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Article 9. Refunds And Overpayments of California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 9.
If, by reason of an employee receiving wages from more than
one employer during any calendar year, the wages received by him or
her during such year exceed the remuneration upon which contributions
are payable under Section 985, and the sum of the amount of tax
imposed by Section 984 plus the amount of contributions under Section
3260 deducted from such wages exceeds the amount required under this
division, the employee is entitled to a refund or credit of the
amount of the excess.
(a) Except as provided by subdivision (c) of this section,
refunds and credits under Section 1176 shall be claimed pursuant to
Section 17061 of the Revenue and Taxation Code on the personal income
tax return of the claimant for the year in which the wages in excess
of the applicable limitation are received. In no event shall the
credit or refund be made unless the claim is made on a return filed
within three years from the last day prescribed for filing the
return, without regard to any extensions. The director shall transfer
from the Disability Fund to the General Fund an amount equal to the
amount of credits and refunds allowed by the Franchise Tax Board
pursuant to Section 17061 of the Revenue and Taxation Code.
(b) If the Franchise Tax Board disallows an individual's claim filed pursuant to subdivision (a), he or she may file a protest and submit the claim to the director within 30 days of the date of mailing of the notice of disallowance by the Franchise Tax Board. An additional 30 days for the filing of the protest may for good cause be granted by the director.
(c) If any individual is not required to file a personal income tax return for a year with the Franchise Tax Board, he or she may, within three years after the calendar year in which the wages in excess of the applicable limitation are received, file a claim for refund or credit under Section 1176 with the director.
(d) The director shall make refunds from the Disability Fund if he or she allows a claim under this section. The provisions of Sections 1180, 1222, 1223, 1224, 1241, and 1242 shall apply whenever the director denies any claim for refund or credit under this section or affirms the disallowance of a claim for refund or credit by the Franchise Tax Board.
(b) If the Franchise Tax Board disallows an individual's claim filed pursuant to subdivision (a), he or she may file a protest and submit the claim to the director within 30 days of the date of mailing of the notice of disallowance by the Franchise Tax Board. An additional 30 days for the filing of the protest may for good cause be granted by the director.
(c) If any individual is not required to file a personal income tax return for a year with the Franchise Tax Board, he or she may, within three years after the calendar year in which the wages in excess of the applicable limitation are received, file a claim for refund or credit under Section 1176 with the director.
(d) The director shall make refunds from the Disability Fund if he or she allows a claim under this section. The provisions of Sections 1180, 1222, 1223, 1224, 1241, and 1242 shall apply whenever the director denies any claim for refund or credit under this section or affirms the disallowance of a claim for refund or credit by the Franchise Tax Board.
Except as provided by subdivision (b) of Section 1178, if the
director determines that any amount of contributions, penalty or
interest has been erroneously or illegally collected he shall set
forth on the records of the department the amount collected in excess
of the amount legally due and the name of the employing unit or
other person by whom it was paid and shall refund the amount to the
employing unit or other person by whom it was paid if the amount does
not include refundable worker contributions. If refundable worker
contributions are involved and a claim has not already been filed the
director shall give notice to such employing unit or other person of
such amount. The excess amount shall be credited on any amounts then
due from or accrued against the employing unit and the balance shall
be refunded to the employing unit or its successor, administrators
or executors.
(a) If the director determines that an overpayment has been
made to the department by an employing unit or the School Employees
Fund because of a reason specified in this subdivision, and the
amount of the overpayment has been reimbursed to the state by the
federal government pursuant to the federal Workforce Investment Act
of 1998, then the director shall credit the employing unit or the
School Employees Fund with the amount of that overpayment, provided
that the director determines that the overpayment was made because of
one of the following:
(1) An employing unit paid unemployment insurance contributions after December 31, 1974, based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(2) An employing unit paid amounts after December 31, 1975, pursuant to Section 803 of this part, for benefits awarded based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(3) Payments were made by the School Employees Fund after December 31, 1975, to the Unemployment Fund pursuant to Section 821 of this part for benefits awarded based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(b) No overpayment described in subdivision (a) shall be refunded to an employing unit or to the School Employees Fund.
