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 calendar year with respect to wages paid for
employment. The contributions are due and shall be paid to the
department for the Unemployment Fund by each employer in accordance
with this division and shall not be deducted in whole or in part from
the wages of individuals in his employ.
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 subdivision (c) is applicable, may submit a
voluntary unemployment insurance contribution for the purpose of
redetermining its unemployment insurance contribution rate. No
redetermination of a contribution rate shall be made unless the
voluntary contribution is submitted as required in subdivision (c) of
Section 1110. No redetermination shall reduce an employer's
unemployment insurance contribution rate by more than three rates as
provided in Section 977.
(b) This section shall not be operative in calendar years in which
Contribution Rate Schedules E and F in Section 977 are in effect, or
in calendar years to which the emergency solvency surcharge provided
in Section 977.5 is in effect.
(c) This section does not apply to any of the following:
(1) An employer not eligible for a contribution rate other than
that provided pursuant to Section 982 or subdivision (c) of Section
977.
(2) An employer with a negative reserve account balance on the
computation date.
(3) An employer who was notified prior to September 1 of any
unpaid amount owed to the department which is not the subject of a
timely petition for reassessment pending before the appeals board on
September 30 preceding the year to which a contribution rate is
applicable.
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 that has elected an alternate
method of financing its liability for unemployment compensation
benefits pursuant to Article 5 (commencing with Section 801), or
Article 6 (commencing with Section 821) of Chapter 3, shall pay into
the Employment Training Fund contributions at the rate of 0.1 percent
of wages specified in Section 930. The contributions shall be
collected in the same manner and at the same time as any
contributions required under Sections 977 and 977.5.
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 employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 her average base payroll which
appears on any line in column 1 of the following table, but is less
than that percentage of his or her average base payroll which appears
on the same line in column 2 of that table, his or her contribution
rate shall be the figure appearing on that same line in the
appropriate schedule, as defined in subdivision (b), which shall be a
percentage of the wages specified in Section 930.
Reserve Contribution
Ratio Rate
Column Column Schedules
Line 1 2 AA A B C D E F
less than
-20
-20 to
-18
01 -18 to 5.4 5.4 5.4 5.4 5.4 5.4 5.4
02 -16 5.2 5.3 5.4 5.4 5.4 5.4 5.4
03 -16 to 5.1 5.2 5.4 5.4 5.4 5.4 5.4
04 -14 5.0 5.1 5.3 5.4 5.4 5.4 5.4
05 -14 to 4.9 5.0 5.3 5.4 5.4 5.4 5.4
06 -12 4.8 4.9 5.2 5.4 5.4 5.4 5.4
07 -12 to 4.7 4.8 5.1 5.3 5.4 5.4 5.4
08 -11 4.6 4.7 5.1 5.3 5.4 5.4 5.4
09 -11 to 4.5 4.6 4.9 5.2 5.4 5.4 5.4
10 -10 4.4 4.5 4.8 5.1 5.3 5.4 5.4
-10 to
-09
-09 to
-08
-08 to -07
-07 to
-06
11 -06 to 4.3 4.4 4.7 5.0 5.3 5.4 5.4
12 -05 4.2 4.3 4.6 4.9 5.2 5.4 5.4
13 -05 to 4.1 4.2 4.5 4.8 5.1 5.3 5.4
14 -04 4.0 4.1 4.4 4.7 5.0 5.3 5.4
15 -04 to 3.9 4.0 4.3 4.6 4.9 5.2 5.4
-03
-03 to -02
-02 to
-01
16 -01 to 3.8 3.9 4.2 4.5 4.8 5.1 5.4
17 00 3.7 3.8 4.1 4.4 4.7 5.0 5.4
18 00 to 3.4 3.6 3.9 4.2 4.5 4.8 5.1
19 01 3.2 3.4 3.7 4.0 4.3 4.6 4.9
20 01 to 3.0 3.2 3.5 3.8 4.1 4.4 4.7
02
02 to 03
03 to
04
21 04 to 2.8 3.0 3.3 3.6 3.9 4.2 4.5
22 05 2.6 2.8 3.1 3.4 3.7 4.0 4.3
23 05 to 2.4 2.6 2.9 3.2 3.5 3.8 4.1
24 06 2.2 2.4 2.7 3.0 3.3 3.6 3.9
25 06 to 2.0 2.2 2.5 2.8 3.1 3.4 3.7
07
07 to 08
08 to
09
26 09 to 1.8 2.0 2.3 2.6 2.9 3.2 3.5
27 10 1.6 1.8 2.1 2.4 2.7 3.0 3.3
28 10 to 1.4 1.6 1.9 2.2 2.5 2.8 3.1
29 11 1.2 1.4 1.7 2.0 2.3 2.6 2.9
30 11 to 1.0 1.2 1.5 1.8 2.1 2.4 2.7
12
12 to 13
13 to
31 14 0.8 1.0 1.3 1.6 1.9 2.2 2.5
32 14 to 0.7 0.9 1.1 1.4 1.7 2.0 2.3
33 15 0.6 0.8 1.0 1.2 1.5 1.8 2.1
34 15 to 0.5 0.7 0.9 1.1 1.3 1.6 1.9
16
16 to 17
17 to
35 18 0.4 0.6 0.8 1.0 1.2 1.4 1.7
36 18 to 0.3 0.5 0.7 0.9 1.1 1.3 1.5
37 19 0.2 0.4 0.6 0.8 1.0 1.2 1.4
38 19 to 0.1 0.3 0.5 0.7 0.9 1.1 1.3
20
20 or more
(b) (1) Whenever the balance in the Unemployment Fund on September
30 of any calendar year is greater than 1.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule AA.
(2) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.8 percent and greater
than 1.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule A.
(3) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.6 percent and greater
than 1.4 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule B.
(4) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.4 percent and greater
than 1.2 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule C.
(5) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.2 percent and greater
than 1.0 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule D.
(6) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.0 percent and greater
than or equal to 0.8 percent of the wages (as defined by Section
940) in employment subject to this part paid during the 12-month
period ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year
upon all wages with respect to employment at the rates specified in
Schedule E.
(7) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is less than 0.8 percent and greater than or
equal to 0.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule F.
(c) For each rating period beginning on or after January 1, 2005,
in which an employer obtains or attempts to obtain a more favorable
rate of contributions under this section due to deliberate ignorance,
reckless disregard, fraud, intent to evade, misrepresentation, or
willful nondisclosure, the director shall assign the maximum
contribution rate plus 2 percent for each applicable rating period,
the current rating period, and the subsequent rating period.
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 employment, subject to this part, paid
during the 12-month period ending on the computation date, employers
shall pay into the Unemployment Fund contributions for the succeeding
calendar year upon all wages with respect to employment at an
emergency solvency surcharge rate. The emergency solvency surcharge
rate shall be 1.15 times the rate the employer would have paid in
Schedule F of subdivision (a) of Section 977, rounded to the nearest
one-tenth of 1 percent.
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 schedules contained in Section
977 shall be in effect for that calendar year and whether the
emergency solvency surcharge pursuant to Section 977.5 shall be
added. The statement shall be a public record and shall be final and
binding for that calendar year. The statement shall include the
official tabulation of wages in subject employment made by the
department for the purpose of Sections 977 and 977.5, a summary of
the data upon which that tabulation was based, and the sources from
which those data were obtained, and shall further include a summary
of the data upon which the computation of the balance in the
Unemployment Fund was based, and their source. The director's action
under Sections 977, 977.5, and this section shall not constitute an
authorized regulation.
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 credited to this state's account in the
Unemployment Trust Fund pursuant to Section 903 of the federal Social
Security Act, as amended, which has been appropriated for expenses
of administration other than for capital assets, whether or not that
amount has been withdrawn from that fund.
(2) Any unexpended advance from the federal unemployment account
in the Unemployment Trust Fund received in accordance with Section
323 of this division and Title XII of the federal Social Security
Act, as amended.
(3) Any amount paid in advance into the Unemployment Fund by an
employer under any type of coverage pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
(4) Any amount paid in advance into the Unemployment Fund by the
federal government under any federal law that requires or permits
this state to pay benefits from the Unemployment Fund and provides
for advances by the federal government for reimbursement of all or
part of those benefits.
