2011 California Code
Unemployment Insurance Code
DIVISION 1. UNEMPLOYMENT AND DISABILITY COMPENSATION [100 - 4751]
ARTICLE 8. Assessments
Section 1128.1
(a) If the director finds that an individual or business entity has exchanged money on behalf of an employer and the employer used the cash proceeds from the exchange to conceal the payment of wages with an intent to evade any provision of this code, the director shall assess a penalty against the individual or business entity in an amount equal to 100 percent of any assessed contributions that were based on the concealed wages. An employing unit subject to a penalty under Section 1128 shall not be assessed a penalty under this section for the same violation.
(b) For purposes of this section, business entity means a partnership, corporation, association, limited liability company, or Indian tribe (as described by subsection (u) of Section 3306 of Title 26 of the United States Code).
(c) The penalty shall apply only when there is evidence that the individual or business entity who exchanged money knew that the employer intended to use the cash proceeds from the exchange to conceal the payment of wages and thereby avoid the payment of contributions or taxes required by this code.
(Amended by Stats. 2001, Ch. 255, Sec. 13. Effective January 1, 2002. Applicable from December 21, 2000, pursuant to Sec. 17 of Ch. 255.)
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