Section 1110.1 Of Article 7. Payment Of Reported Contributions From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 7.
1110.1
. (a) Notwithstanding any other provision of law, the
director shall 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.
(b) Notwithstanding any other provision of law, if a payer, at or
before the time a payment is made to the department, does not
designate an obligation to which the payment is to be applied, the
director shall allocate the payment in the following order of
priority:
(1) Employer contributions required under Sections 976 and 976.6,
worker contributions, and withheld personal income tax, in proportion
to the aggregate amount of such employer contributions, worker
contributions, and withheld personal income tax due.
(2) Penalties and interest due under this division, and penalties
and interest due based upon withheld personal income tax.
(c) The director may apply the following standards in making any
allocation under this section:
(1) First priority may be given to the extinction of obligations
due at the time of payment with respect to which a lien has not been
recorded, in the order inverse to that in which the obligation became
due.
(2) Second priority may be given to the extinction of obligations
due at the time of payment with respect to which a lien has been
recorded. If more than one lien has been recorded, the obligations
covered by the most recent lien recorded may be extinguished in full
before any payment is allocated to obligations covered by the next
prior lien recorded.