BILL NUMBER: AB 1845 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Solorio
FEBRUARY 22, 2012
An act to amend Section Sections 1030,
1088.5, 1329.1, 1375.1 , 3701 , 4701, 13021,
and 13021.5 of , and to add Section 1026.1 to, the
Unemployment Insurance Code, relating to unemployment
compensation insurance , and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1845, as amended, Solorio. Unemployment compensation benefits:
overpayment assessments. assessments:
termination: income tax withholding.
Existing law requires the Director of Employment Development to
credit to each employer reserve account benefit overpayments
collected in the 4 quarters prior to the computation date.
This bill would prohibit the director from crediting an employer
reserve account for benefit overpayments collected if the employer
fails to respond timely or adequately to claim notifications from the
Employment Development Department for a claim that was subsequently
overpaid and establishes a pattern of failing to respond timely or
adequately to requests from the department for information relating
to unemployment insurance claims.
Existing law requires each employer to file with the Employment
Development Department a report on new employees hired in this state
that the employer anticipates paying wages.
This bill would include in that report the hiring of an employee
previously employed by that employer, but who has not been employed
by that employer for at least 60 consecutive days, but would not
include in that report the hiring of an employee previously employed
by that employer less than 60 consecutive days prior to the rehiring.
Existing law allows an employer that is entitled to receive notice
of the filing of a new or additional claim for unemployment benefits
to submit to the Employment Development Department facts explaining
the reasons for the claimant leaving the employer's employ; however,
the employer is restricted to providing reasons only from a specified
list that the department will use to determine the cause of
termination. Existing law also allows a base period employer that is
not entitled to receive notice of the filing of a new or additional
claim for unemployment benefits, but is entitled to notice of
computation, to submit to the department facts explaining the reasons
for the claimant leaving the employer's employ; however, the
employer is restricted to providing reasons only from a specified
list that the department will use to determine the cause of
termination.
This bill would expand these lists to include as a reason, the
claimant leaving the employer's employ for a substantially better
job.
Existing law allows an employer that is entitled to receive notice
of the filing of a primary claim or additional claim for extended
unemployment compensation benefits or federal-state extended benefits
to submit to the Employment Development Department any facts
explaining the reason for the claimant leaving the employer's employ;
however, the employer is restricted to providing reasons only from a
specified list that the department will use to determine the cause
of termination.
This bill would expand these lists to include the claimant leaving
the employer's employ for reason of a substantially better job or to
protect his or her family or himself or herself from domestic
violence abuse.
Existing law provides that a claim for unemployment compensation
benefits may be canceled if the individual has not been deemed
ineligible for unemployment compensation benefits, has not been
overpaid unemployment compensation benefits, and has not collected
unemployment compensation benefits.
This bill would, in order to cancel a claim for unemployment
compensation benefits, add an additional requirement that the
individual request to cancel the claim during the benefit year of
that claim or the extended duration period of that claim.
Existing law creates and defines the Benefit Audit Fund and
provides that assessments for overpaid unemployment compensation
benefits shall be deposited into this fund. Existing law creates the
Unemployment Fund as a continuously appropriated fund.
Existing law authorizes the Employment Development Department to
administer the federal-state unemployment insurance program and
provides for the payment of unemployment compensation benefits to
eligible individuals who are unemployed through no fault of their
own.
Federal law requires, on and after October 22, 2013, at the time a
state agency determines an erroneous payment from its unemployment
insurance fund was made to an individual due to fraud committed by
the individual, the assessment of a penalty on the individual in an
amount of not less than 15% of the amount of the erroneous payment,
and requires that assessment to be deposited into the unemployment
insurance fund of the state.
Under existing law, if the Director of Employment Development
finds that an individual has been overpaid unemployment compensation
benefits because he or she, for the purpose of obtaining those
benefits, either made a false statement or representation, with
actual knowledge of the falsity, or withheld a material fact, the
director is required to assess against the individual an amount equal
to 30% of the overpayment amount. Existing law requires the
assessments collected to be deposited in the Benefit Audit Fund.
