Statutes, codes, and regulations
California Code Of Regulations
Title 22 - Social SecurityDivision 1 - Employment Development DepartmentSubdivision 1 - Director of Employment DevelopmentDivision 1 - Unemployment and Disability CompensationPart 1 - Unemployment Compensation
Chapter 7 - COLLECTIONS
Section 1755-7 - Reconsideration or Modification Based Upon Individual or Family Support Needs

Cal. Code Regs. Tit. 22, §§ 1755-7

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Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 1755-7 - Reconsideration or Modification Based Upon Individual or Family Support Needs

In all cases, the hearing official shall make inquiry to determine if recovery of the tax liability from the debtor's earnings will impose extraordinary hardship upon the debtor or the debtor's family or if the debtor's earnings are needed for his or her support or that of his or her family.

(a) Extraordinary Hardship. If the evidence obtained at the hearing establishes that recovery of the tax liability from the debtor's earnings will impose extraordinary hardship upon the debtor or the debtor's family dependent upon the debtor for support, the hearing official shall order the department to withdraw the Earnings Withholding Order.

Extraordinary hardship exists if the debtor's average monthly family income for the six months preceding the hearing does not exceed the amount set forth in the director's annual Family Income Level Table set forth in subdivision (b) and the debtor has no liquid or readily convertible asset which may be converted to support the debtor and his or her family.

"Income" for the purpose of this section includes income from all sources.

"Assets" for the purpose of this section includes but is not limited to stocks, bonds, interest in mutual funds, cash and credit or savings accounts, but shall not include the debtor's home and furnishings therein, clothing, tools of the trade, or automobiles needed for the debtor's transportation or that of a family member dependent upon the debtor for his or her support.

(b) Before the first day of July of each year, and on the effective date of this regulation, the director shall establish a Family Income Level Table as described below.

For the fiscal year beginning July 1, 1983, the table shall be computed by multiplying the average annual low income budget amount as issued by the Employment Development Department for fiscal year July 1982-June 1983 ($16,714) by the change in the Consumer Price Index U. S. City Average for Urban Wage Earners and Clerical Workers for the period May 1982-April 1983.

The figure obtained shall be multiplied by the percentages in the following table:

Persons in Family

Gross Monthly Income

1 40% of average for family of 4
2 62% of average for family of 4
3 83% of average for family of 4
4100% of average for family of 4
5119% of average for family of 4
6138% of average for family of 4
each additional 19% of average for family of 4

To produce a Family Income Level Table for each fiscal year thereafter, the director shall repeat the process described above, using the estimated low income budget figure for the immediately preceding fiscal year and the change in the above-specified Consumer Price Index for the immediately preceding May-April period.

(c) Tax Debtor or Family Support--General. If the evidence does not establish that recovery of the tax liability from his or her earnings will result in extraordinary hardship as defined in subdivision (a) above, reconsideration or modification of the Earnings Withholding Order may be granted only to the extent the debtor proves the debtor's earnings are needed for his or her support or the support of his or her family.

In determining if the tax debtor's earnings are needed for the tax debtor's support or the support of his or her family, the hearing official shall give consideration to the debtor's costs for housing, household furnishings, telephone, clothing, food, transportation (including automobile costs), education, medicines, and medical services.

Cal. Code Regs. Tit. 22, §§ 1755-7

1. New section filed 2-9-81; effective thirtieth day thereafter (Register 81, No. 7).
2. Amendment filed 7-6-83; designated effective 7-6-83 pursuant to Government Code Section 11346.2(d) (Register 83, No. 28).
3. Change without regulatory effect amending NOTE filed 8-26-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 35).

Note: Authority cited: Sections 305 and 306, Unemployment Insurance Code. Reference: Sections 1755 and 1785, Unemployment Insurance Code; and Sections 706.070 and 706.075(c), Code of Civil Procedure.

1. New section filed 2-9-81; effective thirtieth day thereafter (Register 81, No. 7).
2. Amendment filed 7-6-83; designated effective 7-6-83 pursuant to Government Code Section 11346.2(d) (Register 83, No. 28).
3. Change without regulatory effect amending Note filed 8-26-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 35).