(b) In determining the balance in the Unemployment Fund for the
purpose of Sections 977 and 977.5, there shall also be excluded any
estimated or other contributions not legally due and payable with
respect to the final calendar quarter of the calendar year, except
any payment of contributions made under Sections 976.5 and 1137 and
except any payment of contributions by employers terminating business
during any calendar quarter.
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 unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when those benefits are based upon
wages in employment under any type of coverage pursuant to which
reimbursement of benefits is permitted or required in lieu of the
contributions required of employers, whether or not the director has
certified the benefits to the employer as due or payable.
(b) The unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when, and to the extent that, the
benefits are subject to reimbursement by the federal government under
any federal law that requires or permits this state to pay benefits
from the Unemployment Fund and provides for reimbursement by the
federal government of all or part of those benefits.
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 pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
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 his or her reserve account has been
subject to benefit charges during the period of 12 complete
consecutive calendar quarters ending on the computation date for that
rating period and he or she is qualified under Sections 977 and
977.5.
(b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 percent unless his or her reserve account has
been subject to benefit charges during the period of 12 complete
consecutive calendar months ending on the computation date and the
new employer is qualified under Sections 977 and 977.5.
(c) For the purposes of this section "new employer" means any of
the following:
(1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
(2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
(3) An employer whose reserve account has been canceled pursuant
to Section 1029.
(d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
(1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
(2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
(e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the provisions
of Sections 977 and 977.5, when the director makes a determination,
pursuant to Section 135.1 or 135.2, because of arrangements entered
into or business activities conducted between January 1, 1984, and
January 1, 1986.
(f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 Sections 926, 927, and 985. On or before October
31 of each calendar year, the director shall prepare a statement,
which shall be a public record, declaring the rate of worker
contributions for the calendar year and shall notify promptly all
employers of employees covered for disability insurance of the rate.
(2) (A) Except as provided in paragraph (3), the rate of worker
contributions for calendar year 1987 and for each subsequent calendar
year shall be 1.45 times the amount disbursed from the Disability
Fund during the 12-month period ending September 30 and immediately
preceding the calendar year for which the rate is to be effective,
less the amount in the Disability Fund on that September 30, with the
resulting figure divided by total wages paid pursuant to Sections
926, 927, and 985 during the same 12-month period, and then rounded
to the nearest one-tenth of 1 percent.
(B) The director shall increase the rate of worker contributions
by .08 percent for the 2004 and 2005 calendar years to cover the
initial cost of family temporary disability insurance benefits
provided in Chapter 7 (commencing with Section 3300) of Part 2.
(3) The rate of worker contributions shall not exceed 1.5 percent
or be less than 0.1 percent. The rate of worker contributions shall
not decrease from the rate in the previous year by more than
two-tenths of 1 percent.
(b) Worker contributions required under Sections 708 and 708.5
shall be at a rate determined by the director to reimburse the
Disability Fund for unemployment compensation disability benefits
paid and estimated to be paid to all employers and self-employed
individuals covered by those sections. On or before November 30th of
each calendar year, the director shall prepare a statement, which
shall be a public record, declaring the rate of contributions for the
succeeding calendar year for all employers and self-employed
individuals covered under Sections 708 and 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. The
rate shall be determined by dividing the estimated benefits and
administrative costs paid in the prior year by the product of the
annual remuneration deemed to have been received under Sections 708
and 708.5 and the estimated number of persons who were covered at any
time in the prior year. The resulting rate shall be rounded to the
next higher one-hundredth percentage point. The rate may also be
reduced or increased by a factor estimated to maintain as nearly as
practicable a cumulative zero balance in the funds contributed
pursuant to Sections 708 and 708.5. Estimates made pursuant to this
subdivision may be made on the basis of statistical sampling, or
another method determined by the director.
(c) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
(d) (1) Notwithstanding subdivision (a), and except as provided in
paragraph (2), the director may, at his or her discretion, increase
or decrease, by not to exceed 0.1 percent, the rate of worker
contributions determined pursuant to subdivision (a), up to a maximum
worker contribution rate of 1.5 percent, if he or she determines the
adjustment is necessary to reimburse the Disability Fund for
disability benefits paid or estimated to be paid to individuals
covered by this section or to prevent the accumulation of funds in
excess of those needed to maintain an adequate fund balance.
(2) Notwithstanding paragraph (1), for the 2004, 2005, and 2006
calendar years, the director may not decrease the rate of worker
contributions, regardless of whether the director determines that a
decrease is necessary to prevent the accumulation of funds in excess
of those needed to maintain the adequacy of the Disability Fund
during program implementation.
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 the rate of contributions of the
succeeding calendar year for all employers and self-employed
individuals covered under Section 708 or 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. For
calendar years 1994 to 1996, inclusive, worker contributions
required under Section 708 or 708.5 shall be at a rate determined by
the director to reimburse the Disability Fund for the sum of
estimated administrative costs due to those sections and unemployment
compensation disability benefits estimated to be paid to all
employers and self-employed individuals covered by those sections.
The rate shall be determined by dividing the sum of the benefits
expected to be paid in the following calendar year and the
administrative costs expected to be incurred under Section 708 or
708.5 during that calendar year by earnings estimated to be reported
under those sections for that same calendar year. The resulting rate
shall be rounded to the next higher one-hundredth percentage point.
This rate may also be reduced or increased by a factor estimated to
maintain as nearly as practicable a cumulative zero balance in funds
contributed pursuant to Section 708 or 708.5.
For calendar year 1997, and each calendar year thereafter, the
rate established each November 30 shall be determined by multiplying
the current year's rate by the ratio of 1.10 times the current year
disbursements divided by contributions for the same period, under
Sections 708 and 708.5. If in any calendar year the cumulative
balance of contributions minus disbursements equals or exceeds 20
percent of annual disbursements, the contribution rate for the
succeeding year shall be adjusted to a level necessary to maintain
revenues at no more than 20 percent over annual disbursements. If
legislation is enacted necessitating adjustments in the benefit
levels for employers and self-employed individuals covered under
Section 708 or 708.5, the rate may be adjusted by a factor estimated
to provide that funds contributed pursuant to Section 708 or 708.5
cover disbursements pursuant to these sections.
For the purpose of this subdivision, disbursements are defined as
the sum of unemployment compensation disability benefits paid to
employers and self-employed individuals covered under Section 708 or
708.5, plus administrative costs related to those sections. Estimates
made pursuant to this subdivision shall be available for public
inspection.
(b) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
985. 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 benefit for each calendar year specified in
Section 2655 multiplied by 13 and divided by 55 percent has been paid
to an individual by an employer, is paid to the individual by the
employer.
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,
withhold in trust the amount of his workers' contributions from their
wages at the time the wages are paid, shall show the deduction on
his payroll records, and shall furnish each worker with a statement
in writing showing the amount which has been deducted, in such form
and at such times as may be prescribed.
(2) Hold in trust the amount of his workers' contributions, at the
time their wages are paid, where he undertakes or agrees to pay
without deduction from the wages of his workers the amount of worker
contributions required of his workers under this division.
(b) Each employer shall transmit all such contributions withheld
or held in trust to the department for the Disability Fund, in
addition to his own contributions for the Unemployment Fund, pursuant
to authorized regulations.
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 whether or not he has deducted the
contributions from the workers' wages at the time they were paid, but
no employer shall be liable for worker contributions required on
behalf of himself or of any of his employees with respect to wages
paid while there is in effect at the time the wages were paid a rule
or regulation or interpretation of the director or of the department
that such wages were not subject to such contributions.
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 under the control of the employer, the
worker may furnish the employer, on or before the 10th day of the
following month, or, if the amounts are estimated, on or before the
last day of the month following the calendar quarter, an amount equal
to the excess.