This bill would require that assessments , for overpaid
unemployment compensation benefits, collected after October 21,
2013, for overpaid unemployment compensation benefits
be deposited into the Benefit Audit Fund and the
Unemployment Fund equally. By providing a new source of revenue for
the continuously appropriated Unemployment Fund, this bill would make
an appropriation.
Existing law requires employers to withhold income taxes each
calendar quarter, file a withholding report, a quarterly return, a
report of wages, and pay over the taxes so required to be withheld.
Existing law requires employers to remit the total amount of income
tax withheld within a specified number of banking days, and uses
banking days to determine when a payment is complete.
This bill would, under those provisions, on and after January 1,
2013, use business days to measure time instead of banking days, as
provided.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1026.1 is added to the
Unemployment Insurance Code , to read:
1026.1. Notwithstanding any other law, the director shall not
credit an employer reserve account for benefit overpayments collected
if an employer or an agent of the employer does both of the
following:
(a) Fails to respond timely or adequately to claim notifications
from the department for a claim that was subsequently overpaid.
(b) Establishes a pattern of failing to respond timely or
adequately to requests from the department for information relating
to unemployment insurance claims.
SEC. 2. Section 1030 of the
Unemployment Insurance Code is amended to read:
1030. (a) Any An employer
who 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 notice, submit to the department any
facts within its possession disclosing whether the claimant left the
employer's employ voluntarily and without good cause or left under
one of the following circumstances:
(1) The claimant was discharged from the employment for misconduct
connected with his or her work.
(2) The claimant's discharge or quitting from his or her most
recent employer was the result of an irresistible compulsion to use
or consume intoxicants including alcoholic beverages.
(3) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
(4) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to a place or to join him or her at a
place from which it is impractical to commute to the employment, and
to which a transfer of the claimant by the employer is not available.
(5) The claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse.
(6) The claimant left the employer's employ to take a
substantially better job.
The period during which the employer may submit these facts may be
extended by the director for good cause.
(b) Any A base period employer that
is not entitled under Section 1327 to receive notice of the filing of
a new or additional claim and is entitled under Section 1329 to
receive notice of computation may, within 15 days after mailing of
the notice of computation, submit to the department any facts within
its possession disclosing whether the claimant left the employer's
employ voluntarily and without good cause or left under one of the
following circumstances:
(1) The claimant was discharged from the employment for misconduct
connected with his or her work.
(2) The claimant was a student employed on a temporary basis and
whose employment began within, and ended with his or her leaving to
return to school at the close of, his or her vacation period.
(3) The claimant left the employer's employ to accompany his or
her spouse or domestic partner to a place or join him or her at a
place from which it is impractical to commute to the employment, and
to which a transfer of the claimant by the employer is not available.
(4) The claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse.
(5) The claimant left the employer's employ to take a
substantially better job.
The period during which the employer may submit these facts may be
extended by the director for good cause.
(c) The department shall consider these facts together with any
information in its possession. If the employer is entitled to a
ruling under subdivision (b) or to a determination under Section
1328, the department shall promptly notify the employer of its ruling
as to the cause of the termination of the claimant's employment. The
employer may appeal from a ruling or reconsidered ruling to an
administrative law judge within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling. The 20-day
period may be extended for good cause, which includes, but is not
limited to, mistake, inadvertence, surprise, or excusable neglect.
The director is an interested party to any an
appeal. The department may for good cause reconsider
any a ruling or reconsidered ruling within
either five days after the date an appeal to an administrative law
judge is filed or, if no an appeal is
not filed, within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling. However, a
ruling or reconsidered ruling that relates to a determination that is
reconsidered pursuant to subdivision (a) of Section 1332 may also be
reconsidered by the department within the time provided for
reconsideration of that determination.
