Records and Reports Due Under the Unemployment Insurance Code

California’s Unemployment Insurance Code deals with records, reports, and contribution payments in Division 1, Part 1, Chapter 4, Article 6. Section 1085 requires every employing unit to keep a true and accurate work record of all his workers and their status on layoff or leave of absence; the wages paid by him to each worker; and, other information as the director deems necessary to proper administration of this division.

Section 1086 requires each employing unit within 15 days after becoming an employer as defined in this part shall register with the department on a form prescribed by the department.

Section 1087 provides that any officer or employee of the Sales and Use Tax Division of the Board of Equalization who is authorized to accept an application for a seller’s permit or authorized to register a retailer, is a duly authorized agent of the Employment Development Department for purposes of accepting registration of employers as required in this part.

Section 1088 requires each employer to file with the director within the time required for payment of employer contributions, a report of contributions, a quarterly return, and a report of wages paid to the employer’s workers in the form and containing any information as the director prescribes. The quarterly return must include the total amount of wages, employer contributions, worker contributions, the amounts required to be withheld, and any other information as the director prescribes.

Section 1088.5 says that, in addition to information reported, each employer is required to file with the department the information provided for new employees. Each employer has to report the hiring of any employee who works in this state and to whom the employer anticipates paying wages, as well as report the hiring of any employee who previously worked for the employer but had been separated from that prior employment for at least 60 consecutive days.

Section 1088.6 provides that each employer must furnish a written statement to the worker showing the excess of the worker contributions required with respect to wages included over the worker contributions withheld, and file a copy of this statement with the director. If the employer fails to furnish the statement, as required by this section and authorized regulations, he or she will be liable for the excess of the worker contributions.

Section 1088.8 states that any service-recipient who makes or is required to make a return to the Internal Revenue Service must file with the department information as required. In addition, the terms “service recipient,” and “service provider” are defined.

In addition, each service-recipient must report all of the specified information to the department, within 20 days of the earlier of first making payments that in the aggregate equal or exceed $600 in any year to a service-provider, or entering into a contract or contracts with a service-provider providing for payments that in the aggregate equal or exceed $600 in any year.

Section 1089 requires each employer to post and maintain, in places readily accessible to individuals in the employer’s service, printed statements concerning benefit rights and other matters as may be prescribed by authorized regulations. Each employer has to supply each individual at the time they become unemployed with copies of printed statements or materials relating to claims for benefits, and employers must immediately notify each employee of any change in the employee’s relationship with that employer.

Section 1090 requires every assignee, receiver, trustee in bankruptcy, or other representative of an insolvent employing unit, and every administrator or executor of the estate of a deceased employing unit, to send notice in writing within 30 days of the name and address of the employing unit, his own name and address, and such other information as may be required by the director.

Section 1092 requires every employing unit to furnish to the director, administrative law judge, or deputy, upon demand, a sworn statement of the matters contained in the records required. If such records are kept pursuant to contract with a financial institution, the employing unit must also furnish to the director or the director’s authorized representative an authorization for disclosure of such account or accounts.

Section 1093 provides that, in the event any employer fails to keep and furnish to the director, upon notice, any required records or reports necessary for a full determination, decision on appeal, or other proper disposition of any claim for benefits in any proceeding under this division, within such reasonable time as the director may by rule, regulation, or procedure prescribe, it is conclusively presumed that the claimant is entitled to the maximum total amount of benefits payable under this division unless it is established by other evidence which the director deems sufficient that a lesser total amount of benefits is properly due and owing to the claimant.

Section 1094 provides that the information obtained in the administration of this code is confidential, not open to the public, and is for the exclusive use and information of the director in discharge of his or her duties. The information released to authorized entities pursuant to other provisions of the code is not admissible in evidence in any action or special proceeding.

Section 1095 requires the director to permit the use of any information in the director’s possession to the extent necessary for any of the specified purposes, and may require reimbursement for all direct costs incurred in providing any and all information specified in this section, with specified exceptions.

Section 1095.5 requires the director to permit the use of any information in their possession to the extent necessary to enable the Mental Health Services Oversight and Accountability Commission to receive quarterly wage data of mental health consumers served by the California public mental health system for the purpose of monitoring and evaluating employment outcomes to determine the effectiveness of those services.

Section 1096 provides that, where a number of workers are normally employed in employment in the course of a year by several employers, these employers, with the approval of the director, may appoint an agent. The agent may maintain records and prepare and file returns and reports required under this division with respect to the workers.

