| 1 | 1 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 408Introduced by Senator Nguyen(Principal coauthor: Senator Wilk)February 15, 2017 An act to amend Section 13020 of the Unemployment Insurance Code, relating to income tax withholding. LEGISLATIVE COUNSEL'S DIGESTSB 408, as introduced, Nguyen. Income taxes withholding: exemption: active duty residents.Existing law requires every employer who pays wages to an employee for services performed in this state to withhold from those wages specified income taxes, with certain exclusions, including an exclusion from withholding wages, salaries, fees, or other compensation paid by a corporation for services performed in the state for that corporation to a nonresident corporate director for director services. Existing law authorizes the Franchise Tax Board to impose specified requirements for withholding of those taxes.This bill also would exclude from withholding wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 13020 of the Unemployment Insurance Code is amended to read:13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 408Introduced by Senator Nguyen(Principal coauthor: Senator Wilk)February 15, 2017 An act to amend Section 13020 of the Unemployment Insurance Code, relating to income tax withholding. LEGISLATIVE COUNSEL'S DIGESTSB 408, as introduced, Nguyen. Income taxes withholding: exemption: active duty residents.Existing law requires every employer who pays wages to an employee for services performed in this state to withhold from those wages specified income taxes, with certain exclusions, including an exclusion from withholding wages, salaries, fees, or other compensation paid by a corporation for services performed in the state for that corporation to a nonresident corporate director for director services. Existing law authorizes the Franchise Tax Board to impose specified requirements for withholding of those taxes.This bill also would exclude from withholding wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION |
|---|
| 10 | 10 | | |
|---|
| 11 | 11 | | Senate Bill No. 408 |
|---|
| 12 | 12 | | |
|---|
| 13 | 13 | | Introduced by Senator Nguyen(Principal coauthor: Senator Wilk)February 15, 2017 |
|---|
| 14 | 14 | | |
|---|
| 15 | 15 | | Introduced by Senator Nguyen(Principal coauthor: Senator Wilk) |
|---|
| 16 | 16 | | February 15, 2017 |
|---|
| 17 | 17 | | |
|---|
| 18 | 18 | | An act to amend Section 13020 of the Unemployment Insurance Code, relating to income tax withholding. |
|---|
| 19 | 19 | | |
|---|
| 20 | 20 | | LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | ## LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 23 | 23 | | |
|---|
| 24 | 24 | | SB 408, as introduced, Nguyen. Income taxes withholding: exemption: active duty residents. |
|---|
| 25 | 25 | | |
|---|
| 26 | 26 | | Existing law requires every employer who pays wages to an employee for services performed in this state to withhold from those wages specified income taxes, with certain exclusions, including an exclusion from withholding wages, salaries, fees, or other compensation paid by a corporation for services performed in the state for that corporation to a nonresident corporate director for director services. Existing law authorizes the Franchise Tax Board to impose specified requirements for withholding of those taxes.This bill also would exclude from withholding wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 27 | 27 | | |
|---|
| 28 | 28 | | Existing law requires every employer who pays wages to an employee for services performed in this state to withhold from those wages specified income taxes, with certain exclusions, including an exclusion from withholding wages, salaries, fees, or other compensation paid by a corporation for services performed in the state for that corporation to a nonresident corporate director for director services. Existing law authorizes the Franchise Tax Board to impose specified requirements for withholding of those taxes. |
|---|
| 29 | 29 | | |
|---|
| 30 | 30 | | This bill also would exclude from withholding wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 31 | 31 | | |
|---|
| 32 | 32 | | ## Digest Key |
|---|
| 33 | 33 | | |
|---|
| 34 | 34 | | ## Bill Text |
|---|
| 35 | 35 | | |
|---|
| 36 | 36 | | The people of the State of California do enact as follows:SECTION 1. Section 13020 of the Unemployment Insurance Code is amended to read:13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 37 | 37 | | |
|---|
| 38 | 38 | | The people of the State of California do enact as follows: |
|---|
| 39 | 39 | | |
|---|
| 40 | 40 | | ## The people of the State of California do enact as follows: |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | SECTION 1. Section 13020 of the Unemployment Insurance Code is amended to read:13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | SECTION 1. Section 13020 of the Unemployment Insurance Code is amended to read: |
|---|
| 45 | 45 | | |
|---|
| 46 | 46 | | ### SECTION 1. |
|---|
| 47 | 47 | | |
|---|
| 48 | 48 | | 13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 49 | 49 | | |
|---|
| 50 | 50 | | 13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 51 | 51 | | |
|---|
| 52 | 52 | | 13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code.(2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph.(b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a).(c) Withholding shall not be required by this section with respect to wages, either of the following:(1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting.(2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|
| 53 | 53 | | |
|---|
| 54 | 54 | | |
|---|
| 55 | 55 | | |
|---|
| 56 | 56 | | 13020. (a) (1) Every employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, shall deduct and withhold from those wages, except as provided in subdivision (c) and Sections 13025 and 13026, for each payroll period, a tax computed in that manner as to produce, so far as practicable, with due regard to the credits for personal exemptions allowable under Section 17054 of the Revenue and Taxation Code, a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. The method of determining the amount to be withheld shall be prescribed by the Franchise Tax Board pursuant to Section 18663 of the Revenue and Taxation Code. |
|---|
| 57 | 57 | | |
|---|
| 58 | 58 | | (2) For each payroll period ending on or after November 1, 2009, the sum shall comport with the changes made to Section 18663 of the Revenue and Taxation Code, by the act adding this paragraph. |
|---|
| 59 | 59 | | |
|---|
| 60 | 60 | | (b) The department upon request may permit the use of accounting machines to calculate the proper amount to be deducted and withheld from wages, if the calculation produces an amount substantially equivalent to the amount of tax required to be withheld under subdivision (a). |
|---|
| 61 | 61 | | |
|---|
| 62 | 62 | | (c) Withholding shall not be required by this section with respect to wages, either of the following: |
|---|
| 63 | 63 | | |
|---|
| 64 | 64 | | (1) Wages, salaries, fees, or other compensation paid by a corporation for services performed in California for that corporation to a nonresident corporate director for director services, including attendance at a board of directors meeting. |
|---|
| 65 | 65 | | |
|---|
| 66 | 66 | | (2) Wages, salaries, fees, or other compensation paid to a resident of the state while he or she is in active military duty. |
|---|