(d) For purposes of this section only, if the claimant voluntarily
leaves the employer's employ without notification to the employer of
the reasons for the leaving, and if the employer submits all of the
facts within its possession concerning the leaving within the
applicable time period referred to in this section, the leaving is
presumed to be without good cause.
(e) An individual whose employment is terminated under the
compulsory retirement provisions of a collective bargaining agreement
to which the employer is a party shall not be deemed to have
voluntarily left his or her employment without good cause.
(f) For purposes of this section "spouse" includes a person to
whom marriage is imminent, and "domestic partner" includes a person
to whom a domestic partnership, as described in Section 297 of the
Family Code, is imminent.
SEC. 3. Section 1088.5 of the
Unemployment Insurance Code is amended to read:
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 provided for in subdivision (b)
on new employees.
(b) Each employer shall report the hiring of any
an employee who works in this state and to whom
the employer anticipates paying wages. The report shall include
the hiring of an employee previously employed by the employer, but
has not been employed by that employer for 60 or more
consecutive days prior to rehiring. The report shall not include the
hiring of an employee previously employed by that employer less than
60 consecutive days pr ior to rehiring.
(c) (1) This section shall not apply to any
a department, agency, or instrumentality of the United States.
(2) State agency employers shall not be required to report
employees performing intelligence or counterintelligence functions,
if the head of the agency has determined that reporting pursuant to
this section would endanger the safety of the employee or compromise
an ongoing investigation or intelligence mission.
(d) (1) Employers shall submit a report as described in paragraph
(4) within 20 days of hiring any employee whom the employer is
required to report pursuant to this section.
(2) Notwithstanding subdivision (a), employers transmitting
reports magnetically or electronically shall submit the report by two
monthly transmissions not less than 12 days and not more than 16
days apart.
(3) For purposes of this section, an employer that has employees
in two or more states and that transmits reports magnetically or
electronically may designate one state in which the employer has
employees to which the employer will transmit the report described in
paragraph (4). Any employer that transmits reports pursuant to this
paragraph shall notify the Secretary of Health and Human Services in
writing as to which state the employer designates for the purpose of
sending reports.
(4) The report shall contain the following:
(A) The name, address, and social security number of the
employees.
(B) The employer's name, address, state employer identification
number (if one has been issued), and identifying number assigned to
the employer under Section 6109 of the Internal Revenue Code of 1986.
(C) The first date the employee worked.
(5) Employers may report pursuant to this section by submitting a
copy of the employee's W-4 form, a form provided by the department,
or any other hiring document transmitted by first-class mail,
magnetically, or electronically.
(e) For each failure to report the hiring of an employee, as
required and within the time required by this section, unless the
failure is due to good cause, the department may assess a penalty of
twenty-four dollars ($24), or four hundred ninety dollars ($490) if
the failure is the result of conspiracy between the employer and
employee not to supply the required report or to supply a false or
incomplete report.
(f) Information collected pursuant to this section may be used for
the following purposes:
(1) Administration of this code.
(2) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support obligations.
(3) Administration of employment security and workers'
compensation programs.
(4) Providing employer or employee information to the Franchise
Tax Board and the State Board of Equalization for the purpose of tax
or fee enforcement.
(5) Verification of eligibility of applicants for, or recipients
of, the public assistance programs listed in Section 1320b-7(b) of
Title 42 of the United States Code.
(g) For purposes of this section, "employer" includes a labor
union hiring hall.
(h) This section shall become operative on July 1, 1998.
SEC. 4. Section 1329.1 of the
Unemployment Insurance Code is amended to read:
1329.1. A claim for unemployment compensation benefits may be
canceled if all of the following apply:
(a) The individual has not been deemed ineligible for unemployment
compensation benefits.
(b) The individual has not been overpaid unemployment compensation
benefits.
(c) The individual has not collected unemployment compensation
benefits.