(b) If the worker contributions required by Section 984 with
respect to cash tips and cash gratuities exceed the amount of worker
contributions that can be collected by the employer from the wages of
the worker, the excess shall be paid by the worker, except as
provided by Section 1088.6. The worker shall pay the excess to the
department within 30 days from his or her receipt of the written
statement furnished by his or her employer pursuant to Section
1088.6. If the worker fails to pay the excess within the time
required by this subdivision, the director may make an assessment for
the excess and shall give the worker a written notice of the
assessment. Article 8 (commencing with Section 1126) with respect to
the assessment of contributions and Chapter 7 (commencing with
Section 1701) with respect to the collection of contributions shall
apply to the recovery of amounts under this subdivision.
(c) The director may offset amounts assessed pursuant to
subdivision (b) against any refund payable to the worker under
Section 1176.5 or against any amount of disability benefits to which
he or she may become entitled under Part 2 (commencing with Section
2601) within any of the following periods:
(1) The current disability benefit period.
(2) One year from the beginning date of any disability benefit
period that begins during the three-year period next succeeding the
service of notice of the assessment.
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 employer's assets and shall be paid
to the director prior to the payment of any other claim against the
employer.
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 employees or group of employers,
shall be made public and available for public inspection but in no
case shall the amount of tax paid by any employee or employer, or
group of employees or group of employers, be disclosed to the public.
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 shall be increased to one cent ($0.01).
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 and without negligence on the part
of the employing unit to another state having an unemployment
compensation law, or with respect to wages on which contributions
computed under the Federal Unemployment Tax Act previously have been
paid in error and without negligence on the part of the employing
unit to an agency of the federal government, shall be deemed for the
purposes of this division to have been paid to the department at the
time of the erroneous payment to the other state or to the federal
agency, if payment is made to the department by the employing unit
within 30 days after the employing unit is given notice pursuant to
Section 1206 by the director of the determination that payment shall
be made to the department. The 30-day period for payment may be
extended by the director for good cause for a period not to exceed an
additional 90 days.
(b) Any contributions paid to the Unemployment Fund or Disability
Fund with respect to wages on which contributions computed under this
division previously have been paid in error and without negligence
on the part of the employing unit to an admitted disability insurer,
to trustees administering a voluntary plan for the employing unit, to
a self-insured plan of the employing unit, to another agency of this
state, or to an agency of the federal government shall be deemed,
solely to the extent of the amount of contributions previously paid
in error and without negligence, for the purposes of this division to
have been paid to the department at the time of the erroneous
payment to the admitted disability insurer, to trustees administering
a voluntary plan for the employing unit, to a self-insured plan of
the employing unit, to another agency of this state, or to the
federal agency, if payment is made to the department by the employing
unit within 30 days after the employing unit is given notice
pursuant to Section 1206 by the director of the determination that
payment shall be made to the department. The 30-day period for
payment may be extended by the director for good cause for a period
not to exceed an additional 90 days. As used in this subdivision
"paid" includes credits made to a self-insured plan of the employing
unit. With respect to payments by an employing unit to an admitted
disability insurer, to trustees administering a voluntary plan for
the employing unit, or to a self-insured plan of the employing unit,
this subdivision shall apply only if one or more of the following
conditions are met:
(1) At the time of payment the employing unit has or prior to the
time of payment had an approved voluntary plan with the recipient of
the payment.
(2) Prior to the time of payment the employing unit had applied to
the department for a voluntary plan which was subsequently approved
by the department.
(3) At the time of payment the employing unit is a subsidiary or
affiliate of an employing unit having an approved voluntary plan.
(4) At the time of payment the employing unit believed that a
voluntary plan had been acquired pursuant to Section 3254.5.
(c) If payment is not made within the 30-day period or within the
period for which an extension is granted, this section shall not
apply and Article 7 (commencing with Section 1110), Article 8
(commencing with Section 1126), and Chapter 7 (commencing with
Section 1701), with respect to the payment of reported contributions,
and the assessment and collection of contributions shall apply.
(d) If the director finds that the collection of any contributions
will be jeopardized by delay this section shall not apply and the
director may make a jeopardy assessment and collect the contributions
pursuant to Article 8 (commencing with Section 1126), and Chapter 7
(commencing with Section 1701).
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 amounting to 100 percent of such
tax on account of contributions paid under this division, then the
additional amount of contributions provided for by Section 993 shall
be required to be paid into the Unemployment Fund.
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 Unemployment Fund in addition to the
amounts required by other provisions of this division an amount equal
to five-tenths of 1 percent, or such other percentage as applies for
a calendar year pursuant to Section 6157 of the Internal Revenue
Code of 1954, of all wages paid by him or her in employment and
included in the measure of the contributions allowed as the credit
against the tax imposed by Section 3301 of the Federal Unemployment
Tax Act.
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 Social Security Act and Sections 3302,
3303, and 3304 of the Federal Unemployment Tax Act.
995. The department shall submit to the Legislature in May and
October of each year a report on the status of the Unemployment Fund
and the Unemployment Compensation Disability Fund. Each report shall
include both actual and forecasted information on the fund balances,
receipts, disbursements, claim data, tax rates, and employment
levels.
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 calendar year with respect to wages paid for
employment. The contributions are due and shall be paid to the
department for the Unemployment Fund by each employer in accordance
with this division and shall not be deducted in whole or in part from
the wages of individuals in his employ.
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 subdivision (c) is applicable, may submit a
voluntary unemployment insurance contribution for the purpose of
redetermining its unemployment insurance contribution rate. No
redetermination of a contribution rate shall be made unless the
voluntary contribution is submitted as required in subdivision (c) of
Section 1110. No redetermination shall reduce an employer's
unemployment insurance contribution rate by more than three rates as
provided in Section 977.
(b) This section shall not be operative in calendar years in which
Contribution Rate Schedules E and F in Section 977 are in effect, or
in calendar years to which the emergency solvency surcharge provided
in Section 977.5 is in effect.
(c) This section does not apply to any of the following:
(1) An employer not eligible for a contribution rate other than
that provided pursuant to Section 982 or subdivision (c) of Section
977.
(2) An employer with a negative reserve account balance on the
computation date.
(3) An employer who was notified prior to September 1 of any
unpaid amount owed to the department which is not the subject of a
timely petition for reassessment pending before the appeals board on
September 30 preceding the year to which a contribution rate is
applicable.
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 that has elected an alternate
method of financing its liability for unemployment compensation
benefits pursuant to Article 5 (commencing with Section 801), or
Article 6 (commencing with Section 821) of Chapter 3, shall pay into
the Employment Training Fund contributions at the rate of 0.1 percent
of wages specified in Section 930. The contributions shall be
collected in the same manner and at the same time as any
contributions required under Sections 977 and 977.5.
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 employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 her average base payroll which
appears on any line in column 1 of the following table, but is less
than that percentage of his or her average base payroll which appears
on the same line in column 2 of that table, his or her contribution
rate shall be the figure appearing on that same line in the
appropriate schedule, as defined in subdivision (b), which shall be a
percentage of the wages specified in Section 930.
