Bill Text: CA SB1131 | 2013-2014 | Regular Session | Chaptered

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Bill Title: Income taxes: withholding: limited liability company.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-07-10 - Chaptered by Secretary of State. Chapter 122, Statutes of 2014. [SB1131 Detail]

Download: California-2013-SB1131-Chaptered.html

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BILL NUMBER: SB 1131	CHAPTERED
	BILL TEXT

	CHAPTER  122
	FILED WITH SECRETARY OF STATE  JULY 10, 2014
	APPROVED BY GOVERNOR  JULY 10, 2014
	PASSED THE SENATE  MAY 1, 2014
	PASSED THE ASSEMBLY  JUNE 26, 2014

INTRODUCED BY   Senator Walters

                        FEBRUARY 20, 2014

   An act to add Section 13004.6 to the Unemployment Insurance Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1131, Walters. Income taxes: withholding: limited liability
company.
   Existing law requires every employer who pays wages to a resident
employee for services performed either within or without this state,
or to a nonresident employee for services performed in this state, to
deduct and withhold from those wages, except as otherwise provided,
for each payroll period, a tax computed in that manner as to produce
a sum which is substantially equivalent to the amount of tax
reasonably estimated to be due under the Personal Income Tax Law
resulting from the inclusion in the gross income of the employee of
the wages which were subject to withholding.
   This bill would provide that, for purposes of those withholding
laws, an employee does not include any member of a limited liability
company that is treated as a partnership for federal income tax
purposes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13004.6 is added to the Unemployment Insurance
Code, to read:
   13004.6.  "Employee" does not include any member of a limited
liability company that is treated as a partnership for federal income
tax purposes.