AB 2080

Bill Subjects

Abstract

The Personal Income Tax Law, in modified conformity with federal law, provides various exclusions from gross income in computing tax liability. Existing law requires employers to make specified payments and withholdings from wages paid for employment to, and to file reports of wages and make contributions for unemployment insurance and the employment training tax with, the Employment Development Department, which is charged with administering the state's payroll taxes. This bill would, for taxable years beginning on or after January 1, 2015, exclude tips, as defined, from gross income for the purposes of the Personal Income Tax Law. This bill also would exclude tips from the definition of wages paid for employment for the purposes of income tax withholding and for purposes of unemployment insurance and the employment training tax. This bill would also make related changes to other provisions.