(1) An employing unit paid unemployment insurance contributions after December 31, 1974, based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(2) An employing unit paid amounts after December 31, 1975, pursuant to Section 803 of this part, for benefits awarded based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(3) Payments were made by the School Employees Fund after December 31, 1975, to the Unemployment Fund pursuant to Section 821 of this part for benefits awarded based on wages paid to individuals participating in a public service employment program under the federal Workforce Investment Act of 1998.
(b) No overpayment described in subdivision (a) shall be refunded to an employing unit or to the School Employees Fund.
(a) A claim for refund or credit may be filed with the
director for any overpayment including, but not limited to, amounts
paid subsequent to the filing for record of a certificate under
Section 1703 or the entry of a judgment under Section 1815.
(b) No refund shall be made or credit allowed unless a claim therefor is filed with the director within three years from the last day of the calendar month following the close of the calendar quarter for which the overpayment was made or within six months after assessments made under Article 8 (commencing with Section 1126) of this chapter become final or within 60 days from the date of overpayment, whichever period expires the later, but prior to the expiration of such periods even though no claim is filed the director on his own initiative shall make refunds pursuant to Section 1177 or may allow credits.
(c) No refund of employer or worker contributions, penalties or interest shall be made or credit for worker contributions allowed unless the employing unit conforms, within one year after the allowance of credit or approval of the claim for refund, to authorized regulations with respect to the refund to workers entitled thereto of any money deducted by the employing unit under Section 984.
(d) Following a final decision denying a petition for reassessment pursuant to Article 11 (commencing with Section 1221), the employing unit or other person which was a party to the petition may file a claim for refund upon payment of the amount of the assessment, including interest and penalties, and thereafter may pursue all administrative and judicial review rights accorded in Article 11 (commencing with Section 1221) and Article 12 (commencing with Section 1241).
(e) No refund of employer contributions paid pursuant to Section 976.5 shall be made unless the payment is made by an employer described in subdivision (c) of Section 976.5, or the amount paid is less than or exceeds the amount needed to change the employer's contribution rate. Refunds permitted under this subdivision shall be considered an undesignated payment and allocated according to subdivision (b) of Section 1110.1.
(b) No refund shall be made or credit allowed unless a claim therefor is filed with the director within three years from the last day of the calendar month following the close of the calendar quarter for which the overpayment was made or within six months after assessments made under Article 8 (commencing with Section 1126) of this chapter become final or within 60 days from the date of overpayment, whichever period expires the later, but prior to the expiration of such periods even though no claim is filed the director on his own initiative shall make refunds pursuant to Section 1177 or may allow credits.
(c) No refund of employer or worker contributions, penalties or interest shall be made or credit for worker contributions allowed unless the employing unit conforms, within one year after the allowance of credit or approval of the claim for refund, to authorized regulations with respect to the refund to workers entitled thereto of any money deducted by the employing unit under Section 984.
(d) Following a final decision denying a petition for reassessment pursuant to Article 11 (commencing with Section 1221), the employing unit or other person which was a party to the petition may file a claim for refund upon payment of the amount of the assessment, including interest and penalties, and thereafter may pursue all administrative and judicial review rights accorded in Article 11 (commencing with Section 1221) and Article 12 (commencing with Section 1241).
(e) No refund of employer contributions paid pursuant to Section 976.5 shall be made unless the payment is made by an employer described in subdivision (c) of Section 976.5, or the amount paid is less than or exceeds the amount needed to change the employer's contribution rate. Refunds permitted under this subdivision shall be considered an undesignated payment and allocated according to subdivision (b) of Section 1110.1.
Every claim for refund or credit shall be in writing and
shall state the specific grounds upon which the claim is founded. A
waiver of any demand against the state or the director on account of
overpayment shall apply when any of the following occur:
(a) Failure to file a claim with the director within the time prescribed by Section 1178.
(b) Failure, after denial of a claim by the director, to file a petition for review with an administrative law judge within the time prescribed by Section 1222.