(d) The individual requests to cancel the claim during the benefit
year of that claim, or in the case of a claim for federal-state
extended duration benefits, during the extended duration period of
that claim.
SECTION 1. SEC. 5. Section 1375.1 of
the Unemployment Insurance Code is amended to read:
1375.1. (a) If the director finds that an individual has been
overpaid unemployment compensation benefits because he or she
willfully, for the purpose of obtaining unemployment compensation
benefits, either made a false statement or representation, with
actual knowledge of the falsity thereof, or withheld a material fact,
the director shall assess against the individual an amount equal to
30 percent of the overpayment amount. Assessments collected under
this section, on or before October 21, 2013, shall be deposited in
the Benefit Audit Fund.
(b) After October 21, 2013, assessments collected under
subdivision (a) shall be deposited as follows:
(1) Fifty percent in the Benefit Audit Fund.
(2) Fifty percent in the Unemployment Fund.
SEC. 6. Section 3701 of the
Unemployment Insurance Code is amended to read:
3701. (a) (1) Any An employer
who that is entitled under Section 3654
to notice of the filing of a primary claim or additional claim and
who that , within 10 days after mailing
of the notice, submits to the department any facts within its
possession disclosing whether the exhaustee left the most recent
employment with the employer voluntarily and without good cause or
was discharged from the employment for misconduct connected with his
or her work, or whether the claimant was a student employed on a
temporary basis and whose employment began within, and ended with his
or her leaving to return to school at the close of, his or her
vacation period, or whether the claimant left the employer's employ
to accompany his or her spouse or domestic partner to a place or join
him or her at a place from which it is impractical to commute to the
employment, and to which a transfer of the claimant by the employer
is not available , or whether the claimant's discharge or
quit from his or her most recent employer was the result of an
irresistible compulsion to use or consume intoxicants including
alcoholic beverages, or whether the claima nt left
the employer's employ to protect his or her family or himself or
herself from domestic violence abuse, or whether the claimant left
the employer's employ to take a substantially better job, shall
be entitled to a ruling as prescribed by this section. The period
during which the employer may submit these facts may be extended by
the director for good cause.
(2) For purposes of this section, "spouse" includes a person to
whom marriage is imminent, and "domestic partner" includes a person
to whom a domestic partnership, as described in Section 297 of the
Family Code, is imminent.
(b) The department shall consider these facts together with any
information in its possession. If the employer is entitled to a
determination pursuant to Section 3655, the department shall promptly
notify the employer of its ruling as to the cause of the termination
of the exhaustee's most recent employment. The employer may appeal
from a ruling or reconsidered ruling to an administrative law judge
within 20 days after mailing or personal service of notice of the
ruling or reconsidered ruling. The 20-day period may be extended for
good cause, which shall include, but not be limited to, mistake,
inadvertence, surprise, or excusable neglect. The director shall be
an interested party to any an appeal.
The department may for good cause reconsider any
a ruling or reconsidered ruling within either five days
after the date an appeal to an administrative law judge is filed or,
if no an appeal is not
filed, within 20 days after mailing or personal service of notice of
the ruling or reconsidered ruling, except that any
a ruling or reconsidered ruling which related to a
determination that is reconsidered pursuant to subdivision (a) of
Section 1332 may also be reconsidered by the department within the
time provided for reconsideration of that determination.
(c) For purposes of this section only, if the claimant voluntarily
leaves the employer's employ without notification to the employer of
the reasons therefor, and if the employer submits all of the facts
within its possession concerning the leaving within the applicable
time period referred to in this section, the leaving shall be
presumed to be without good cause.
(d) An individual whose employment is terminated under the
compulsory retirement provisions of a collective bargaining agreement
to which the employer is a party shall not be deemed to have
voluntarily left his or her employment without good cause.
(e) Rulings under this section shall have the effect prescribed by
Section 1032.