Reserve Contribution
Ratio Rate
Column Column Schedules
Line 1 2 AA A B C D E F
less than
-20
-20 to
-18
01 -18 to 5.4 5.4 5.4 5.4 5.4 5.4 5.4
02 -16 5.2 5.3 5.4 5.4 5.4 5.4 5.4
03 -16 to 5.1 5.2 5.4 5.4 5.4 5.4 5.4
04 -14 5.0 5.1 5.3 5.4 5.4 5.4 5.4
05 -14 to 4.9 5.0 5.3 5.4 5.4 5.4 5.4
06 -12 4.8 4.9 5.2 5.4 5.4 5.4 5.4
07 -12 to 4.7 4.8 5.1 5.3 5.4 5.4 5.4
08 -11 4.6 4.7 5.1 5.3 5.4 5.4 5.4
09 -11 to 4.5 4.6 4.9 5.2 5.4 5.4 5.4
10 -10 4.4 4.5 4.8 5.1 5.3 5.4 5.4
-10 to
-09
-09 to
-08
-08 to -07
-07 to
-06
11 -06 to 4.3 4.4 4.7 5.0 5.3 5.4 5.4
12 -05 4.2 4.3 4.6 4.9 5.2 5.4 5.4
13 -05 to 4.1 4.2 4.5 4.8 5.1 5.3 5.4
14 -04 4.0 4.1 4.4 4.7 5.0 5.3 5.4
15 -04 to 3.9 4.0 4.3 4.6 4.9 5.2 5.4
-03
-03 to -02
-02 to
-01
16 -01 to 3.8 3.9 4.2 4.5 4.8 5.1 5.4
17 00 3.7 3.8 4.1 4.4 4.7 5.0 5.4
18 00 to 3.4 3.6 3.9 4.2 4.5 4.8 5.1
19 01 3.2 3.4 3.7 4.0 4.3 4.6 4.9
20 01 to 3.0 3.2 3.5 3.8 4.1 4.4 4.7
02
02 to 03
03 to
04
21 04 to 2.8 3.0 3.3 3.6 3.9 4.2 4.5
22 05 2.6 2.8 3.1 3.4 3.7 4.0 4.3
23 05 to 2.4 2.6 2.9 3.2 3.5 3.8 4.1
24 06 2.2 2.4 2.7 3.0 3.3 3.6 3.9
25 06 to 2.0 2.2 2.5 2.8 3.1 3.4 3.7
07
07 to 08
08 to
09
26 09 to 1.8 2.0 2.3 2.6 2.9 3.2 3.5
27 10 1.6 1.8 2.1 2.4 2.7 3.0 3.3
28 10 to 1.4 1.6 1.9 2.2 2.5 2.8 3.1
29 11 1.2 1.4 1.7 2.0 2.3 2.6 2.9
30 11 to 1.0 1.2 1.5 1.8 2.1 2.4 2.7
12
12 to 13
13 to
31 14 0.8 1.0 1.3 1.6 1.9 2.2 2.5
32 14 to 0.7 0.9 1.1 1.4 1.7 2.0 2.3
33 15 0.6 0.8 1.0 1.2 1.5 1.8 2.1
34 15 to 0.5 0.7 0.9 1.1 1.3 1.6 1.9
16
16 to 17
17 to
35 18 0.4 0.6 0.8 1.0 1.2 1.4 1.7
36 18 to 0.3 0.5 0.7 0.9 1.1 1.3 1.5
37 19 0.2 0.4 0.6 0.8 1.0 1.2 1.4
38 19 to 0.1 0.3 0.5 0.7 0.9 1.1 1.3
20
20 or more
(b) (1) Whenever the balance in the Unemployment Fund on September
30 of any calendar year is greater than 1.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule AA.
(2) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.8 percent and greater
than 1.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule A.
(3) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.6 percent and greater
than 1.4 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule B.
(4) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.4 percent and greater
than 1.2 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule C.
(5) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.2 percent and greater
than 1.0 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule D.
(6) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.0 percent and greater
than or equal to 0.8 percent of the wages (as defined by Section
940) in employment subject to this part paid during the 12-month
period ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year
upon all wages with respect to employment at the rates specified in
Schedule E.
(7) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is less than 0.8 percent and greater than or
equal to 0.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule F.
(c) For each rating period beginning on or after January 1, 2005,
in which an employer obtains or attempts to obtain a more favorable
rate of contributions under this section due to deliberate ignorance,
reckless disregard, fraud, intent to evade, misrepresentation, or
willful nondisclosure, the director shall assign the maximum
contribution rate plus 2 percent for each applicable rating period,
the current rating period, and the subsequent rating period.
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 employment, subject to this part, paid
during the 12-month period ending on the computation date, employers
shall pay into the Unemployment Fund contributions for the succeeding
calendar year upon all wages with respect to employment at an
emergency solvency surcharge rate. The emergency solvency surcharge
rate shall be 1.15 times the rate the employer would have paid in
Schedule F of subdivision (a) of Section 977, rounded to the nearest
one-tenth of 1 percent.
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 schedules contained in Section
977 shall be in effect for that calendar year and whether the
emergency solvency surcharge pursuant to Section 977.5 shall be
added. The statement shall be a public record and shall be final and
binding for that calendar year. The statement shall include the
official tabulation of wages in subject employment made by the
department for the purpose of Sections 977 and 977.5, a summary of
the data upon which that tabulation was based, and the sources from
which those data were obtained, and shall further include a summary
of the data upon which the computation of the balance in the
Unemployment Fund was based, and their source. The director's action
under Sections 977, 977.5, and this section shall not constitute an
authorized regulation.
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 credited to this state's account in the
Unemployment Trust Fund pursuant to Section 903 of the federal Social
Security Act, as amended, which has been appropriated for expenses
of administration other than for capital assets, whether or not that
amount has been withdrawn from that fund.
(2) Any unexpended advance from the federal unemployment account
in the Unemployment Trust Fund received in accordance with Section
323 of this division and Title XII of the federal Social Security
Act, as amended.
(3) Any amount paid in advance into the Unemployment Fund by an
employer under any type of coverage pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
(4) Any amount paid in advance into the Unemployment Fund by the
federal government under any federal law that requires or permits
this state to pay benefits from the Unemployment Fund and provides
for advances by the federal government for reimbursement of all or
part of those benefits.
(b) In determining the balance in the Unemployment Fund for the
purpose of Sections 977 and 977.5, there shall also be excluded any
estimated or other contributions not legally due and payable with
respect to the final calendar quarter of the calendar year, except
any payment of contributions made under Sections 976.5 and 1137 and
except any payment of contributions by employers terminating business
during any calendar quarter.
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 unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when those benefits are based upon
wages in employment under any type of coverage pursuant to which
reimbursement of benefits is permitted or required in lieu of the
contributions required of employers, whether or not the director has
certified the benefits to the employer as due or payable.
(b) The unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when, and to the extent that, the
benefits are subject to reimbursement by the federal government under
any federal law that requires or permits this state to pay benefits
from the Unemployment Fund and provides for reimbursement by the
federal government of all or part of those benefits.
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 pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
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 his or her reserve account has been
subject to benefit charges during the period of 12 complete
consecutive calendar quarters ending on the computation date for that
rating period and he or she is qualified under Sections 977 and
977.5.
(b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 percent unless his or her reserve account has
been subject to benefit charges during the period of 12 complete
consecutive calendar months ending on the computation date and the
new employer is qualified under Sections 977 and 977.5.
(c) For the purposes of this section "new employer" means any of
the following:
(1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
(2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
(3) An employer whose reserve account has been canceled pursuant
to Section 1029.
(d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
(1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
(2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
(e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the provisions
of Sections 977 and 977.5, when the director makes a determination,
pursuant to Section 135.1 or 135.2, because of arrangements entered
into or business activities conducted between January 1, 1984, and
January 1, 1986.
(f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 Sections 926, 927, and 985. On or before October
31 of each calendar year, the director shall prepare a statement,
which shall be a public record, declaring the rate of worker
contributions for the calendar year and shall notify promptly all
employers of employees covered for disability insurance of the rate.
(2) (A) Except as provided in paragraph (3), the rate of worker
contributions for calendar year 1987 and for each subsequent calendar
year shall be 1.45 times the amount disbursed from the Disability
Fund during the 12-month period ending September 30 and immediately
preceding the calendar year for which the rate is to be effective,
less the amount in the Disability Fund on that September 30, with the
resulting figure divided by total wages paid pursuant to Sections
926, 927, and 985 during the same 12-month period, and then rounded
to the nearest one-tenth of 1 percent.
(B) The director shall increase the rate of worker contributions
by .08 percent for the 2004 and 2005 calendar years to cover the
initial cost of family temporary disability insurance benefits
provided in Chapter 7 (commencing with Section 3300) of Part 2.
(3) The rate of worker contributions shall not exceed 1.5 percent
or be less than 0.1 percent. The rate of worker contributions shall
not decrease from the rate in the previous year by more than
two-tenths of 1 percent.
(b) Worker contributions required under Sections 708 and 708.5
shall be at a rate determined by the director to reimburse the
Disability Fund for unemployment compensation disability benefits
paid and estimated to be paid to all employers and self-employed
individuals covered by those sections. On or before November 30th of
each calendar year, the director shall prepare a statement, which
shall be a public record, declaring the rate of contributions for the
succeeding calendar year for all employers and self-employed
individuals covered under Sections 708 and 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. The
rate shall be determined by dividing the estimated benefits and
administrative costs paid in the prior year by the product of the
annual remuneration deemed to have been received under Sections 708
and 708.5 and the estimated number of persons who were covered at any
time in the prior year. The resulting rate shall be rounded to the
next higher one-hundredth percentage point. The rate may also be
reduced or increased by a factor estimated to maintain as nearly as
practicable a cumulative zero balance in the funds contributed
pursuant to Sections 708 and 708.5. Estimates made pursuant to this
subdivision may be made on the basis of statistical sampling, or
another method determined by the director.
