How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tina Your Own Question
Tina
Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33166
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
4460311
Type Your California Employment Law Question Here...
Tina is online now
A new question is answered every 9 seconds

Are CA employers required to pay additional Unemployment taxes if their reserve accounts a

Customer Question

Are CA employers required to pay additional Unemployment taxes if their reserve accounts are negative when their only employee files a claim
Submitted: 4 years ago.
Category: California Employment Law
Expert:  Tina replied 4 years ago.
Hello and welcome,

A negative balance in the reserve account typically indicates that the employer's rate has been too low to support claims made against the account. Therefore, the agency will normally increase the employer's UI contribution rate where a negative balance is indicated in the employer's reserve account.

Here is a link that explains contribution calculations:

http://www.edd.ca.gov/pdf_pub_ctr/de2088c.pdf

I hope you found my answer helpful, even if the law is not in your favor; please click on the GREEN ACCEPT button above for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous. Thank you.

Customer: replied 4 years ago.
We have only had the 1 employee in CA for about 2 months and believe that we will need to lay her off soon. Since we have not filed our first return and paid the tax, obviously we would not have a positive reserve account if she is determined to be eligible for unemployment. At this time, we do not anticipate hiring any additional CA employees to report and file tax. Can CA require us to pay into the account to cover her claim if we no longer have CA employees?
Expert:  Tina replied 4 years ago.
The tax is typically stated as a rate payable on employee earnings, so if there are no earnings, there would normally be no tax to pay until there are earnings to report.

All the best to you!




Please remember to press the ACCEPT button even if you have a subscription plan so I will be credited for my time by Justanswer.com. If you do not press ACCEPT, the website retains your payment and I receive nothing. A Bonus is always appreciated. Thanks again.

Tina and other California Employment Law Specialists are ready to help you
Customer: replied 4 years ago.

Thank you!

Expert:  Tina replied 4 years ago.
You are very welcome and take care.

Related California Employment Law Questions