(c) Failure to file an appeal from an adverse administrative law judge's decision to the appeals board within the time prescribed by Section 1224.
(a) Failure to file a claim with the director within the time prescribed by Section 1178.
(b) Failure, after denial of a claim by the director, to file a petition for review with an administrative law judge within the time prescribed by Section 1222.
(c) Failure to file an appeal from an adverse administrative law judge's decision to the appeals board within the time prescribed by Section 1224.
If an employing unit pays the amount of contributions,
penalties, and interest assessed under Article 8 (commencing with
Section 1126) of Chapter 4 of Part 1 of this division:
(a) Before an administrative law judge issues his decision upon a petition for reassessment filed on such assessment, the payment shall constitute the filing of a claim for refund, the claim for refund shall be deemed denied by the director, and the petition for reassessment shall automatically become a petition to review a denial of the claim for refund.
(b) Before the appeals board issues its decision upon an appeal from the administrative law judge's decision on a petition for reassessment, the payment shall constitute the filing of a claim for refund, the claim shall be deemed denied by the director, the denial shall be deemed affirmed by the administrative law judge, and the appeal shall automatically become an appeal from an administrative law judge's decision upholding the director's denial of the claim for refund.
(a) Before an administrative law judge issues his decision upon a petition for reassessment filed on such assessment, the payment shall constitute the filing of a claim for refund, the claim for refund shall be deemed denied by the director, and the petition for reassessment shall automatically become a petition to review a denial of the claim for refund.
(b) Before the appeals board issues its decision upon an appeal from the administrative law judge's decision on a petition for reassessment, the payment shall constitute the filing of a claim for refund, the claim shall be deemed denied by the director, the denial shall be deemed affirmed by the administrative law judge, and the appeal shall automatically become an appeal from an administrative law judge's decision upholding the director's denial of the claim for refund.
The director shall give notice pursuant to Section 1206 to
the claimant whenever he or she denies any claim for refund or credit
in whole or in part.
No claim for refund of amounts paid pursuant to Section
1870 may be filed.
(a) If the director finds that a claim for refund or credit
or portion thereof, including a claim deemed made and denied
pursuant to subdivision (a) of Section 1179.5, has been erroneously
denied, he or she may reverse the denial of the claim or portion
thereof in the following cases:
(1) Where no petition for review of denial of the claim has been filed or deemed filed, if the reversal is made prior to the expiration of the period within which a petition for review may be filed under Section 1222.
(2) Where a petition for review of denial of the claim is filed or deemed filed, if the reversal is made prior to the mailing of a decision by the administrative law judge.
(b) The director shall give notice pursuant to Section 1206 of the reversal of an erroneous denial of a claim or portion thereof under this section. With respect to that portion of any such claim which remains denied by the director, the notice of reversal shall also constitute a notice of denial of such portion and Sections 1222, 1223, 1224, 1241, and 1242 shall apply.
(1) Where no petition for review of denial of the claim has been filed or deemed filed, if the reversal is made prior to the expiration of the period within which a petition for review may be filed under Section 1222.
(2) Where a petition for review of denial of the claim is filed or deemed filed, if the reversal is made prior to the mailing of a decision by the administrative law judge.
(b) The director shall give notice pursuant to Section 1206 of the reversal of an erroneous denial of a claim or portion thereof under this section. With respect to that portion of any such claim which remains denied by the director, the notice of reversal shall also constitute a notice of denial of such portion and Sections 1222, 1223, 1224, 1241, and 1242 shall apply.
Interest shall be allowed and paid only to the extent that
interest and penalties collected under this division are available
therefor upon any overpayment of contributions at the adjusted rate
per month, or fraction thereof, established pursuant to Section 19521
of the Revenue and Taxation Code, from the date of overpayment to
the date of the allowance of the refund or credit, but no interest
shall be allowed if the director determines that any overpayment was
made intentionally or by reason of negligence on the part of the
employing unit.
