SECTIONS 1110-1119

1110.  (a) Employer contributions required under Sections 976 and976.6, the amount of benefits received by any individual pursuant tothis part that is deducted from an award or settlement made by theemployer under the provisions of Section 1382, and, except asprovided by subdivision (b) of this section, worker contributionsrequired under Section 984 are due and payable on the first day ofthe calendar month following the close of each calendar quarter andshall become delinquent if not paid on or before the last day of thatmonth. (b) Worker contributions required under Section 984 are due andpayable at the same time and by the same method as amounts requiredto be withheld under Section 13020 are paid to the departmentpursuant to Section 13021, regardless of the amount of accumulatedunpaid liability for worker contributions. (c) Employer contributions submitted pursuant to Section 976.5shall be paid on or before the last working day of March of thecalendar year to which the reduced contribution rate would beapplicable. Any employer whose eligibility for an unemploymentinsurance contribution rate determination is redetermined to makethat employer eligible to submit voluntary unemployment insurancecontributions in accordance with Section 976.5, may submit avoluntary unemployment insurance contribution within 30 days of thedate of notification of the redetermination. (d) Except as provided in subdivision (e), any employer describedin Sections 682 and 684 may elect to report and pay employercontributions required under Sections 976 and 976.6, and workercontributions required under Section 984, annually. All contributionsare due and payable on the first day of January following the closeof the prior calendar year and shall become delinquent if not paid onor before the last day of that month. An election under thissubdivision shall be effective the first day of the calendar year inwhich it is approved by the department. An election under thissubdivision may not be approved if the employer has an outstandingreturn or report delinquency on the records of the department, or anunpaid amount owed to the department, that is not the subject of atimely petition for reassessment pending before the appeals board atthe time the election is filed. (e) Any employer described in Sections 682 and 684 who pays morethan twenty thousand dollars ($20,000) in wages annually, shall notbe entitled to the election allowed in subdivision (d). If at anytime during the year the total wages paid by an employer electing tofile under subdivision (d) exceeds twenty thousand dollars ($20,000),the election shall be terminated at the close of that calendarquarter. In addition to the report of wages due for that quarter, theemployer shall file a return and pay any contributions due for thatportion of the year during which the election was in effect, andshall 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 byelectronic funds transfer, as defined in Section 13021.5.Contributions submitted by electronic funds transfer shall be deemedcomplete in accordance with paragraph (4) of subdivision (e) ofSection 13021.1110.1.  (a) Notwithstanding any other provision of law, thedirector shall allocate any payment to the department relating toliability for contributions, withheld personal income tax, penaltyand interest, in accordance with any designation made by the payer ator before the time the payment is made to the department. (b) Notwithstanding any other provision of law, if a payer, at orbefore the time a payment is made to the department, does notdesignate an obligation to which the payment is to be applied, thedirector shall allocate the payment in the following order ofpriority: (1) Employer contributions required under Sections 976 and 976.6,worker contributions, and withheld personal income tax, in proportionto the aggregate amount of such employer contributions, workercontributions, and withheld personal income tax due. (2) Penalties and interest due under this division, and penaltiesand interest due based upon withheld personal income tax. (c) The director may apply the following standards in making anyallocation under this section: (1) First priority may be given to the extinction of obligationsdue at the time of payment with respect to which a lien has not beenrecorded, in the order inverse to that in which the obligation becamedue. (2) Second priority may be given to the extinction of obligationsdue at the time of payment with respect to which a lien has beenrecorded. If more than one lien has been recorded, the obligationscovered by the most recent lien recorded may be extinguished in fullbefore any payment is allocated to obligations covered by the nextprior lien recorded.1110.6.  Notwithstanding the provisions of Section 1110, wheneverthe liability of an employer for contributions under this divisionarises under the terms of a written contract in which such employerhas agreed, for the benefit of another party to such contract, toassume ultimate liability for contributions under this division inthe event of the default in payment thereof by any other employeraffected by such contract, such contributions shall not becomedelinquent and no penalties or interest prescribed by this chaptershall commence to accrue with respect to such contracting employer,until after the 30th day following the date of mailing or service ofnotice upon him, by the director, of the default of any such otheremployer.1111.  