California 2023-2024 Regular Session Status: In Committee Bipartisan · 2 R · 2 D cosponsors

SB 375 — Employment: employer contributions: employee withholdings: COVID-19 regulatory compliance credit.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Summary

The Personal Income Tax Law imposes taxes on taxable income, as provided. Under existing law, 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, is required to deduct and withhold from those wages, except as provided, for each payroll, a tax computed in an amount substantially equivalent to the amount reasonably estimated to be due under the Personal Income Tax Law. Under existing law, every employer required to withhold those taxes is required to, for each calendar quarter, file a withholding report, a quarterly return, and a report of wages in a form prescribed by the Employment Development Department, and pay over the taxes required to be withheld. This bill would authorize an employer to claim, for the 2023 and 2024 calendar years, a COVID-19 regulatory compliance credit in a specified amount. The bill would require the credit to be claimed on the employer's last quarterly return, as described, for the relevant calendar year. The bill would require any amount claimed by an employer to be credited against employee personal income tax withholding amounts required to be remitted to the department for the last quarter of the relevant calendar year. This bill would provide that its provisions do not change the amount of personal income taxes required to be withheld from employees and required to be reported to the employee, the department, the Franchise Tax Board, and the Internal Revenue Service. The bill would specify that its provisions do not require additional taxes to be paid by the employee or otherwise alter the employee's tax liability under the Personal Income Tax Law. The bill would state that it is the intent of the Legislature that the operation of the bill's provisions not require an appropriation of moneys by reducing moneys remitted by the employer to the department that would otherwise be deposited in the General Fund. This bill would authorize the department to adopt rules and regulations that are necessary or appropriate to implement the bill. The bill would repeal its provisions on December 1, 2025.

Bill Text

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Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. May 18 hearing: Held in committee and under submission.

  3. Set for hearing May 18.

  4. May 8 hearing: Placed on APPR suspense file.

  5. Set for hearing May 8.

  6. From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1. Page 897.) (April 26). Re-referred to Com. on APPR.

  7. Set for hearing April 26.

  8. Referred to Com. on L., P.E. & R.

  9. From printer. May be acted upon on or after March 12.

  10. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 117 not signed on

Sponsors (1)

Co-sponsors (4)

Not signed on (117)

117 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor
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Frequently asked questions

What does SB 375 do?
The Personal Income Tax Law imposes taxes on taxable income, as provided. Under existing law, 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, is required to deduct and withhold from those wages, except as provided, for each payroll, a tax computed in an amount substantially equivalent to the amount reasonably estimated to be due under the Personal Income Tax Law. Under existing law, every employer required to withhold those taxes is required to, for each calendar quarter, file a withholding report, a quarterly return, and a report of wages in a form prescribed by the Employment Development Department, and pay over the taxes required to be withheld. This bill would authorize an employer to claim, for the 2023 and 2024 calendar years, a COVID-19 regulatory compliance credit in a specified amount. The bill would require the credit to be claimed on the employer's last quarterly return, as described, for the relevant calendar year. The bill would require any amount claimed by an employer to be credited against employee personal income tax withholding amounts required to be remitted to the department for the last quarter of the relevant calendar year. This bill would provide that its provisions do not change the amount of personal income taxes required to be withheld from employees and required to be reported to the employee, the department, the Franchise Tax Board, and the Internal Revenue Service. The bill would specify that its provisions do not require additional taxes to be paid by the employee or otherwise alter the employee's tax liability under the Personal Income Tax Law. The bill would state that it is the intent of the Legislature that the operation of the bill's provisions not require an appropriation of moneys by reducing moneys remitted by the employer to the department that would otherwise be deposited in the General Fund. This bill would authorize the department to adopt rules and regulations that are necessary or appropriate to implement the bill. The bill would repeal its provisions on December 1, 2025.
Who sponsors SB 375?
SB 375 is sponsored by Alvarado-Gil, Marie (Republican), Dodd, Jones, Brian W. (Republican), Umberg, Thomas J. (Democratic), and Nguyen, Stephanie (Democratic).
What is the current status of SB 375?
This bill died with 2023-2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 375?
Track SB 375 free on One Click Politics — get push/email alerts when it moves.

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