved of charges relating to a benefit overpayment if the…
   • § 1026.2 (a) Notwithstanding subdivision (b) of Section 1026 or any other law, for the duration of all federal unemployment benefit programs specifically created to… see note
   • § 1027.1 On the computation date in 1966, the portion of each negative reserve balance which has not previously been charged to the balancing account shall be…
   • § 1027.5 On the computation date each year, the amount each employer’s net balance of reserve is more negative than 21 percent of the employer’s average base payroll…
   • § 1027.6 On the computation date of June 30, 1983, the amount each employer’s net balance of reserve was more negative than 12 percent of the employer’s average base…
   • § 1028 The charge of unemployment compensation benefits to an employer’s account required by Section 1026 shall be made in such manner as to include as of each…
   • § 1029 (a) Whenever an employer ceases to pay wages in employment, the reserve account of the employer, unless it has been transferred under Article 5 (commencing…
   • § 1030 (a) An employer that is entitled under Section 1327 to receive notice of the filing of a new or additional claim may, within 10 days after mailing of the…
   • § 1030.1 (a) If the employment of an individual is terminated due to his absence from work for a period in excess of 24 hours because of his incarceration and he is…
   • § 1031 No ruling made under Section 1030 may constitute a basis for the disqualification of any claimant but a determination by the department made under the…
   • § 1032 If it is ruled under Section 1030 or 1328 that the claimant left the employer’s employ voluntarily and without good cause, or left under one of the following…
   • § 1032.5 (a) Any base period employer may, within 15 days after mailing of a notice of computation under subdivision (a) of Section 1329, submit to the department facts…
   • § 1033 The director shall not less frequently than once each year furnish each employer with an itemized statement of the charges to the reserve account, and a…
   • § 1034 (a) The employer, within 60 days after the date of mailing of any statement of charges or credits and charges to the reserve account, or within an additional…
   • § 1035 The director shall give notice pursuant to Section 1206 to the employer of his or her action on a protest filed under Section 1034.
   • § 1036 (a) The director shall give notice, pursuant to Section 1206, to the employer of the correction of any error which the director finds in any statement of…
   • § 1037 If a protest involving the contribution rate is pending when any contribution to which such rate relates is due, the employer shall pay the contribution at the…
5. ARTICLE 5. Transfer of Reserve Accounts §§ 1051–1061 · 11 sections

   • § 1051 Whenever any employing unit acquires the organization, trade, or business, or substantially all of the assets thereof, or a distinct and severable portion of…
   • § 1051.5 To the extent permitted by federal law, Sections 1051, 1052, and 1053 are applicable to acquisitions by a nonprofit organization which has elected…
   • § 1052 Upon receipt of the application the separate account, actual contribution and benefit experience and payrolls of the predecessor or that part thereof, as…
   • § 1053 Sections 1051 and 1052 are applicable to applications for transfer of reserve accounts made after the 90-day period beginning with the date of acquisition but…
   • § 1054 The provisions of this article requiring a specific application for transfer of reserve account shall not apply to any successor who through error or…
   • § 1055 In the event of a denial or granting of an application for transfer of reserve account, the director shall give notice pursuant to Section 1206 to the…
   • § 1056 The director may prescribe regulations for the establishment, maintenance, and dissolution of joint accounts by two or more employers and shall, in accordance…
   • § 1057 Upon dissolution of a joint venture each participating employer may within 90 days apply for the transfer of his proportionate share of the reserve account.…
   • § 1058 As used in this article the term “joint venture” means a separate employing unit which has been organized by two or more employers to accomplish a contract or…
   • § 1060 A change in contribution rate caused by a transfer under this article of all or a portion of the separate account, actual contribution and benefit experience…
   • § 1061 (a) For purposes of this article, the reserve account attributable to a transferred business shall also be transferred to, and combined with, the reserve…
6. ARTICLE 6. Records, Reports and Contribution Payments §§ 1085–1098 · 18 sections