SEC. 7. Section 4701 of the
Unemployment Insurance Code is amended to read:
4701. (a) (1) Any An employer
who that is entitled under Section 4654
to notice of the filing of an application or additional claim and
who, within 10 days after mailing of the notice, submits to the
department any facts within its possession disclosing whether the
individual left the most recent employment with the employer
voluntarily and without good cause or was discharged from the
employment for misconduct connected with his or her work, or whether
the claimant was a student employed on a temporary basis and whose
employment began within, and ended with his or her leaving to return
to school at the close of, his or her vacation period, or whether the
claimant left the employer's employ to accompany his or her spouse
or domestic partner to a place or to join him or her at a place from
which it is impractical to commute to the employment, and to which a
transfer of the claimant by the employer is not available ,
or whether the claimant's discharge or quit from his or her
most recent employer was the result of an irresistible compulsion to
use or consume intoxicants including alcoholic beverages, or
whether the claimant left the employer's employ to protect his or her
family or himself or herself from domestic violence abuse, or
whether the claimant left the employer's employ to take a
substantially better job, shall be entitled to a ruling as
prescribed by this section. The period during which the employer may
submit these facts may be extended by the director for good cause.
(2) For purposes of this section, "spouse" includes a person to
whom marriage is imminent, and "domestic partner" includes a person
to whom a domestic partnership, as described in Section 297 of the
Family Code, is imminent.
(b) The department shall consider the facts together with any
information in its possession. If the employer is entitled to a
determination pursuant to Section 4655, the department shall promptly
issue to the employer its ruling as to the cause of the termination
of the individual's most recent employment. The employer may appeal
from a ruling or reconsidered ruling to an administrative law judge
within 20 days after mailing or personal service of notice of the
ruling or reconsidered ruling. The 20-day period may be extended for
good cause, which shall include, but not be limited to, mistake,
inadvertence, surprise, or excusable neglect. The director shall be
an interested party to any an appeal.
The department may for good cause reconsider any
a ruling or reconsidered ruling within either five days
after the date an appeal to an administrative law judge is filed or,
if no appeal is filed, within 20 days after mailing or personal
service of notice of the ruling or reconsidered ruling, except that
any a ruling or reconsidered ruling
that relates to a determination that is reconsidered pursuant to
subdivision (a) of Section 1332 may also be reconsidered by the
department within the time provided for reconsideration of that
determination.
(c) For purposes of this section only, if the claimant voluntarily
leaves the employer's employ without notification to the employer of
the reasons therefor, and if the employer submits all of the facts
within its possession concerning the leaving within the applicable
time period referred to in this section, the leaving shall be
presumed to be without good cause.
(d) An individual whose employment is terminated under the
compulsory retirement provisions of a collective bargaining agreement
to which the employer is a party shall not be deemed to have
voluntarily left his or her employment without good cause.
(e) Rulings under this section shall have the effect prescribed by
Section 1032.
SEC. 8. Section 13021 of the
Unemployment Insurance Code is amended to read:
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 business 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 Account 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
to 250
7 percent:
Less than 7 percent, but greater than
or equal
to 400
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 described 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 described 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 business 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 business day
following the date the transfer is initiated. If settlement to the
state's demand account does not occur on or before the
banking business 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 described 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 business
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 A 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 An 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 and penalties shall not
be assessed against any an employer
who that 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 An employer required to
withhold any tax and who that 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.
(l) The changes made to this section by the act adding this
subdivision shall apply on and after January 1, 2013.
SEC. 9. Section 13021.5 of the
Unemployment Insurance Code is amended to read:
13021.5. (a) "Electronic funds transfer" means any
a 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 a
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 a
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 "Business day" means
any day other than a Saturday, Sunday, or banking
legal holiday as recognized by the Internal Revenue
Service , statewide legal holiday as recognized by the State of
California pursuant to Section 6700 of the Government Code, or a day
in which the department is closed pursuant to Section 12b of the Code
of Civil Procedure .
(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.
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