Section 1097 specifies that the manner of crediting to each employer the employment experience of the group of employers who have appointed an agent may be prescribed by authorized regulations. Employers who operate or do business in more than one place may, with the approval of the director, appoint a separate agent in each such place.

Article 7 deals with the payment of reported contributions. Section 1110 specifies that employer contributions required under Sections 976 and 976.6, the amount of benefits received by any individual pursuant to this part that is deducted from an award or settlement made by the employer under Section 1382, and, except as provided by subdivision (b), worker contributions required under Section 984 are due and payable on the first day of the calendar month following the close of each calendar quarter and shall become delinquent if not paid on or before the last day of that month.

In addition, worker contributions required under Section 984 are due and payable at the same time and by the same method as amounts required to be withheld under Section 13020 are paid to the department pursuant to Section 13021, regardless of the amount of accumulated unpaid liability for worker contributions.

Section 1110.1 requires the director to allocate any payment to the department relating to liability for contributions, withheld personal income tax, penalty and interest, in accordance with any designation made by the payer at or before the time the payment is made to the department. The director may apply the specified standards in making any allocation under this section.

Section 1110.6 provides that, whenever the liability of an employer for contributions under this division arises under the terms of a written contract in which such employer has agreed, for the benefit of another party to such contract, to assume ultimate liability for contributions under this division in the event of the default in payment thereof by any other employer affected by such contract. These contributions do not become delinquent and no penalties or interest prescribed by this chapter will accrue until after the 30th day following the date of mailing or service of notice upon him, by the director, of the default of any such other employer.

Section 1111 authorizes the director to extend for not to exceed 60 days the time for making a return or report or paying without penalty any amount required to be paid under this division. Any employer to whom an extension is granted and who pays the amount required within the period for which the extension is granted will pay, in addition to the contributions, interest at the adjusted annual rate.

Section 1111.5 states that, if the Governor declares a state of emergency, the director may extend the time requirements for filing returns or reports and the time requirement for payment of employer and worker contributions.

Section 1112 provides that any employer who without good cause fails to pay any contributions required of him or her or of his or her workers, within the time required is required to pay a penalty of 15% of the amount of those contributions. Any employer required to remit payments electronically who without good cause remits those amounts by means other than electronic shall pay a penalty of 15% of the amount of those contributions.

Section 1112.1 states that an employer who is required to file a quarterly return electronically and without good cause fails to file a quarterly return electronically must pay a penalty of $50, in addition to any other penalties imposed by this code.

Section 1112.5 says that any employer who without good cause fails to file the return and reports required within 60 days of the time required must pay a penalty of 15% of the amount of contributions and personal income tax withholding required by this report. 

Section 1113 specifies that any employer who fails to pay any contributions required of him or of his workers, except amounts assessed under Article 8 (commencing with Section 1126), within the time required shall become liable for interest on such contributions at the adjusted annual rate and by the method established pursuant to Section 19521 of the Revenue and Taxation Code from and after the date of delinquency until paid.

Section 1113.1 states that an employer who, through an error caused by excusable neglect, makes an underpayment of the amount due on a report of contributions is not be liable for penalty or interest if proper adjustment is made at the time of the filing of the quarterly report of contributions and quarterly return, for the same calendar quarter and an explanation of the error is attached to the report or return.

Section 1114 states that any employer who, without good cause, fails to file within 15 days after service by the director of notice of a specific written demand therefor, a report of wages of each of his or her workers required by this division, will be required to pay in addition to other amounts required, for each unreported wage item a penalty of $20.

Section 1115 specifies that, if the director finds that the collection of any contributions will be jeopardized in any case where an employing unit is insolvent, or is delinquent in a substantial amount of contributions due under this division, or is about to discontinue business at any of its known places of business, or the business is of a temporary or seasonal nature, the director may, upon giving the employing unit 10 days’ notice, require payment of contributions with respect to wages paid from the beginning date of the calendar quarter in which notice is given to the date designated in the notice. The term “reporting period” is defined.

Section 1116 provides that every employing unit except a domestic or foreign corporation or a domestic or foreign limited liability company is required, within 10 days of quitting business, to file with the director a final return and report of wages of its workers, in the form and containing such information as the director prescribes. The term “quitting business” is defined.

Section 1117 states that, if any employer fails to file the annual reconciliation return before 30 days after notice has been given to the employer of his or her failure to file, the employer will have to pay a penalty of $1,000 or 5% of the employer and worker contributions required to be reconciled, whichever is less.

Section 1119 requires the director to notify the United States Internal Revenue Service and the United States Department of Labor of the failure of an Indian tribe to make a payment of an amount required to be paid under this article within 90 days of the date of a notice specifying the amount due.