   • § 1085 Every employing unit shall keep a true and accurate work record of: (a) All his workers and their status, i.e., employed, on layoff or leave of absence. (b)…
   • § 1086 (a) Each employing unit within 15 days after becoming an employer as defined in this part shall register with the department on a form prescribed by the…
   • § 1087 Any officer or employee of the Sales and Use Tax Division of the Board of Equalization who is authorized to accept an application for a seller’s permit under…
   • § 1088 (a) (1) Each employer shall file with the director within the time required by subdivision (a) or (d) of Section 1110 for payment of employer contributions, a…
   • § 1088.5 (a) In addition to information reported in accordance with Section 1088, effective July 1, 1998, each employer shall file, with the department, the information…
   • § 1088.6 Each employer, pursuant to authorized regulations, shall furnish a written statement to the worker showing the excess of the worker contributions required with…
   • § 1088.8 (a) Effective January 1, 2001, any service-recipient, as defined in subdivision (b), who makes or is required to make a return to the Internal Revenue Service,…
   • § 1088.9 (a) Commencing with the first calendar quarter of calendar year 2026, a motion picture payroll services company shall file with the director, within the same…
   • § 1089 (a) Each employer shall post and maintain, in places readily accessible to individuals in the employer’s service, printed statements concerning benefit rights…
   • § 1090 (a) Every assignee, receiver, trustee in bankruptcy, or other representative of an insolvent employing unit, and every administrator or executor of the estate…
   • § 1092 Every employing unit shall furnish to the director, administrative law judge, or deputy, upon demand, a sworn statement of the matters contained in the records…
   • § 1093 In the event any employer shall fail to keep and furnish to the director, upon notice, any required records or reports necessary for a full determination,…
   • § 1094 (a) Except as otherwise specifically provided in this code, the information obtained in the administration of this code is confidential, not open to the…
   • § 1095 The director shall permit the use of any information in the director’s possession to the extent necessary for any of the following purposes, and may require…
   • § 1095.5 (a) (1) The director shall permit the use of any information in their possession to the extent necessary to enable the Behavioral Health Services Oversight and…
   • § 1096 Where a number of workers are normally employed in employment in the course of a year by several employers, such employers, with the approval of the director,…
   • § 1097 The manner of crediting to each employer the employment experience of the group of employers who have appointed an agent pursuant to Section 1096, for the…
   • § 1098 Nothing contained in Sections 1096 or 1097 shall be construed to make the agent the employer of the workers, or relieve any employer of his obligations to…
7. ARTICLE 7. Payment of Reported Contributions §§ 1110–1119 · 15 sections

   • § 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…
   • § 1110.1 (a) Notwithstanding any other provision of law, the director shall allocate any payment to the department relating to liability for contributions, withheld…
   • § 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…
   • § 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…
   • § 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…
   • § 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…
   • § 1112.1 (a) An employer who is required to file a quarterly return electronically pursuant to Section 1088 and without good cause fails to file a quarterly return…
   • § 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…
   • § 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),…
   • § 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)…
   • § 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…
   • § 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…
   • § 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…
   • § 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…
   • § 1119 The director shall notify the United States Internal Revenue Service and the United States Department of Labor of the failure of an Indian tribe (as described…
8. ARTICLE 8. Assessments §§ 1126–1145 · 21 sections

   • § 1126 (a) If any employing unit fails to make a return or report as required under this division, the director shall make an estimate based upon any information in…
   • § 1126.1 (a) If any employing unit fails to register with the department as required under Section 1086, and the failure is due to intentional disregard or intent to…
   • § 1127 (a) If the director is not satisfied with any return or report made by any employing unit of the amount of employer or worker contributions, he or she may…
   • § 1127.5 (a) If the director determines that an individual or entity that is reporting employee wages pursuant to Section 1088 or other applicable sections is not the…
   • § 1128 (a) If the failure of the employing unit to file a return or report within the time required by this division and authorized regulations or if any part of the…
   • § 1128.1 (a) If the director finds that an individual or business entity has exchanged money on behalf of an employer and the employer used the cash proceeds from the…
   • § 1129 The amount of each assessment shall bear interest at the adjusted annual rate and by the method established pursuant to Section 19521 of the Revenue and…
   • § 1130 One or more assessments may be made for the amount due for one or for more than one period and overpayments may be offset against underpayments.
   • § 1131 The director shall give to the employing unit against whom an assessment is made a written notice of the assessment pursuant to Section 1206.
   • § 1132 Except in the case of failure without good cause to file a return or report, fraud or intent to evade any provision of this division or authorized regulations,…
   • § 1135 (a) Assessments under this article become delinquent if not paid on or before the date they become final pursuant to Sections 1036, 1221, 1222, and 1224. There…
   • § 1136 If the director finds that an assessment or portion thereof has been erroneously made, he may cancel the assessment or portion thereof in the following cases:…
   • § 1137 (a) If the director finds, in accordance with Section 1137.1, that the collection of any contributions will be jeopardized by delay the director shall…
   • § 1137.1 A jeopardy assessment may be made only upon a finding by the director, based upon probable cause, that any of the following conditions are met: (a) The…
   • § 1141 When an assessment for worker contributions that is made pursuant to the provisions of this article becomes final against a farm labor contractor, as defined…
   • § 1141.1 The director shall notify the United States Internal Revenue Service and the United States Department of Labor of the failure of an Indian tribe (as described…
   • § 1142 (a) If the director finds that any employer or any employee, officer, or agent of any employer, in submitting facts concerning the termination of a claimant’s…
   • § 1142.1 (a) If the director finds that any employer or any employee, officer, or agent of any employer, in submitting facts concerning the termination of a claimant’s…
   • § 1143 If the director finds that any individual falsely certifies the medical condition of any person in order to obtain disability insurance benefits, including…
   • § 1144 (a) Any employer who induces, solicits, or coerces an employee to file a false or fraudulent claim for benefits shall be assessed a penalty in an amount equal…
   • § 1145 (a) If the director finds that a person or business entity knowingly advises another person or business entity to violate any provision of this chapter, the…
9. ARTICLE 8.6. Motor Carrier Employer Amnesty Program §§ 1160–1164 · 3 sections

