708.5
. (a) Any individual who is self-employed, who is not an
employer as defined in any provision of Article 3 (commencing with
Section 675), of Chapter 3 of this part, and who receives the major
part of his or her remuneration from the trade, business, or
occupation in which he or she is self-employed, may file with the
director a written election that his or her services in connection
with his or her trade, business, or occupation shall be deemed to be
services performed by an individual in employment for an employer for
the purposes of Part 2 (commencing with Section 2601) only. Upon the
approval of the election by the director, the services of that
self-employed individual in connection with his or her trade,
business, or occupation shall be deemed to constitute employment for
an employer for the purposes of Part 2 only of this division.
Regardless of his or her actual earnings, for the purpose of
computing disability benefit rights and worker contributions, he or
she shall be deemed to have received remuneration for each calendar
quarter the highest amount of wages required to be entitled to the
maximum benefit award provided in Section 2655. For contributions on
or after July 1, 1994, the quarterly contribution shall be the
product of one-fourth of the amount of net profit, but not less than
one thousand one hundred fifty dollars ($1,150), except when
subparagraph (B) of paragraph (2) of subdivision (a) of Section 708
applies, reported on or before April 15 of the preceding year as
declared on the Internal Revenue Service Schedule SE filed by an
individual who is an employer under this division and the
contribution rate established pursuant to Section 984.5, except as
provided by Section 985. The quarterly contribution shall be reduced
as set forth in subparagraph (B) of paragraph (2) of subdivision (a)
of Section 708 if a disability occurred during the quarter for which
payment is being made. On January 1, 1995, quarterly income credits
for the period from July 1, 1993, to June 30, 1994, inclusive, shall
be changed to one-fourth of the net profit or four thousand six
hundred dollars ($4,600), whichever is greater, reported on or before
April 15, 1993, as declared on the Internal Revenue Service Schedule
SE for the 1992 taxable year filed by each individual having an
elective coverage agreement in effect for that period or any portion
thereof. If no Internal Revenue Service Schedule SE was filed, the
individual shall be assigned a quarterly income credit of one
thousand one hundred fifty dollars ($1,150). Quarterly income credits
for this period shall not exceed seven thousand nine hundred
forty-two dollars ($7,942). If quarterly income credits for the
period from July 1, 1993, to June 30, 1994, inclusive, were reduced
prior to January 1, 1995, the amended income credits shall be reduced
proportionately. Benefits payable for periods of disability
commencing on or after January 1, 1995, shall be based on the
provisions of Section 2655. For purposes of this division, income
credits shall be included in the term "wages."
(b) (1) Any individual applying for or continuing elective
coverage under this section shall be requested to sign an annual
statement authorizing the department to verify the net profit
declared on his or her Internal Revenue Service Schedule SE. Failure
of the individual to sign a statement authorizing the department to
verify income shall result in the individual being assigned an annual
income level of four thousand six hundred dollars ($4,600) for
contribution and benefit purposes.
(2) Any individual applying for elective coverage shall submit a
copy of his or her Internal Revenue Service Schedule SE filed on or
before April 15 of the preceding year with his or her application for
elective coverage in order to establish first-year contributions and
benefits in excess of the minimum required to qualify for elective
coverage.
(c) Any self-employed individual continuing elective coverage who
fails to file an Internal Revenue Service Schedule SE by April 15 of
each calendar year is required to remit contributions based upon the
last year the self-employed individual filed an Internal Revenue
Service Schedule SE.
(d) Any self-employed individual who has not yet filed an Internal
Revenue Service Schedule SE shall be assigned an annual income level
of four thousand six hundred dollars ($4,600) for contribution and
benefit purposes.
(e) Worker contributions required under this division are payable
on and after the date stated in the approval of the director. The
director may levy assessments under this division for any amount due
when an elective coverage agreement has been in effect for less than
two complete calendar years. Chapter 7 (commencing with Section
1701), relating to the collection of amounts due, shall apply to this
section.
(f) No benefits shall be paid to any individual based on elective
coverage income credits in his or her base period if his or her
elective coverage agreement has been terminated under paragraph (6)
of subdivision (a) of Section 704.1.
(g) No benefits shall be paid to any individual based upon
remuneration deemed to have been received pursuant to this section
unless all contributions due with respect to all remuneration deemed
to have been received by that individual pursuant to this section
have been paid to the department.
(h) Notwithstanding subdivision (b) of Section 2627, no benefits
shall be paid to any individual covered under this section, with
respect to periods of disability commencing on or after January 1,
1994, until he or she has been unemployed and disabled for a waiting
period of seven consecutive days during each disability benefit
period.
(i) Notwithstanding Section 2653, with respect to periods of
disability commencing on or after January 1, 1994, the maximum amount
of benefits payable to an individual covered under this section
during any one disability benefit period shall be 39 times his or her
weekly benefit amount, but in no case shall the total amount of
benefits payable be more than the total wages credited to the
individual during his or her disability base period. If the benefit
is not a multiple of one dollar ($1), it shall be computed to the
next higher multiple of one dollar ($1).
(j) For purposes of this section, Internal Revenue Service
Schedule SE is defined as Internal Revenue Service Form 1040 Schedule
SE, or in the case of statutory employees under the Internal Revenue
Code, it shall be defined as Internal Revenue Service Form 1040
Schedule C, or the California Income Tax Return, when accompanied by
Internal Revenue Service Form W-2.