DE 231TE Rev. 1 (5-16) (INTERNET) Page 17 of 17 CU
Endnotes
1
Employers who have elected the “cost of benefits method” (i.e., “reimbursable method”) of financing Unemployment
Insurance Fund or who have a negative reserve account balance are not required to contribute to the Employment
Training Tax Fund.
2
Subject if employer and employee voluntarily agree to withhold California Personal Income Tax.
3
Not subject if all three of the following conditions are met:
a) The individual has the required license to perform the services or is in the business of in-person
demonstration and sales presentation of consumer products in the home.
b) Substantially all payments are directly related to sales or other output rather than the number of hours worked.
c) Services are performed pursuant to a written contract that provides the individual will not be treated as an
employee with respect to those services for state tax purposes.
4
Services are included if the employer’s principal place of business in the United States is in California or if the
employer has no place of business in the United States but:
a) The employer is an individual who is a resident of California; or
b) The employer is a corporation or limited liability company, which is organized under the laws of California; or
c) The employer is a partnership or a trust and the number of partners or trustees who are residents of California
is greater than the number who are residents of any one other state.
If none of the criteria above applies, but the employer has elected coverage in California or the employer has not
elected coverage in any state and an individual has filed for benefits in California, based on such service.
5
Not subject if service is performed under written contract with all of the following provisions:
a) Any federal or state income tax liability shall be the responsibility of the party providing the services.
b) No disability insurance coverage is provided under the contract.
c) The party performing the services certifies that he or she is doing so as a secondary occupation or
as a supplemental source of income.
6
As referenced in Section 608 of the CUIC, “employment” excludes services performed by a nonresident alien for
the period temporarily in the U.S. as a nonimmigrant pursuant to Section 3306(c)(19) of the IRC.
7
Full-time student – enrolled full-time for the current term of an academic year or, if between terms, for the
immediately preceding period with a reasonable assurance of enrollment in the immediately subsequent
period.
8
Organized camp – offers outdoor group living experience for social, spiritual, educational, or recreational purposes;
must not operate more than seven months a year, or at least two-thirds of its previous yearly gross income must
have been in any six of the 12 months of the year.
9
An elected official is not eligible to collect Unemployment Insurance benefits based on income earned from his
or her service as an elected official.
Note: A registered domestic partner means an individual partner in a domestic relationship within the meaning of
Section 297 of the Family Code.
The California Unemployment Insurance Code is available online at www.leginfo.ca.gov/calaw.html.
ADDITIONAL INFORMATION
For further assistance, please contact the Taxpayer Assistance Center at 888-745-3886 or visit your local
Employment Tax Office listed in the California Employer’s Guide (DE 44) and on the EDD website at
www.edd.ca.gov/Office_Locator/. Additional information is also available through the EDD no-fee
payroll tax seminars and online courses. View the in-person and online course offerings on the EDD
website at http://www.edd.ca.gov/Payroll_Tax_Seminars/.
The EDD is an equal opportunity employer/program. Auxiliary aids and services are available upon
request to individuals with disabilities. Requests for services, aids, and/or alternate formats need to be
made by calling 888-745-3886 (voice) or TTY 800-547-9565.
This information sheet is provided as a public service and is intended to provide nontechnical assistance. Every attempt has been made to
provide information that is consistent with the appropriate statutes, rules, and administrative and court decisions. Any information that is
inconsistent with the law, regulations, and administrative and court decisions is not binding on either the Employment Development Department
or the taxpayer. Any information provided is not intended to be legal, accounting, tax, investment, or other professional advice.