(c) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
(d) (1) Notwithstanding subdivision (a), and except as provided in
paragraph (2), the director may, at his or her discretion, increase
or decrease, by not to exceed 0.1 percent, the rate of worker
contributions determined pursuant to subdivision (a), up to a maximum
worker contribution rate of 1.5 percent, if he or she determines the
adjustment is necessary to reimburse the Disability Fund for
disability benefits paid or estimated to be paid to individuals
covered by this section or to prevent the accumulation of funds in
excess of those needed to maintain an adequate fund balance.
(2) Notwithstanding paragraph (1), for the 2004, 2005, and 2006
calendar years, the director may not decrease the rate of worker
contributions, regardless of whether the director determines that a
decrease is necessary to prevent the accumulation of funds in excess
of those needed to maintain the adequacy of the Disability Fund
during program implementation.
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 the rate of contributions of the
succeeding calendar year for all employers and self-employed
individuals covered under Section 708 or 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. For
calendar years 1994 to 1996, inclusive, worker contributions
required under Section 708 or 708.5 shall be at a rate determined by
the director to reimburse the Disability Fund for the sum of
estimated administrative costs due to those sections and unemployment
compensation disability benefits estimated to be paid to all
employers and self-employed individuals covered by those sections.
The rate shall be determined by dividing the sum of the benefits
expected to be paid in the following calendar year and the
administrative costs expected to be incurred under Section 708 or
708.5 during that calendar year by earnings estimated to be reported
under those sections for that same calendar year. The resulting rate
shall be rounded to the next higher one-hundredth percentage point.
This rate may also be reduced or increased by a factor estimated to
maintain as nearly as practicable a cumulative zero balance in funds
contributed pursuant to Section 708 or 708.5.
For calendar year 1997, and each calendar year thereafter, the
rate established each November 30 shall be determined by multiplying
the current year's rate by the ratio of 1.10 times the current year
disbursements divided by contributions for the same period, under
Sections 708 and 708.5. If in any calendar year the cumulative
balance of contributions minus disbursements equals or exceeds 20
percent of annual disbursements, the contribution rate for the
succeeding year shall be adjusted to a level necessary to maintain
revenues at no more than 20 percent over annual disbursements. If
legislation is enacted necessitating adjustments in the benefit
levels for employers and self-employed individuals covered under
Section 708 or 708.5, the rate may be adjusted by a factor estimated
to provide that funds contributed pursuant to Section 708 or 708.5
cover disbursements pursuant to these sections.
For the purpose of this subdivision, disbursements are defined as
the sum of unemployment compensation disability benefits paid to
employers and self-employed individuals covered under Section 708 or
708.5, plus administrative costs related to those sections. Estimates
made pursuant to this subdivision shall be available for public
inspection.
(b) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
985. 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 benefit for each calendar year specified in
Section 2655 multiplied by 13 and divided by 55 percent has been paid
to an individual by an employer, is paid to the individual by the
employer.
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,
withhold in trust the amount of his workers' contributions from their
wages at the time the wages are paid, shall show the deduction on
his payroll records, and shall furnish each worker with a statement
in writing showing the amount which has been deducted, in such form
and at such times as may be prescribed.
(2) Hold in trust the amount of his workers' contributions, at the
time their wages are paid, where he undertakes or agrees to pay
without deduction from the wages of his workers the amount of worker
contributions required of his workers under this division.
(b) Each employer shall transmit all such contributions withheld
or held in trust to the department for the Disability Fund, in
addition to his own contributions for the Unemployment Fund, pursuant
to authorized regulations.
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 whether or not he has deducted the
contributions from the workers' wages at the time they were paid, but
no employer shall be liable for worker contributions required on
behalf of himself or of any of his employees with respect to wages
paid while there is in effect at the time the wages were paid a rule
or regulation or interpretation of the director or of the department
that such wages were not subject to such contributions.
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 under the control of the employer, the
worker may furnish the employer, on or before the 10th day of the
following month, or, if the amounts are estimated, on or before the
last day of the month following the calendar quarter, an amount equal
to the excess.
(b) If the worker contributions required by Section 984 with
respect to cash tips and cash gratuities exceed the amount of worker
contributions that can be collected by the employer from the wages of
the worker, the excess shall be paid by the worker, except as
provided by Section 1088.6. The worker shall pay the excess to the
department within 30 days from his or her receipt of the written
statement furnished by his or her employer pursuant to Section
1088.6. If the worker fails to pay the excess within the time
required by this subdivision, the director may make an assessment for
the excess and shall give the worker a written notice of the
assessment. Article 8 (commencing with Section 1126) with respect to
the assessment of contributions and Chapter 7 (commencing with
Section 1701) with respect to the collection of contributions shall
apply to the recovery of amounts under this subdivision.
(c) The director may offset amounts assessed pursuant to
subdivision (b) against any refund payable to the worker under
Section 1176.5 or against any amount of disability benefits to which
he or she may become entitled under Part 2 (commencing with Section
2601) within any of the following periods:
(1) The current disability benefit period.
(2) One year from the beginning date of any disability benefit
period that begins during the three-year period next succeeding the
service of notice of the assessment.
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 employer's assets and shall be paid
to the director prior to the payment of any other claim against the
employer.
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 employees or group of employers,
shall be made public and available for public inspection but in no
case shall the amount of tax paid by any employee or employer, or
group of employees or group of employers, be disclosed to the public.
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 shall be increased to one cent ($0.01).
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 and without negligence on the part
of the employing unit to another state having an unemployment
compensation law, or with respect to wages on which contributions
computed under the Federal Unemployment Tax Act previously have been
paid in error and without negligence on the part of the employing
unit to an agency of the federal government, shall be deemed for the
purposes of this division to have been paid to the department at the
time of the erroneous payment to the other state or to the federal
agency, if payment is made to the department by the employing unit
within 30 days after the employing unit is given notice pursuant to
Section 1206 by the director of the determination that payment shall
be made to the department. The 30-day period for payment may be
extended by the director for good cause for a period not to exceed an
additional 90 days.
(b) Any contributions paid to the Unemployment Fund or Disability
Fund with respect to wages on which contributions computed under this
division previously have been paid in error and without negligence
on the part of the employing unit to an admitted disability insurer,
to trustees administering a voluntary plan for the employing unit, to
a self-insured plan of the employing unit, to another agency of this
state, or to an agency of the federal government shall be deemed,
solely to the extent of the amount of contributions previously paid
in error and without negligence, for the purposes of this division to
have been paid to the department at the time of the erroneous
payment to the admitted disability insurer, to trustees administering
a voluntary plan for the employing unit, to a self-insured plan of
the employing unit, to another agency of this state, or to the
federal agency, if payment is made to the department by the employing
unit within 30 days after the employing unit is given notice
pursuant to Section 1206 by the director of the determination that
payment shall be made to the department. The 30-day period for
payment may be extended by the director for good cause for a period
not to exceed an additional 90 days. As used in this subdivision
"paid" includes credits made to a self-insured plan of the employing
unit. With respect to payments by an employing unit to an admitted
disability insurer, to trustees administering a voluntary plan for
the employing unit, or to a self-insured plan of the employing unit,
this subdivision shall apply only if one or more of the following
conditions are met:
(1) At the time of payment the employing unit has or prior to the
time of payment had an approved voluntary plan with the recipient of
the payment.
(2) Prior to the time of payment the employing unit had applied to
the department for a voluntary plan which was subsequently approved
by the department.
(3) At the time of payment the employing unit is a subsidiary or
affiliate of an employing unit having an approved voluntary plan.
(4) At the time of payment the employing unit believed that a
voluntary plan had been acquired pursuant to Section 3254.5.
