“Wages” means all remuneration, other than fees paid to a public official, for services performed by an employee for their employer, including all remuneration paid to a nonresident employee for services performed in this state, and the cash value of all remuneration paid in any medium other than cash, except as provided by this section. “Wages” includes tips received by an employee in the course of employment. The wages shall be deemed to be paid at the time a written statement including tips is furnished to the employer pursuant to Section 13055 or, if no statement including those tips is so furnished, at the time received. “Wages” includes compensation, that is deductible under Section 162 of the Internal Revenue Code, paid to a member of a limited liability
company filing a federal corporate income tax return.
“Wages” shall not include remuneration paid under any of the following conditions:
(a)
For agricultural labor, as defined in subdivision (g) of Section 3121 of the Internal Revenue Code.
(b)
For domestic service in a private home, local college club, or local chapter of a college fraternity or sorority.
(c)
For service not in the course of the employer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for that service is fifty dollars ($50) or more and the service is performed by an individual who is regularly employed by the employer to perform the service. For
purposes of this subdivision, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if either of the following conditions is met:
(1)
On each of some 24 days during the quarter, the individual performs for the employer for some portion of the day service not in the course of the employer’s trade or business.
(2)
The individual was regularly employed, as determined under paragraph (1), by the employer in the performance of the service during the preceding calendar quarter.
(d)
For services by a citizen or resident of the United States for a foreign government or an international organization.
(e)
For
services performed by a nonresident individual who is not a citizen or national of the United States as designated by regulations prescribed by the department.
(f)
For services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of their ministry or by a member of a religious order in the exercise of duties required by the order.
(g)
(1)
For services performed by an individual under the age of 18 years in delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.
(2)
For services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate
consumers, under an arrangement under which the newspapers or magazines are to be sold by the individual at a fixed price, the individual’s compensation being based on the retention of the excess of the price over the amount at which the newspapers or magazines are charged to the individual whether or not the individual is guaranteed a minimum amount of compensation for the services, or is entitled to be credited with the unsold newspapers or magazines turned back.
(h)
For services not in the course of the employer’s trade or business, to the extent paid in any medium other than cash.
(i)
To, or on behalf of, an employee or their beneficiary under any of the following situations:
(1)
From or to a trust which is
exempt from tax under Section 17631 of the Revenue and Taxation Code at the time of payment, unless the payment is made to an employee of the trust as remuneration for services rendered as an employee and not as a beneficiary of the trust.
(2)
Under or to an annuity plan which, at the time of payment, is a plan qualified pursuant to Chapter 5 (commencing with Section 17501) of Part 10 of Division 2 of the Revenue and Taxation Code.
(3)
Under or to a bond purchase plan which, at the time of payment, is a bond purchase plan qualified pursuant to Chapter 5 (commencing with Section 17501) of Part 10 of Division 2 of the Revenue and Taxation Code.
(4)
For a payment which qualifies for deduction by an employee pursuant
to Section 219 of the Internal Revenue Code if, at the time of payment, it is reasonable to believe that the employee will be entitled to a deduction under that section for payment.
(5)
Under a cafeteria plan (within the meaning of Section 125 of the Internal Revenue Code).
(j)
To a master, officer, or any other seaman who is a member of a crew on a vessel engaged in foreign, coastwise, intercoastal, interstate, or noncontiguous trade.
(k)
Pursuant to any provision of law other than Section 5(c) of the Peace Corps Act (22 U.S.C. Sec. 2504(c)) or 6(1) of the Peace Corps Act (22 U.S.C. Sec. 2505(1)), for service performed as a volunteer or volunteer leader within the meaning of that act.
(
l
)
In the form of group-term life insurance on the life of an employee.
(m)
To or on behalf of an employee, and to the extent that, at the time of the payment of remuneration it is reasonable to believe that a corresponding deduction is allowable for moving expenses pursuant to Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 of Division 2 of the Revenue and Taxation Code.
(n)
(1)
As tips in any medium other than cash.
(2)
As cash tips to an employee in any calendar month in the course of employment by an employer, unless the amount of the cash tips is twenty dollars ($20) or more.
(o)
For service performed by an
individual on a boat engaged in catching fish or other forms of aquatic animal life under an arrangement with the owner or operator of the boat pursuant to which all of the following apply:
(1)
The individual does not receive any cash remuneration, other than as provided in paragraph (2).
(2)
The individual receives a share of the boat’s (or the boats’ in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic animal life or a share of the proceeds from the sale of the catch.
(3)
The amount of the individual’s share depends on the amount of the boat’s (or the boats’ in the case of a fishing operation involving more than one boat) catch of fish or other forms of aquatic
animal life.
This subdivision shall apply only where the operating crew of the boat (or each boat from which the individual receives a share in the case of a fishing operation involving more than one boat) is normally made up of fewer than 10 individuals.
(p)
For any medical care reimbursement made to, or for the benefit of, an employee under a self-insured medical reimbursement plan pursuant to Section 105(h)(6) of the Internal Revenue Code.
(q)
To, or on behalf of, an employee to the extent not includable in gross income pursuant to Section 13006.
(r)
For services to which Section 633 applies.