   • § 1160 (a) The department shall collaborate with the Labor Commissioner to administer the Motor Carrier Employer Amnesty Program established by Section 2750.8 of the…
   • § 1162 Commercial drivers who are classified as employees pursuant to a settlement agreement shall be eligible to receive a refund of elective coverage contributions…
   • § 1164 The department may promulgate regulations and take any other actions necessary or appropriate to implement this article and further its participation in the…
10. ARTICLE 9. Refunds and Overpayments §§ 1176–1185 · 13 sections

    • § 1176 If, by reason of an employee receiving wages from more than one employer during any calendar year, the wages received by him or her during such year exceed the…
    • § 1176.5 (a) Except as provided by subdivision (c) of this section, refunds and credits under Section 1176 shall be claimed pursuant to Section 17061 of the Revenue and…
    • § 1177 Except as provided by subdivision (b) of Section 1178, if the director determines that any amount of contributions, penalty or interest has been erroneously or…
    • § 1177.5 (a) If the director determines that an overpayment has been made to the department by an employing unit or the School Employees Fund because of a reason…
    • § 1178 (a) A claim for refund or credit may be filed with the director for any overpayment including, but not limited to, amounts paid subsequent to the filing for…
    • § 1179 Every claim for refund or credit shall be in writing and shall state the specific grounds upon which the claim is founded. A waiver of any demand against the…
    • § 1179.5 If an employing unit pays the amount of contributions, penalties, and interest assessed under Article 8 (commencing with Section 1126) of Chapter 4 of Part 1…
    • § 1180 The director shall give notice pursuant to Section 1206 to the claimant whenever he or she denies any claim for refund or credit in whole or in part.
    • § 1180.1 No claim for refund of amounts paid pursuant to Section 1870 may be filed.
    • § 1180.5 (a) If the director finds that a claim for refund or credit or portion thereof, including a claim deemed made and denied pursuant to subdivision (a) of Section…
    • § 1181 Interest shall be allowed and paid only to the extent that interest and penalties collected under this division are available therefor upon any overpayment of…
    • § 1184 If any refund or portion thereof is erroneously made, the director shall assess that amount to the employing unit or other person to whom the refund was made,…
    • § 1185 The director, in collaboration with the Franchise Tax Board, shall do all of the following: (a) Identify taxpayers who have overpaid disability insurance…
11. ARTICLE 10. Notice § 1206 · 1 section

    • § 1206 A notice given under this chapter by the director, an administrative law judge, or the appeals board: (a) May be served personally or by mail, except that…
12. ARTICLE 11. Administrative Appellate Review §§ 1221–1224 · 4 sections

    • § 1221 (a) Within 10 working days of notice of an assessment pursuant to Section 1137, the employer may file a petition for reassessment of the jeopardy assessment…
    • § 1222 Within 30 days of service of any notice of assessment or denial of claim for refund or credit under Section 803, 821, or 991, or of any notice under Sections…
    • § 1223 If any petition is filed under this article within the time and meeting requirements prescribed, an administrative law judge shall review the matter and, if…
    • § 1224 (a) The petitioner or the director may, within 30 days after the service of notice of an administrative law judge’s decision under this article, file an appeal…
13. ARTICLE 11.5. Taxpayer’s Rights §§ 1231–1237 · 4 sections

    • § 1231 (a) The department shall develop and implement a taxpayer education and information program directed at, but not limited to, the following: (1) Taxpayer or…
    • § 1233 (a) If an employing unit’s failure to make a timely return or payment is due to the person’s reasonable reliance on written advice from the department, the…
    • § 1236 Any civil employment tax matter dispute arising under Article 8 (commencing with Section 1126), Article 9 (commencing with Section 1176), or Article 11…
    • § 1237 (a) No business entity shall discharge or otherwise discriminate against any person because he or she has sought information from the department concerning his…
14. ARTICLE 12. Judicial Review §§ 1241–1243 · 3 sections

    • § 1241 (a) No suit or proceeding shall be maintained in any court for the recovery of any amount of contributions, interest or penalties alleged to have been…
    • § 1242 If, in any action authorized by Section 1241, judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any contributions,…
    • § 1243 A decision of the appeals board on an appeal from a denial of a protest under Section 1034 or on an appeal from a denial or granting of an application for…