(a) Tax Withholding--The Plan Administrator shall have full authority to determine and withhold any and all taxes that are or may be due from all amounts contributed or paid under the Plan (including but not limited to income and payroll taxes), to pay them to the appropriate government agency, and to file and distribute necessary or appropriate tax reports and forms.(b) Agent for Paying Taxes--The state, each affected school employer, and each affected contracting agency hereby designate the Plan Administrator as its agent for purposes of paying taxes and filing such forms and returns as are required by the Internal Revenue Service and any other tax agency with respect to benefits paid from this plan. The state, each affected school employer, and each affected contracting agency shall execute and file such forms and other documents as are deemed necessary or appropriate by the Plan Administrator in connection with this designation.(c) Payment of OASDI and HI Taxes by Employers, Participants and Other Recipients. (1) The state, applicable school employers, applicable contracting agencies, Participants and Other Recipients shall promptly pay to the Plan Administrator amounts equal to such OASDI and HI Taxes that the Plan Administrator determines are due from them with respect to benefits paid from this Plan. Amounts paid under this Subsection 589.5(c)(1) shall be held in a special tax escrow account until paid and shall not be held in the Replacement Benefit Custodial Fund.(2) The Plan Administrator shall determine the amount of OASDI and HI taxes due with respect to any Participant or Other Recipient pursuant to applicable Treasury Regulations, and shall do the following:(A) invoice the state, the school employer, or contracting agency, as appropriate, for the full amount of the employer taxes due on benefits payable with respect to applicable Participants and Other Recipients from this Plan,(B) collect the employer OASDI and HI Taxes due from such employer prior to the payment of any benefits under this Plan to the Participant or Other Recipient,(C) collect the employee taxes due from the Participant or Other Recipient from benefits payable from this Plan prior to payment of any such benefits, and(D) as agent of the state, school employer, or contracting agency, pay such taxes and file such forms and returns as directed by the Internal Revenue Service.Cal. Code Regs. Tit. 2, § 589.5
1. New section filed 1-25-2001; operative 1-25-2001 pursuant to Government Code section 11343.4(c). Submitted to OAL for printing only (Register 2001, No. 4).
2. Amendment of subsections (b), (c)(1), (c)(2)(A) and (c)(2)(D) filed 11-18-2002; operative 12-18-2002. Submitted to OAL for printing only pursuant to Government Code section 21760 (Register 2002, No. 47). Note: Authority cited: Sections 20120, 20121 and 21760, Government Code. Reference: Section 21757, Government Code.
1. New section filed 1-25-2001; operative 1-25-2001 pursuant to Government Code section 11343.4(c). Submitted to OAL for printing only (Register 2001, No. 4).
2. Amendment of subsections (b), (c)(1), (c)(2)(A) and (c)(2)(D) filed 11-18-2002; operative 12-18-2002. Submitted to OAL for printing only pursuant to Government Code section 21760 (Register 2002, No. 47).