California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 1 - Unemployment and Disability Compensation › Part 1 - Unemployment Compensation › Chapter 7 - COLLECTIONS › Section 1755-7 - Reconsideration or Modification Based Upon Individual or Family Support Needs

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In all cases, the hearing official shall make inquiry
						  to determine if recovery of the tax liability from the debtor's earnings will
						  impose extraordinary hardship upon the debtor or the debtor's family or if the
						  debtor's earnings are needed for his or her support or that of his or her
						  family.
(a) Extraordinary Hardship. If
						the evidence obtained at the hearing establishes that recovery of the tax
						liability from the debtor's earnings will impose extraordinary hardship upon
						the debtor or the debtor's family dependent upon the debtor for support, the
						hearing official shall order the department to withdraw the Earnings
						Withholding Order.
Extraordinary hardship exists if the debtor's average
						  monthly family income for the six months preceding the hearing does not exceed
						  the amount set forth in the director's annual Family Income Level Table set
						  forth in subdivision (b) and the debtor has no liquid or readily convertible
						  asset which may be converted to support the debtor and his or her
						  family.
"Income" for the purpose of this section includes
						  income from all sources.
"Assets" for the purpose of this section includes but
						  is not limited to stocks, bonds, interest in mutual funds, cash and credit or
						  savings accounts, but shall not include the debtor's home and furnishings
						  therein, clothing, tools of the trade, or automobiles needed for the debtor's
						  transportation or that of a family member dependent upon the debtor for his or
						  her support.
(b) Before the
						first day of July of each year, and on the effective date of this regulation,
						the director shall establish a Family Income Level Table as described below.
For the fiscal year beginning July 1, 1983, the table
						  shall be computed by multiplying the average annual low income budget amount as
						  issued by the Employment Development Department for fiscal year July 1982-June
						  1983 ($16,714) by the change in the Consumer Price Index U. S. City Average for
						  Urban Wage Earners and Clerical Workers for the period May 1982-April
						  1983.
The figure obtained shall be multiplied by the
						  percentages in the following table:
Persons in
									 Family
Gross Monthly
									 Income
1
40% of average for family of 4
2
62% of average for family of 4
3
83% of average for family of 4
4
100% of average for family of 4
5
119% of average for family of 4
6
138% of average for family of 4
each additional
19% of average for
								  family of 4
To produce a Family Income Level Table for each fiscal
						  year thereafter, the director shall repeat the process described above, using
						  the estimated low income budget figure for the immediately preceding fiscal
						  year and the change in the above-specified Consumer Price Index for the
						  immediately preceding May-April period.
(c) Tax Debtor or Family Support--General. If
						the evidence does not establish that recovery of the tax liability from his or
						her earnings will result in extraordinary hardship as defined in subdivision
						(a) above, reconsideration or modification of the Earnings Withholding Order
						may be granted only to the extent the debtor proves the debtor's earnings are
						needed for his or her support or the support of his or her family.
In determining if the tax debtor's earnings are needed
						  for the tax debtor's support or the support of his or her family, the hearing
						  official shall give consideration to the debtor's costs for housing, household
						  furnishings, telephone, clothing, food, transportation (including automobile
						  costs), education, medicines, and medical services.
1. New
						  section filed 2-9-81; effective thirtieth day thereafter (Register 81, No.
						  7).
2. Amendment filed 7-6-83; designated effective 7-6-83 pursuant
						  to Government Code Section
						  11346.2(d)
						  (Register 83, No. 28).
3. Change without regulatory effect amending
						  NOTE filed 8-26-96 pursuant to section
						  100, title 1, California Code of
						  Regulations (Register 96, No. 35).
Note: Authority cited: Sections
							 305
							 and
							 306,
							 Unemployment Insurance Code. Reference: Sections
							 1755
							 and
							 1785,
							 Unemployment Insurance Code; and Sections
							 706.070
							 and
							 706.075(c),
							 Code of Civil Procedure.