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Article 1. Priority And Lien Of Tax of California Unemployment Insurance Code >> Division 1. >> Part 1. >> Chapter 7. >> Article 1.
The wage earner and employer contributions required to be
paid by any employing unit under this division, together with
interest and penalties, shall be satisfied first in any of the
following cases:
(a) Whenever the employing unit is insolvent.
(b) Whenever the employing unit makes a voluntary assignment of its assets.
(c) Whenever the estate of the employing unit in the hands of the executors, administrators, or heirs is insufficient to pay all the debts due from the deceased.
(d) Whenever the estate and effects of an absconding, concealed, or absent employing unit required to pay any amount under this division are levied upon by process of law.
(a) Whenever the employing unit is insolvent.
(b) Whenever the employing unit makes a voluntary assignment of its assets.
(c) Whenever the estate of the employing unit in the hands of the executors, administrators, or heirs is insufficient to pay all the debts due from the deceased.
(d) Whenever the estate and effects of an absconding, concealed, or absent employing unit required to pay any amount under this division are levied upon by process of law.
Section 1701 does not give the state a preference over any
lien or security interest which was recorded or perfected prior to
the time when the state records or files its lien as provided in
Section 7171 of the Government Code. The preference given to the
state by Section 1701 is subordinate to the preferences given to
claims for personal services by Sections 1204 and 1206 of the Code of
Civil Procedure.
(a) If any employing unit or other person fails to pay any
amount imposed under this division at the time that it becomes due
and payable, the amount thereof, including penalties and interest,
together with any costs, shall be a perfected and enforceable state
tax lien. This lien is subject to Chapter 14 (commencing with Section
7150) of Division 7 of Title 1 of the Government Code.
(b) For purposes of this section, amounts are "due and payable" on the following dates:
(1) For amounts disclosed on a return or report received by the director, the date of the notice by the director to the taxpayer of the amount due.
(2) For penalties imposed pursuant to Sections 1112.5, 1114, and 13052.5, the date of the notice by the director to the taxpayer of the amount due.
(3) For any amounts reestablished under Section 1875, the date of the written notice of rescission provided under subdivision (c) of that section.
(4) For all other amounts, the date the assessment is final.
(c) The lien provided by this section shall not arise during any period that Section 362 of the United States Bankruptcy Code applies to the employing unit or other person against whom the lien would otherwise apply.
(b) For purposes of this section, amounts are "due and payable" on the following dates:
(1) For amounts disclosed on a return or report received by the director, the date of the notice by the director to the taxpayer of the amount due.
(2) For penalties imposed pursuant to Sections 1112.5, 1114, and 13052.5, the date of the notice by the director to the taxpayer of the amount due.
(3) For any amounts reestablished under Section 1875, the date of the written notice of rescission provided under subdivision (c) of that section.
(4) For all other amounts, the date the assessment is final.
(c) The lien provided by this section shall not arise during any period that Section 362 of the United States Bankruptcy Code applies to the employing unit or other person against whom the lien would otherwise apply.
