California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 2.5 - WITHHOLDING TAX ON WAGES › Chapter 2 - WITHHOLDING AND PAYMENT OF TAX › Section 4328.6-1 - Extension of Withholding of Income Tax to Payment of Sick Pay When Requested by Payee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In
					 General. Under Section
					 13028.6 of the code, the payee (as
					 defined in paragraph (g)(2) of this regulation) may request the payer (as
					 defined in paragraph (g)(3) of this regulation) of the sick pay to withhold
					 income tax with respect to payments of sick pay made on or after July 1, 1986.
					 If such a request is made, the payer shall deduct and withhold as requested in
					 all cases where the payee had filed a similar request for federal purposes
					 pursuant to the provisions of Section
					 3402(o) of the
					 Internal Revenue Code of 1986. Where the payee has not furnished the payer a
					 similar notice for federal purposes, the payer is not required to deduct and
					 withhold personal income tax.
(b)
					 Manner of Making a Request and Amount to Withhold. A payee who wishes a payer
					 to deduct and withhold income tax from sick pay shall file a written request
					 with the payer to deduct and withhold a specific whole dollar amount from each
					 sick pay payment. The payee must include his or her social security account
					 number in the request.
The specific whole dollar amount shall be at least $5 per
						month and shall not reduce the net amount of any sick pay received by the payee
						below $10 per month.
(c)
					 When Request Takes Effect. The payer must deduct and withhold the amount
					 specified in the request with respect to payments made more than seven days
					 after the date on which the request is received by the payer. At the election
					 of the payer, the request may take effect before this.
(d) Duration and Termination of Request. A
					 request under this section shall continue in effect until changed or terminated
					 by payee. The payee may change the request by filing a new written request that
					 meets all the requirements of paragraph (b) of this regulation. The new request
					 shall take effect as specified in paragraph (c) of this regulation and the
					 prior request shall be deemed terminated when the new request takes effect. The
					 payee may terminate the request by furnishing the payer a signed written notice
					 of termination in all cases where the payee has furnished the payer a similar
					 notice for federal purposes pursuant to Section
					 3402(o) of the
					 Internal Revenue Code of 1986. Where the payee has not furnished the payer a
					 similar notice for federal purposes, the payer is not required to terminate the
					 withholding of personal income tax. This written notice of termination shall
					 take effect with respect to payments made more than 7 days after the date on
					 which the notice of termination is received by the payer. At the election of
					 the payer, the request may take effect with respect to any payment made on or
					 after the date on which such notice was received by payer.
(e) Special Rules. For purposes of the
					 Personal Income Tax Law:
(1) An amount which
					 is requested to be withheld pursuant to this section shall be deemed a tax
					 required to be deducted and withheld under Section
					 13020 of the code.
(2) An amount deducted and withheld pursuant
					 to this section shall be deemed an amount deducted and withheld under Section
					 13020 of the code.
(3) The term "wages" includes the gross
					 amount of sick pay payment with respect to which there is in effect a request
					 for withholding under this section.
(4) The term "employer" includes a payer with
					 respect to whom a request for withholding is in effect under this
					 section.
(5) The term "employee"
					 includes a payee with respect to whom a request for withholding is in effect
					 under this section.
(6) The term
					 "payroll period" includes the period of accrual with respect to which payments
					 of sick pay which are subject to withholding under this section are ordinarily
					 made.