(c) If payment is not made within the 30-day period or within the
period for which an extension is granted, this section shall not
apply and Article 7 (commencing with Section 1110), Article 8
(commencing with Section 1126), and Chapter 7 (commencing with
Section 1701), with respect to the payment of reported contributions,
and the assessment and collection of contributions shall apply.
(d) If the director finds that the collection of any contributions
will be jeopardized by delay this section shall not apply and the
director may make a jeopardy assessment and collect the contributions
pursuant to Article 8 (commencing with Section 1126), and Chapter 7
(commencing with Section 1701).
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 amounting to 100 percent of such
tax on account of contributions paid under this division, then the
additional amount of contributions provided for by Section 993 shall
be required to be paid into the Unemployment Fund.
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 Unemployment Fund in addition to the
amounts required by other provisions of this division an amount equal
to five-tenths of 1 percent, or such other percentage as applies for
a calendar year pursuant to Section 6157 of the Internal Revenue
Code of 1954, of all wages paid by him or her in employment and
included in the measure of the contributions allowed as the credit
against the tax imposed by Section 3301 of the Federal Unemployment
Tax Act.
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 Social Security Act and Sections 3302,
3303, and 3304 of the Federal Unemployment Tax Act.
995. The department shall submit to the Legislature in May and
October of each year a report on the status of the Unemployment Fund
and the Unemployment Compensation Disability Fund. Each report shall
include both actual and forecasted information on the fund balances,
receipts, disbursements, claim data, tax rates, and employment
levels.
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 calendar year with respect to wages paid for
employment. The contributions are due and shall be paid to the
department for the Unemployment Fund by each employer in accordance
with this division and shall not be deducted in whole or in part from
the wages of individuals in his employ.
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 subdivision (c) is applicable, may submit a
voluntary unemployment insurance contribution for the purpose of
redetermining its unemployment insurance contribution rate. No
redetermination of a contribution rate shall be made unless the
voluntary contribution is submitted as required in subdivision (c) of
Section 1110. No redetermination shall reduce an employer's
unemployment insurance contribution rate by more than three rates as
provided in Section 977.
(b) This section shall not be operative in calendar years in which
Contribution Rate Schedules E and F in Section 977 are in effect, or
in calendar years to which the emergency solvency surcharge provided
in Section 977.5 is in effect.
(c) This section does not apply to any of the following:
(1) An employer not eligible for a contribution rate other than
that provided pursuant to Section 982 or subdivision (c) of Section
977.
(2) An employer with a negative reserve account balance on the
computation date.
(3) An employer who was notified prior to September 1 of any
unpaid amount owed to the department which is not the subject of a
timely petition for reassessment pending before the appeals board on
September 30 preceding the year to which a contribution rate is
applicable.
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 that has elected an alternate
method of financing its liability for unemployment compensation
benefits pursuant to Article 5 (commencing with Section 801), or
Article 6 (commencing with Section 821) of Chapter 3, shall pay into
the Employment Training Fund contributions at the rate of 0.1 percent
of wages specified in Section 930. The contributions shall be
collected in the same manner and at the same time as any
contributions required under Sections 977 and 977.5.
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 employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 her average base payroll which
appears on any line in column 1 of the following table, but is less
than that percentage of his or her average base payroll which appears
on the same line in column 2 of that table, his or her contribution
rate shall be the figure appearing on that same line in the
appropriate schedule, as defined in subdivision (b), which shall be a
percentage of the wages specified in Section 930.
Reserve Contribution
Ratio Rate
Column Column Schedules
Line 1 2 AA A B C D E F
less than
-20
-20 to
-18
01 -18 to 5.4 5.4 5.4 5.4 5.4 5.4 5.4
02 -16 5.2 5.3 5.4 5.4 5.4 5.4 5.4
03 -16 to 5.1 5.2 5.4 5.4 5.4 5.4 5.4
04 -14 5.0 5.1 5.3 5.4 5.4 5.4 5.4
05 -14 to 4.9 5.0 5.3 5.4 5.4 5.4 5.4
06 -12 4.8 4.9 5.2 5.4 5.4 5.4 5.4
07 -12 to 4.7 4.8 5.1 5.3 5.4 5.4 5.4
08 -11 4.6 4.7 5.1 5.3 5.4 5.4 5.4
09 -11 to 4.5 4.6 4.9 5.2 5.4 5.4 5.4
10 -10 4.4 4.5 4.8 5.1 5.3 5.4 5.4
-10 to
-09
-09 to
-08
-08 to -07
-07 to
-06
11 -06 to 4.3 4.4 4.7 5.0 5.3 5.4 5.4
12 -05 4.2 4.3 4.6 4.9 5.2 5.4 5.4
13 -05 to 4.1 4.2 4.5 4.8 5.1 5.3 5.4
14 -04 4.0 4.1 4.4 4.7 5.0 5.3 5.4
15 -04 to 3.9 4.0 4.3 4.6 4.9 5.2 5.4
-03
-03 to -02
-02 to
-01
16 -01 to 3.8 3.9 4.2 4.5 4.8 5.1 5.4
17 00 3.7 3.8 4.1 4.4 4.7 5.0 5.4
18 00 to 3.4 3.6 3.9 4.2 4.5 4.8 5.1
19 01 3.2 3.4 3.7 4.0 4.3 4.6 4.9
20 01 to 3.0 3.2 3.5 3.8 4.1 4.4 4.7
02
02 to 03
03 to
04
21 04 to 2.8 3.0 3.3 3.6 3.9 4.2 4.5
22 05 2.6 2.8 3.1 3.4 3.7 4.0 4.3
23 05 to 2.4 2.6 2.9 3.2 3.5 3.8 4.1
24 06 2.2 2.4 2.7 3.0 3.3 3.6 3.9
25 06 to 2.0 2.2 2.5 2.8 3.1 3.4 3.7
07
07 to 08
08 to
09
26 09 to 1.8 2.0 2.3 2.6 2.9 3.2 3.5
27 10 1.6 1.8 2.1 2.4 2.7 3.0 3.3
28 10 to 1.4 1.6 1.9 2.2 2.5 2.8 3.1
29 11 1.2 1.4 1.7 2.0 2.3 2.6 2.9
30 11 to 1.0 1.2 1.5 1.8 2.1 2.4 2.7
12
12 to 13
13 to
31 14 0.8 1.0 1.3 1.6 1.9 2.2 2.5
32 14 to 0.7 0.9 1.1 1.4 1.7 2.0 2.3
33 15 0.6 0.8 1.0 1.2 1.5 1.8 2.1
34 15 to 0.5 0.7 0.9 1.1 1.3 1.6 1.9
16
16 to 17
17 to
35 18 0.4 0.6 0.8 1.0 1.2 1.4 1.7
36 18 to 0.3 0.5 0.7 0.9 1.1 1.3 1.5
37 19 0.2 0.4 0.6 0.8 1.0 1.2 1.4
38 19 to 0.1 0.3 0.5 0.7 0.9 1.1 1.3
20
20 or more
(b) (1) Whenever the balance in the Unemployment Fund on September
30 of any calendar year is greater than 1.8 percent of the wages (as
defined by Section 940) in employment subject to this part paid
during the 12-month period ending upon the computation date,
employers shall pay into the Unemployment Fund contributions for the
succeeding calendar year upon all wages with respect to employment at
the rates specified in Schedule AA.
(2) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.8 percent and greater
than 1.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule A.
(3) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.6 percent and greater
than 1.4 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule B.
(4) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.4 percent and greater
than 1.2 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule C.
(5) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.2 percent and greater
than 1.0 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule D.
(6) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is equal to or less than 1.0 percent and greater
than or equal to 0.8 percent of the wages (as defined by Section
940) in employment subject to this part paid during the 12-month
period ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year
upon all wages with respect to employment at the rates specified in
Schedule E.
(7) Whenever the balance in the Unemployment Fund on September 30
of any calendar year is less than 0.8 percent and greater than or
equal to 0.6 percent of the wages (as defined by Section 940) in
employment subject to this part paid during the 12-month period
ending upon the computation date, employers shall pay into the
Unemployment Fund contributions for the succeeding calendar year upon
all wages with respect to employment at the rates specified in
Schedule F.
