Chapter 5. Collections of California Unemployment Insurance Code >> Division 6. >> Chapter 5.
(a) The employer shall be liable for the payment of the tax
required to be deducted and withheld under Section 13020, and shall
not be liable to any person for the amount of such payment.
(b) Whenever any employer or person has withheld any amount
pursuant to this division, the amount so withheld shall be held to be
a special fund in trust for the State of California.
If the employer, in violation of the provisions of this
division, fails to deduct and withhold the tax under this division,
and thereafter the tax against which the tax may be credited is paid
or the taxpayer reports to the Franchise Tax Board the wages or gross
income against which the tax would have been imposed, the tax so
required to be deducted and withheld shall not be collected from the
employer, but this section shall in no case relieve the employer from
liability for any penalties or additions to the tax otherwise
applicable with respect to the failure to deduct and withhold.
The department may by notice, served personally or by
first-class mail, require any employer, person, officer or department
of the state, political subdivision or agency of the state,
including the Regents of the University of California, a city
organized under a freeholders' charter, or a political body not a
subdivision or agency of the state, having in their possession, or
under their control, any credits or other personal property or other
things of value, belonging to a taxpayer or to an employer or person
who has failed to withhold and transmit amounts due pursuant to
Section 13070 or 13073 to withhold, from such credits or other
personal property or other things of value, the amount of any tax,
interest, or penalties due from the taxpayer or the amount of any
liability incurred by such employer or person for failure to withhold
and transmit amounts due from a taxpayer and to transmit the amount
withheld to the department at such times as it may designate.
Any employer or person failing to withhold the amount due
from any taxpayer and to transmit the same to the department after
service of a notice pursuant to Section 13072 is liable for such
Any employer or person required to withhold and transmit any
amount pursuant to this division shall comply with the requirement
without resort to any legal or equitable action in a court of law or
equity. Any employer or person paying to the department any amount
required by it to be withheld is not liable therefor to the person
from whom withheld unless the amount withheld is refunded to the
Whenever, under any provision of this division, service is
authorized upon the state of any notice to withhold, unless expressly
exempted from the provisions of this section, such service to be
effective must, in addition to any other requirements, be made on the
state agency owing the obligation prior to the time such agency
presents the claim for payment thereof to the State Controller.
If the employer is the United States, or this state, or any
political subdivision thereof, including the Regents of the
University of California, a city organized under a freeholders'
charter, or any agency or instrumentality of any one or more of the
foregoing, the return of the amount deducted and withheld upon any
wages may be made by any officer or employee of the United States, or
of such state, city organized under a freeholders' charter, or
political subdivision, or of such agency or instrumentality, as the
case may be, having control of the payment of such wages, or
appropriately designated for that purpose.
(a) For purposes of Sections 13020 and 13070, if a lender,
surety, or other person, who is not an employer under such sections
with respect to an employee or group of employees, pays wages
directly to such an employee or group of employees, employed by one
or more employers, or to an agent on behalf of such employee or
employees, such lender, surety, or other person shall be liable in
his or her own person and estate to the State of California in a sum
equal to the taxes (together with interest) required to be deducted
and withheld from such wages by such employer.
(b) If a lender, surety, or other person supplies funds to or for
the account of an employer for the specific purpose of paying wages
of the employees of such employer, with actual notice or knowledge
that such employer does not intend to or will not be able to make
timely payment or deposit of the amounts of tax required by this part
to be deducted and withheld by such employer from such wages, such
lender, surety, or other person shall be liable in his or her own
person and estate to the State of California in a sum equal to the
taxes (together with interest) which are not paid over to the State
of California by such employer with respect to such wages. However,
the liability of such lender, surety, or other person shall be
limited to an amount equal to 25 percent of the amount so supplied to
or for the account of such employer for such purpose.
(c) Any amounts paid to the State of California pursuant to this
section shall be credited against the liability of the employer.