The director for good cause may extend for not to exceed 60days the time for making a return or report or paying without penaltyany amount required to be paid under this division. Any employer towhom an extension is granted and who pays the amount required withinthe period for which the extension is granted shall pay, in additionto the contributions, interest at the adjusted annual rate and by themethod established pursuant to Section 19521 of the Revenue andTaxation Code from the date on which the payment would have beendelinquent without the extension until the date of payment.1111.5.  If the Governor declares a state of emergency, the directormay extend the time requirements for filing returns or reportspursuant to Section 1088 and the time requirement for payment ofemployer and worker contributions pursuant to Section 1110. Theextension granted by the director pursuant to this section shallapply only to employers prevented by the conditions giving rise tothe 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 anycontributions required of him or her or of his or her workers, exceptamounts assessed under Article 8 of this chapter, within the timerequired shall pay a penalty of 10 percent of the amount of thosecontributions. (b) Any employer required to remit payments by electronic fundstransfer pursuant to Section 13021, who without good cause remitsthose amounts by means other than electronic funds transfer shall paya penalty of 10 percent of the amount of those contributions.1112.5.  (a) Any employer who without good cause fails to file thereturn and reports required by subdivision (a) of Section 1088 andsubdivision (a) of Section 13021 within 60 days of the time requiredunder subdivision (a) of Section 1110 shall pay a penalty of 10percent of the amount of contributions and personal income taxwithholding required by this report. This penalty shall be inaddition to the penalties required by Sections 1112 and 1126. (b) For purposes of subdivision (a), the amount of contributionsand personal income tax required by the report of contributions shallbe reduced by the amount of any contributions and personal incometax paid on or before the prescribed payment dates.1113.  Any employer who fails to pay any contributions required ofhim or of his workers, except amounts assessed under Article 8(commencing with Section 1126), within the time required shall becomeliable for interest on such contributions at the adjusted annualrate and by the method established pursuant to Section 19521 of theRevenue and Taxation Code from and after the date of delinquencyuntil paid.1113.1.  An employer who, through an error caused by excusableneglect, makes an underpayment of the amount due on a report ofcontributions pursuant to subdivision (b) of Section 1088 shall notbe liable for penalty or interest under Sections 1112, 1113, 1127 or1129 if proper adjustment is made at the time of the filing of thequarterly report of contributions and quarterly return, for the samecalendar quarter under subdivision (a) of Section 1088 and anexplanation of the error is attached to the report or return.1114.  (a) Any employer who, without good cause, fails to filewithin 15 days after service by the director of notice pursuant toSection 1206 of a specific written demand therefor, a report of wagesof each of his or her workers required by this division, shall payin addition to other amounts required, for each unreported wage itema penalty of ten dollars ($10). (b) Any employer required by this division to file a report ofwages of each of his or her workers on magnetic media as prescribedby subdivision (f) of Section 1088, who, without good cause, insteadfiles a report of wages on paper or in another form, shall pay inaddition to other amounts required, for each wage item a penalty often dollars ($10).1115.  (a) If the director finds that the collection of anycontributions will be jeopardized in any case where an employing unitis insolvent, or is delinquent in a substantial amount ofcontributions due under this division, or is about to discontinuebusiness at any of its known places of business, or the business isof a temporary or seasonal nature, the director may, upon giving theemploying unit 10 days' notice pursuant to Section 1206: (1) Require payment of contributions with respect to wages paidfrom the beginning date of the calendar quarter in which notice isgiven to the date designated in the notice. (2) Require payment of contributions for reporting periods lessthan calendar quarters. (b) As used in this section "reporting period" means that periodless than a calendar quarter which is established by the director. (c) Contributions required under subdivision (a)(1) of thissection are due and payable on the date designated in the notice andshall become delinquent if not paid within 10 days of the due date. (d) Contributions required under subdivision (a)(2) of thissection are due and payable on the first day of the reporting periodfollowing the close of each reporting period and shall becomedelinquent if not paid within 10 days of the due date. (e) The employing unit shall file within the time required forpayment of contributions under this section a report or return asrequired by Section 1088, in the form and containing the informationthat the director prescribes.1116.  (a) (1) Every employing unit except a domestic or foreigncorporation or a domestic or foreign limited liability company shall,within 10 days of quitting business, file with the director a finalreturn and report of wages of its workers, in such form andcontaining such information as the director prescribes. (2) Every domestic corporation and domestic limited liabilitycompany shall, within 10 days of quitting business or within 10 daysof the commencement of proceedings to windup its affairs andvoluntarily dissolve, whichever expires the earlier, file with thedirector a return and a report of wages of its workers, in such formand containing such information as the director prescribes. (3) Every foreign corporation and foreign limited liabilitycompany shall, within 10 days of quitting business or within 10 daysof the surrender of its right to engage in business of this state inaccordance with Section 2112 and subdivision (d) of Section 2114 ofthe Corporations Code for foreign corporations or Section 17455 ofthe Corporations Code for foreign limited liability companies,whichever expires the earlier, file with the director a final returnand report of wages of its workers, in such form and containing suchinformation as the director prescribes. (4) As used in this section, "quitting business" does not includeany change in the form or membership of an employing unit if beforeand after such change 50 percent or more of the control of managementis held by the same individual, or is held by an individual beforedeath and after the individual's death by the individual's estate orheirs. (b) Contributions with respect to a return required undersubdivision (a) are due and payable on the first day of theapplicable 10-day period established pursuant to subdivision (a) andshall become delinquent if not paid within 10 days of the due date. (c) The director for good cause may extend for not to exceed 30days the time for making a return or paying without penalty orinterest any amount required to be paid under this section.1117.  If any employer fails to file the annual reconciliationreturn described in subdivision (e) of Section 1088 or subdivision(j) of Section 13021 on or before 30 days after notice has been givento the employer of his or her failure to file, unless the failure isdue to good cause, the employer, in addition to any other penaltiesimposed by this code, shall pay a penalty of one thousand dollars($1,000), or 5 percent of the employer and worker contributionsrequired to be reconciled by subdivision (e) of Section 1088,whichever is less.1118.  (a) This section applies only to employers who employindividuals to perform domestic service, as described in Sections 682and 684. (b) Effective July 1, 1997, notwithstanding Section 1088, adomestic service employer shall be authorized to file the report ofwages required by Section 1088 by telephone. This does not apply tothe filing of Internal Revenue Service Form W-2. (c) The department shall notify all domestic service employers ofthe availability of the telephone reporting system. A domesticservice employer shall be required to make an election to report bytelephone or by mail. After a domestic service employer elects toreport by telephone, the employer is required to report in that modefor the remainder of the calendar year. If a domestic serviceemployer makes this election in the second or subsequent quarter of acalendar year, the employer shall be required to report by telephonefor the remainder of the calendar year and for all four quarters ofthe subsequent calendar year. A domestic service employer who haselected to report by telephone and who is eligible under thissubdivision 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 berequired to provide the department with the employer's accountnumber, the social security numbers of all employees, and the wagespaid to each employee for the reporting period. The department mayrequest additional information in order to determine the amount ofwages that are taxable. (e) The department shall compute the contributions owed based uponthe wage information reported by the domestic service employer. (f) A domestic service employer reporting by telephone shall bepermitted to pay the contributions owed by credit card or chargecard. 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 notpay by credit card or charge card, the department shall advise theemployer of the due date for the payment and of any penalties andinterest that will be charged if a payment is late.1119.  The director shall notify the United States Internal RevenueService and the United States Department of Labor of the failure ofany Indian tribe (as described by subsection (u) of Section 3306 ofTitle 26 of the United States Code) to make a payment of any amountrequired to be paid under this article within 90 days of the date ofa notice specifying the amount due. If the amount due is subsequentlypaid by the Indian tribe, the director shall notify the UnitedStates Internal Revenue Service and the United States Department ofLabor of the satisfaction of the liability.