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 4331-1 - Included and Excluded Wages

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If a portion of the remuneration paid by
					 an employer to his or her employee for services performed during a payroll
					 period of not more than 31 consecutive days constitutes wages, and the
					 remainder does not constitute wages, all the remuneration paid the employee for
					 services performed during such period shall for purposes of withholding be
					 treated alike, that is, either all included as wages or all excluded. The time
					 during which the employee performs services, the remuneration for which under
					 Section 13009 of the code constitutes
					 wages, and the time during which he or she performs services, the remuneration
					 for which under such section does not constitute wages, determine whether all
					 the remuneration for services performed during the payroll period shall be
					 deemed to be included or excluded.
(b) If one-half or more of the employee's
					 time in the employ of a particular employer in a payroll period is spent in
					 performing services the remuneration for which constitutes wages then all the
					 remuneration paid the employee for services performed in that payroll period
					 shall be deemed to be wages.
(c) If
					 less than one-half of the employee's time in the employ of a particular
					 employer in a payroll period is spent in performing services the remuneration
					 for which constitutes wages, then none of that remuneration paid the employee
					 for services performed in that payroll period shall be deemed to be
					 wages.
(d) The application of the
					 provisions of subdivision (a), (b), and (c) of this regulation may be
					 illustrated by the following examples:
EXAMPLE (1). Employer B, who operates a store and a farm,
						employs A to perform services in connection with both operations. The
						remuneration paid A for services on the farm is excepted as remuneration for
						agricultural labor, and the remuneration for services performed in the store
						constitutes wages. Employee A is paid on a monthly basis. During the particular
						month, A works 120 hours on the farm and 80 hours in the store. None of the
						remuneration paid by B to A for services performed during the month is deemed
						to be wages, since the remuneration paid for less than one-half of the services
						performed during the month constitutes wages. During another month A works 75
						hours on the farm and 120 hours in the store. All of the remuneration paid by B
						to A for services performed during the month is deemed to be wages since the
						remuneration paid for one-half or more of the services performed during the
						month constitutes wages.
EXAMPLE (2). Employee C is employed as a maid by D, a
						physician, whose home and office are located in the same building. The
						remuneration paid C for services in the home is excepted as remuneration for
						domestic service, and the remuneration paid for C's services in the office
						constitutes wages. C is paid on a weekly basis. During a particular week C
						works 20 hours in the home and 20 hours in the office. All of the remuneration
						paid by D to C for services performed during that week is deemed to be wages,
						since the remuneration paid for one-half or more of the services performed
						during the week constitutes wages. During another week C works 22 hours in the
						home and 15 hours in the office. None of the remuneration paid by D to C for
						services performed during that week is deemed to be wages since the
						remuneration paid for less than one-half of the services performed during the
						week constitutes wages.
(e)
					 The rules set forth in this regulation do not apply (1) with respect to any
					 remuneration paid for services performed by an employee for his or her employer
					 if the periods for which remuneration is paid by the employer vary to the
					 extent that there is no period which constitutes a payroll period within the
					 meaning of Section
					 13008 of the code and Section
					 4308-1 of these regulations, or
					 (2) with respect to any remuneration paid for services performed by an employee
					 for his or her employer if the payroll period for which remuneration is paid
					 exceeds 31 consecutive days. In any such case withholding is required with
					 respect to that portion of such remuneration which constitutes wages.
Note: Authority cited: Sections
						  305
						  and
						  306,
						  Unemployment Insurance Code. Reference: Section
						  13031,
						  Unemployment Insurance Code.