(c) For each rating period beginning on or after January 1, 2005,
in which an employer obtains or attempts to obtain a more favorable
rate of contributions under this section due to deliberate ignorance,
reckless disregard, fraud, intent to evade, misrepresentation, or
willful nondisclosure, the director shall assign the maximum
contribution rate plus 2 percent for each applicable rating period,
the current rating period, and the subsequent rating period.
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 employment, subject to this part, paid
during the 12-month period ending on the computation date, employers
shall pay into the Unemployment Fund contributions for the succeeding
calendar year upon all wages with respect to employment at an
emergency solvency surcharge rate. The emergency solvency surcharge
rate shall be 1.15 times the rate the employer would have paid in
Schedule F of subdivision (a) of Section 977, rounded to the nearest
one-tenth of 1 percent.
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 schedules contained in Section
977 shall be in effect for that calendar year and whether the
emergency solvency surcharge pursuant to Section 977.5 shall be
added. The statement shall be a public record and shall be final and
binding for that calendar year. The statement shall include the
official tabulation of wages in subject employment made by the
department for the purpose of Sections 977 and 977.5, a summary of
the data upon which that tabulation was based, and the sources from
which those data were obtained, and shall further include a summary
of the data upon which the computation of the balance in the
Unemployment Fund was based, and their source. The director's action
under Sections 977, 977.5, and this section shall not constitute an
authorized regulation.
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 credited to this state's account in the
Unemployment Trust Fund pursuant to Section 903 of the federal Social
Security Act, as amended, which has been appropriated for expenses
of administration other than for capital assets, whether or not that
amount has been withdrawn from that fund.
(2) Any unexpended advance from the federal unemployment account
in the Unemployment Trust Fund received in accordance with Section
323 of this division and Title XII of the federal Social Security
Act, as amended.
(3) Any amount paid in advance into the Unemployment Fund by an
employer under any type of coverage pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
(4) Any amount paid in advance into the Unemployment Fund by the
federal government under any federal law that requires or permits
this state to pay benefits from the Unemployment Fund and provides
for advances by the federal government for reimbursement of all or
part of those benefits.
(b) In determining the balance in the Unemployment Fund for the
purpose of Sections 977 and 977.5, there shall also be excluded any
estimated or other contributions not legally due and payable with
respect to the final calendar quarter of the calendar year, except
any payment of contributions made under Sections 976.5 and 1137 and
except any payment of contributions by employers terminating business
during any calendar quarter.
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 unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when those benefits are based upon
wages in employment under any type of coverage pursuant to which
reimbursement of benefits is permitted or required in lieu of the
contributions required of employers, whether or not the director has
certified the benefits to the employer as due or payable.
(b) The unreimbursed balance of all benefits paid from the
Unemployment Fund to claimants when, and to the extent that, the
benefits are subject to reimbursement by the federal government under
any federal law that requires or permits this state to pay benefits
from the Unemployment Fund and provides for reimbursement by the
federal government of all or part of those benefits.
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 pursuant to which reimbursement
of benefits is permitted or required in lieu of the contributions
required of employers.
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 his or her reserve account has been
subject to benefit charges during the period of 12 complete
consecutive calendar quarters ending on the computation date for that
rating period and he or she is qualified under Sections 977 and
977.5.
(b) No new employer shall be eligible for a contribution rate of
more or less than 3.4 percent unless his or her reserve account has
been subject to benefit charges during the period of 12 complete
consecutive calendar months ending on the computation date and the
new employer is qualified under Sections 977 and 977.5.
(c) For the purposes of this section "new employer" means any of
the following:
(1) An employer who first qualifies as an employer after the 1969
calendar year, and whose account is continuously subject to benefit
charges from the date of first chargeability, except that a successor
employer under Section 1051 is not a new employer if the successor
applies for or obtains the transfer of the reserve account or part
thereof of a predecessor who is not a new employer.
(2) An employer whose entire reserve account has been transferred
to a successor under Article 5 (commencing with Section 1051) of
Chapter 4 of this part.
(3) An employer whose reserve account has been canceled pursuant
to Section 1029.
(d) Section 905 applies to a new employer, except that for the
purposes of this section "average base payroll" means:
(1) The payroll in the calendar year immediately preceding the
computation date for a new employer with a payroll only in that
calendar year.
(2) The quotient obtained by dividing by two the total amount of
taxable wages paid by a new employer during the most recent period of
two consecutive calendar years immediately preceding the computation
date, for a new employer with a payroll only in each of, or only in
the first of, the two consecutive calendar years.
(e) The contribution rate of an employer, for any period prior to
January 1, 1988, shall not be changed, other than by the provisions
of Sections 977 and 977.5, when the director makes a determination,
pursuant to Section 135.1 or 135.2, because of arrangements entered
into or business activities conducted between January 1, 1984, and
January 1, 1986.
(f) This section does not apply to an employer assigned the
maximum rate pursuant to subdivision (c) of Section 977.
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 Sections 926, 927, and 985. On or before October
31 of each calendar year, the director shall prepare a statement,
which shall be a public record, declaring the rate of worker
contributions for the calendar year and shall notify promptly all
employers of employees covered for disability insurance of the rate.
(2) (A) Except as provided in paragraph (3), the rate of worker
contributions for calendar year 1987 and for each subsequent calendar
year shall be 1.45 times the amount disbursed from the Disability
Fund during the 12-month period ending September 30 and immediately
preceding the calendar year for which the rate is to be effective,
less the amount in the Disability Fund on that September 30, with the
resulting figure divided by total wages paid pursuant to Sections
926, 927, and 985 during the same 12-month period, and then rounded
to the nearest one-tenth of 1 percent.
(B) The director shall increase the rate of worker contributions
by .08 percent for the 2004 and 2005 calendar years to cover the
initial cost of family temporary disability insurance benefits
provided in Chapter 7 (commencing with Section 3300) of Part 2.
(3) The rate of worker contributions shall not exceed 1.5 percent
or be less than 0.1 percent. The rate of worker contributions shall
not decrease from the rate in the previous year by more than
two-tenths of 1 percent.
(b) Worker contributions required under Sections 708 and 708.5
shall be at a rate determined by the director to reimburse the
Disability Fund for unemployment compensation disability benefits
paid and estimated to be paid to all employers and self-employed
individuals covered by those sections. On or before November 30th of
each calendar year, the director shall prepare a statement, which
shall be a public record, declaring the rate of contributions for the
succeeding calendar year for all employers and self-employed
individuals covered under Sections 708 and 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. The
rate shall be determined by dividing the estimated benefits and
administrative costs paid in the prior year by the product of the
annual remuneration deemed to have been received under Sections 708
and 708.5 and the estimated number of persons who were covered at any
time in the prior year. The resulting rate shall be rounded to the
next higher one-hundredth percentage point. The rate may also be
reduced or increased by a factor estimated to maintain as nearly as
practicable a cumulative zero balance in the funds contributed
pursuant to Sections 708 and 708.5. Estimates made pursuant to this
subdivision may be made on the basis of statistical sampling, or
another method determined by the director.
(c) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
(d) (1) Notwithstanding subdivision (a), and except as provided in
paragraph (2), the director may, at his or her discretion, increase
or decrease, by not to exceed 0.1 percent, the rate of worker
contributions determined pursuant to subdivision (a), up to a maximum
worker contribution rate of 1.5 percent, if he or she determines the
adjustment is necessary to reimburse the Disability Fund for
disability benefits paid or estimated to be paid to individuals
covered by this section or to prevent the accumulation of funds in
excess of those needed to maintain an adequate fund balance.
(2) Notwithstanding paragraph (1), for the 2004, 2005, and 2006
calendar years, the director may not decrease the rate of worker
contributions, regardless of whether the director determines that a
decrease is necessary to prevent the accumulation of funds in excess
of those needed to maintain the adequacy of the Disability Fund
during program implementation.
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 the rate of contributions of the
succeeding calendar year for all employers and self-employed
individuals covered under Section 708 or 708.5 and shall notify
promptly the employers and self-employed individuals of the rate. For
calendar years 1994 to 1996, inclusive, worker contributions
required under Section 708 or 708.5 shall be at a rate determined by
the director to reimburse the Disability Fund for the sum of
estimated administrative costs due to those sections and unemployment
compensation disability benefits estimated to be paid to all
employers and self-employed individuals covered by those sections.
