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 4325-1 - Remuneration Other Than in Cash for Service Performed by Retail Commission Salesperson

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 In General.
(1) An employer, in computing the
					 amount to be deducted and withheld as tax in accordance with Section
					 13020 of the code, may, at his
					 election, disregard any wages paid in a medium other than cash for services
					 performed for him or her by an employee if (A) the noncash remuneration is paid
					 for services performed by the employee as a retail commission salesperson and
					 (B) the employer ordinarily pays the employee remuneration solely by way of
					 cash commissions for services performed by him or her as a retail commission
					 salesperson.
(2) Section
					 13025 of the code and this
					 regulation are not applicable with respect to (A) noncash wages paid to a
					 retail commission salesperson for services performed by him or her in a
					 capacity other than as such a salesperson or (B) noncash wages paid by an
					 employer to an employee for services performed as a retail commission
					 salesperson if the employer ordinarily pays the employee remuneration other
					 than by way of cash commissions for such services. Thus, noncash remuneration
					 may not be disregarded in computing the amount to be deducted and withheld in a
					 case where the employee, for services performed as a retail commission
					 salesperson, is paid both a salary and cash commissions on sales, or is
					 ordinarily paid in something other than cash (stocks, bonds, or other forms of
					 property) notwithstanding that the amount of remuneration paid to the employee
					 is measured by sales.
(3) Retail
					 Commission Salesperson. For purposes of Section
					 13025 of the code and this
					 regulation, the term "retail commission salesperson" includes an employee who
					 is engaged in the solicitation of orders at retail, that is, from the ultimate
					 consumer, for merchandise or other products offered for sale by his or her
					 employer. The term does not include an employee salesperson engaged in the
					 solicitation on behalf of his or her employer of orders from wholesalers,
					 retailers, or others, for merchandise for resale. However, if the salesperson
					 solicits orders for more than one principal, he or she is not excluded from the
					 term solely because he or she solicits orders from wholesalers or retailers on
					 behalf of one or more principals. In such case the salesperson may be a retail
					 commission salesperson with respect to services performed for one or more
					 principals and not with respect to services performed for his or her other
					 principals.
(4) Noncash
					 Remuneration. The term "noncash remuneration" includes remuneration paid in any
					 medium other than cash, such as goods or commodities, stocks, bonds, or other
					 forms of property. The term does not include checks or other monetary media of
					 exchange.