If any refund or portion thereof is erroneously made, the
director shall assess that amount to the employing unit or other
person to whom the refund was made, together with any interest paid
thereon, but no assessment shall be made with respect to any amount
of worker contributions which the employer has refunded to his or her
employees. The amount of the assessment shall bear interest at the
adjusted annual rate and by the method established pursuant to
Section 19521 of the Revenue and Taxation Code commencing 30 days
after the service of notice of the assessment, if not paid within
that period, until the date of repayment. The director shall give the
employing unit against whom the assessment is made a written notice
of the assessment pursuant to Section 1206.
The notice shall be given within three years from the date the
refund was made unless the employing unit waives this limitation
period or consents to its extension. Sections 1135, 1136, 1222, 1223,
and 1224 shall apply to assessments made under this section. The
director shall collect the amount of any assessment made under this
section in the same manner that other assessments are collected.
The director, in collaboration with the Franchise Tax Board,
shall do all of the following:
(a) Identify taxpayers who have overpaid disability insurance contributions in any or all tax years from January 1, 1993, to December 31, 1995, inclusive, and have not received refunds due to them. For purposes of this subdivision, "taxpayers" means any individual who filed a FTB Form 540A or 540EZ.
(b) (1) By October 15, 1997, credit the taxpayers identified in this subdivision with the amount of any overpaid disability insurance pursuant to Section 17061 of the Revenue and Taxation Code. If the amount credited pursuant to this subdivision exceeds any amount then due from the taxpayer, the difference shall be refunded to the taxpayer. For taxable years 1993, 1994, and 1995, inclusive, interest, at the rate established pursuant to Section 19521 of the Revenue and Taxation Code, shall accrue from April 15 of the tax year following the overpayment to a date preceding the date of the refund warrant by not more than 30 days.
(2) Identify and refund overpayments, with interest, to those taxpayers who have overpaid disability insurance contributions, and who have not claimed refunds due to them.
(3) Interest on overpayments of disability insurance contributions shall be allowed and paid pursuant to Sections 19340 and 19341 of the Revenue and Taxation Code.
(4) For purposes of Section 19340 of the Revenue and Taxation Code, any overpayment of disability insurance contributions shall be deemed to have been paid on the last day prescribed for filing the return under Article 1 (commencing with Section 18501) or Article 2 (commencing with Section 18601) of Chapter 2 of Part 10.2 of the Revenue and Taxation Code without regard to any extension of time for filing the return with respect to which the overpayment is allowable as a credit under Section 17061 of the Revenue and Taxation Code.
(a) Identify taxpayers who have overpaid disability insurance contributions in any or all tax years from January 1, 1993, to December 31, 1995, inclusive, and have not received refunds due to them. For purposes of this subdivision, "taxpayers" means any individual who filed a FTB Form 540A or 540EZ.
(b) (1) By October 15, 1997, credit the taxpayers identified in this subdivision with the amount of any overpaid disability insurance pursuant to Section 17061 of the Revenue and Taxation Code. If the amount credited pursuant to this subdivision exceeds any amount then due from the taxpayer, the difference shall be refunded to the taxpayer. For taxable years 1993, 1994, and 1995, inclusive, interest, at the rate established pursuant to Section 19521 of the Revenue and Taxation Code, shall accrue from April 15 of the tax year following the overpayment to a date preceding the date of the refund warrant by not more than 30 days.
(2) Identify and refund overpayments, with interest, to those taxpayers who have overpaid disability insurance contributions, and who have not claimed refunds due to them.
(3) Interest on overpayments of disability insurance contributions shall be allowed and paid pursuant to Sections 19340 and 19341 of the Revenue and Taxation Code.
(4) For purposes of Section 19340 of the Revenue and Taxation Code, any overpayment of disability insurance contributions shall be deemed to have been paid on the last day prescribed for filing the return under Article 1 (commencing with Section 18501) or Article 2 (commencing with Section 18601) of Chapter 2 of Part 10.2 of the Revenue and Taxation Code without regard to any extension of time for filing the return with respect to which the overpayment is allowable as a credit under Section 17061 of the Revenue and Taxation Code.