The rate shall be determined by dividing the sum of the benefits
expected to be paid in the following calendar year and the
administrative costs expected to be incurred under Section 708 or
708.5 during that calendar year by earnings estimated to be reported
under those sections for that same calendar year. The resulting rate
shall be rounded to the next higher one-hundredth percentage point.
This rate may also be reduced or increased by a factor estimated to
maintain as nearly as practicable a cumulative zero balance in funds
contributed pursuant to Section 708 or 708.5.
For calendar year 1997, and each calendar year thereafter, the
rate established each November 30 shall be determined by multiplying
the current year's rate by the ratio of 1.10 times the current year
disbursements divided by contributions for the same period, under
Sections 708 and 708.5. If in any calendar year the cumulative
balance of contributions minus disbursements equals or exceeds 20
percent of annual disbursements, the contribution rate for the
succeeding year shall be adjusted to a level necessary to maintain
revenues at no more than 20 percent over annual disbursements. If
legislation is enacted necessitating adjustments in the benefit
levels for employers and self-employed individuals covered under
Section 708 or 708.5, the rate may be adjusted by a factor estimated
to provide that funds contributed pursuant to Section 708 or 708.5
cover disbursements pursuant to these sections.
For the purpose of this subdivision, disbursements are defined as
the sum of unemployment compensation disability benefits paid to
employers and self-employed individuals covered under Section 708 or
708.5, plus administrative costs related to those sections. Estimates
made pursuant to this subdivision shall be available for public
inspection.
(b) The director's action in determining a rate under this section
shall not constitute an authorized regulation.
985. 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 benefit for each calendar year specified in
Section 2655 multiplied by 13 and divided by 55 percent has been paid
to an individual by an employer, is paid to the individual by the
employer.
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,
withhold in trust the amount of his workers' contributions from their
wages at the time the wages are paid, shall show the deduction on
his payroll records, and shall furnish each worker with a statement
in writing showing the amount which has been deducted, in such form
and at such times as may be prescribed.
(2) Hold in trust the amount of his workers' contributions, at the
time their wages are paid, where he undertakes or agrees to pay
without deduction from the wages of his workers the amount of worker
contributions required of his workers under this division.
(b) Each employer shall transmit all such contributions withheld
or held in trust to the department for the Disability Fund, in
addition to his own contributions for the Unemployment Fund, pursuant
to authorized regulations.
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 whether or not he has deducted the
contributions from the workers' wages at the time they were paid, but
no employer shall be liable for worker contributions required on
behalf of himself or of any of his employees with respect to wages
paid while there is in effect at the time the wages were paid a rule
or regulation or interpretation of the director or of the department
that such wages were not subject to such contributions.
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 under the control of the employer, the
worker may furnish the employer, on or before the 10th day of the
following month, or, if the amounts are estimated, on or before the
last day of the month following the calendar quarter, an amount equal
to the excess.
(b) If the worker contributions required by Section 984 with
respect to cash tips and cash gratuities exceed the amount of worker
contributions that can be collected by the employer from the wages of
the worker, the excess shall be paid by the worker, except as
provided by Section 1088.6. The worker shall pay the excess to the
department within 30 days from his or her receipt of the written
statement furnished by his or her employer pursuant to Section
1088.6. If the worker fails to pay the excess within the time
required by this subdivision, the director may make an assessment for
the excess and shall give the worker a written notice of the
assessment. Article 8 (commencing with Section 1126) with respect to
the assessment of contributions and Chapter 7 (commencing with
Section 1701) with respect to the collection of contributions shall
apply to the recovery of amounts under this subdivision.
(c) The director may offset amounts assessed pursuant to
subdivision (b) against any refund payable to the worker under
Section 1176.5 or against any amount of disability benefits to which
he or she may become entitled under Part 2 (commencing with Section
2601) within any of the following periods:
(1) The current disability benefit period.
(2) One year from the beginning date of any disability benefit
period that begins during the three-year period next succeeding the
service of notice of the assessment.
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 employer's assets and shall be paid
to the director prior to the payment of any other claim against the
employer.
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 employees or group of employers,
shall be made public and available for public inspection but in no
case shall the amount of tax paid by any employee or employer, or
group of employees or group of employers, be disclosed to the public.
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 shall be increased to one cent ($0.01).
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 and without negligence on the part
of the employing unit to another state having an unemployment
compensation law, or with respect to wages on which contributions
computed under the Federal Unemployment Tax Act previously have been
paid in error and without negligence on the part of the employing
unit to an agency of the federal government, shall be deemed for the
purposes of this division to have been paid to the department at the
time of the erroneous payment to the other state or to the federal
agency, if payment is made to the department by the employing unit
within 30 days after the employing unit is given notice pursuant to
Section 1206 by the director of the determination that payment shall
be made to the department. The 30-day period for payment may be
extended by the director for good cause for a period not to exceed an
additional 90 days.
(b) Any contributions paid to the Unemployment Fund or Disability
Fund with respect to wages on which contributions computed under this
division previously have been paid in error and without negligence
on the part of the employing unit to an admitted disability insurer,
to trustees administering a voluntary plan for the employing unit, to
a self-insured plan of the employing unit, to another agency of this
state, or to an agency of the federal government shall be deemed,
solely to the extent of the amount of contributions previously paid
in error and without negligence, for the purposes of this division to
have been paid to the department at the time of the erroneous
payment to the admitted disability insurer, to trustees administering
a voluntary plan for the employing unit, to a self-insured plan of
the employing unit, to another agency of this state, or to the
federal agency, if payment is made to the department by the employing
unit within 30 days after the employing unit is given notice
pursuant to Section 1206 by the director of the determination that
payment shall be made to the department. The 30-day period for
payment may be extended by the director for good cause for a period
not to exceed an additional 90 days. As used in this subdivision
"paid" includes credits made to a self-insured plan of the employing
unit. With respect to payments by an employing unit to an admitted
disability insurer, to trustees administering a voluntary plan for
the employing unit, or to a self-insured plan of the employing unit,
this subdivision shall apply only if one or more of the following
conditions are met:
(1) At the time of payment the employing unit has or prior to the
time of payment had an approved voluntary plan with the recipient of
the payment.
(2) Prior to the time of payment the employing unit had applied to
the department for a voluntary plan which was subsequently approved
by the department.
(3) At the time of payment the employing unit is a subsidiary or
affiliate of an employing unit having an approved voluntary plan.
(4) At the time of payment the employing unit believed that a
voluntary plan had been acquired pursuant to Section 3254.5.
(c) If payment is not made within the 30-day period or within the
period for which an extension is granted, this section shall not
apply and Article 7 (commencing with Section 1110), Article 8
(commencing with Section 1126), and Chapter 7 (commencing with
Section 1701), with respect to the payment of reported contributions,
and the assessment and collection of contributions shall apply.
(d) If the director finds that the collection of any contributions
will be jeopardized by delay this section shall not apply and the
director may make a jeopardy assessment and collect the contributions
pursuant to Article 8 (commencing with Section 1126), and Chapter 7
(commencing with Section 1701).
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 amounting to 100 percent of such
tax on account of contributions paid under this division, then the
additional amount of contributions provided for by Section 993 shall
be required to be paid into the Unemployment Fund.
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 Unemployment Fund in addition to the
amounts required by other provisions of this division an amount equal
to five-tenths of 1 percent, or such other percentage as applies for
a calendar year pursuant to Section 6157 of the Internal Revenue
Code of 1954, of all wages paid by him or her in employment and
included in the measure of the contributions allowed as the credit
against the tax imposed by Section 3301 of the Federal Unemployment
Tax Act.
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 Social Security Act and Sections 3302,
3303, and 3304 of the Federal Unemployment Tax Act.
995. The department shall submit to the Legislature in May and
October of each year a report on the status of the Unemployment Fund
and the Unemployment Compensation Disability Fund. Each report shall
include both actual and forecasted information on the fund balances,
receipts, disbursements, claim data, tax rates, and employment
levels.
