Section 1026 Of Article 4. Reserve Accounts From California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 4.
1026
. (a) The director shall maintain a separate reserve account
for each employer, and shall credit each reserve account with all the
contributions paid on his or her behalf.
(b) Unemployment compensation benefits paid to an unemployed
individual during any benefit year shall be charged against the
reserve account of his or her employer during his or her base period.
If the individual performed services in employment for more than one
employer during his or her base period, unemployment compensation
benefits paid to him or her shall be charged against the respective
reserve accounts of the employers in the proportion that the total
wages paid to the individual in employment for each employer bears to
the total wages paid to the individual in employment for all
employers during the base period.
(c) The director shall credit the interest earned by the
Unemployment Fund to each positive reserve employer account in
proportion to the amount the account bears to the total of all
positive reserve accounts.
(d) Except as provided by Sections 803 and 821, in proportion to
the amount each employer's taxable wages bears to the total of all
employers' taxable wages, the director shall credit to each employer
reserve account all of the following:
(1) Benefit overpayments collected in the four quarters prior to
the computation date.
(2) Positive balances in reserve accounts canceled pursuant to
Section 1029.
(3) Other nontax income.
(e) Except as provided by Sections 803 and 821, in the same
proportion as provided in subdivision (d), the director shall charge
to each employer reserve account all of the following:
(1) The increase in the total of all negative reserve account
balances as computed by subtracting the total of all negative reserve
account balances on July 31 of each year prior to the cancellations
required by Section 1027.5 from the total of all negative reserve
account balances on the prior July 31 after the cancellations
required by Section 1027.5, except as provided by Section 1144.
(2) Benefit overpayments established in the four quarters prior to
the computation date.
(3) Benefits not charged to employer reserve accounts pursuant to
Section 1032, 1032.5, 1034, 1035, 1036, 1335, 1338, or 1380.
(4) Other items of expense and benefit charges not included in
active employer reserve accounts.