Cal. Code Regs. Tit. 22, §§ 926-5

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 926-5 - Taxable Value of Meals and Quarters Received by Fishermen Aboard Fishing Vessels

(a) Meals and quarters received by fishermen aboard fishing vessels shall be taxable on the basis of a reasonably estimated cash value to the employee as determined or approved by the department as hereinafter provided:

(1) Meals. The value of meals may be computed on one of the following bases, at the option of the employer:

(A) The cost of food furnished to or consumed by fishermen shall be equally divided by the number of fishermen to determine the taxable value of meals to each fisherman.

(B) If an employer maintains records in such form as to show the number and kind of meals actually consumed by fishermen the scale as set forth in Section 926-3(a)(2) of these regulations may be applied.

(2) Quarters.

(A) For the calendar year 2011 and thereafter except as modified in accordance with this subdivision, quarters furnished fishermen aboard fishing vessels have a cash value to the employee of $38.70 a week, or $5.50 a day for periods less than a week, where the facilities include the following minimum standards:

1. Living compartment space that normally permits standing erect.

2. Heat, light and ventilation.

3. Gear locker.

4. Head and bathing facilities.

5. Individual bunks or berths with mattresses, assigned to each fisherman.

(B) Quarters which do not meet the above minimum standards have no cash value to the fishermen.

(3) Adjustment of Quarters Values. Whenever the average of residential rent prices in the Los Angeles, San Diego, and San Francisco Metropolitan Areas during the twelve months of any fiscal year ending on June 30 varies from the average of prices during the same months ending on June 30, 1973, by 10 percent or more, according to the residential rent indexes published by the United States Department of Labor, Bureau of Labor Statistics, the director shall by authorized regulation modify the 2011 scale of rates for quarters upward or downward in substantially the same ratio for the ensuing calendar year.

(b) It is immaterial for the purposes of this section that the cost of food consumed aboard fishing vessels is borne by the employer, by the employees or is shared by the employer and employees. The following examples illustrate the computation of taxable wages under two methods of accounting where the employer elects to apply the formula set forth in subdivision (a)(1)(A) of this section. It is assumed that the share for the owner or operator of the vessel is 40 percent and the fishermen's share is 60 percent.

EXAMPLE A. All operating expenses, including the cost of food consumed aboard, are deducted from the gross receipts from sale of the catch. The remainder is divided into two shares, one for the owner or operator of the vessel and the other to be distributed among the fishermen. The fishermen's cash wages plus the total cost of food constitute taxable wages.

Gross proceeds from sale of the catch..........................			$1,000
Less fuel and other operating expenses..........................		$200
Less cost of food..........................		100	300
	700
Less: Owner or operator's share (40 percent)..........................			280
Fishermen's share (60 percent) (cash wages)..........................			420
Add cost of food consumed..........................			100
Total..........................		$520	Taxable
		wages

(i) Taxable wages each person, assuming 5 men with equal shares--$104.

(ii) Taxable wages each person, assuming 5 men, 1 man having 2 shares, and 4 men having 1 share each:

Cash	Add cost of food	Total taxable wages
Fisherman "A"	$140	$20	$160
Fisherman "B"	70	20	90
Fisherman "C"	70	20	90
Fisherman "D"	70	20	90
Fisherman "E"	70	20	90
$420	$100	$520

EXAMPLE B. All operating expenses, except cost of food consumed aboard, are deducted from the gross receipts from sale of the catch. The remainder is divided into two shares, one for the owner or operator of the vessel and the other to be distributed among the fishermen. The amount of the fishermen's share before deduction of the cost of food constitutes taxable wages.

Gross proceeds from sale of the catch..........................	$1,000
Less fuel and other operating expenses..........................	200
800
Owner or operator's share (40 percent)..........................	320
Fishermen's share (60 percent)..........................	480	Taxable wages
Less cost of food..........................	100
Cash wages..........................	$380

(i) Taxable wages each person, assuming 5 men with equal shares--$96.

(ii) Taxable wages each person, assuming 5 men, 1 man having 2 shares, and 4 men having 1 share each:

Total Taxable wages	Less cost of food	Cash
Fisherman "A" ..........................	$160	$20	$140
Fisherman "B" ..........................	80	20	60
Fisherman "C" ..........................	80	20	60
Fisherman "D" ..........................	80	20	60
Fisherman "E" ..........................	80	20	60
$480	$100	$380

(c) "Fishermen" as used in this section includes all persons aboard the vessel who are entitled to receive a share-of-the-catch or who are remunerated on any other basis.

(d) It is immaterial for the purposes of this section that the facilities furnished by the employer are furnished for his or her convenience or the convenience of the employee.

(e) No right or cause of action founded upon provisions for the reasonably estimated cash value to fishermen of meals and quarters in effect prior to the amendment of this section shall be abolished or impaired by such amendment.

Cal. Code Regs. Tit. 22, §§ 926-5

1. Amendment filed 1-6-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 1). For prior history, see Register 83, No. 7.
2. Amendment of subsection (a) filed 12-21-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 51).
3. Amendment of subsection (a) filed 1-22-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 4).
4. Amendment of subsection (a) filed 12-22-86; designated effective 1-1-87 pursuant to Government Code section 11346.2(d) (Register 86, No. 52).
5. Amendment of subsection (a) filed 1-5-88; operative 1-5-88 (Register 88, No. 3).
6. Amendment of subsection (a) filed 1-17-89; operative 1-17-89 pursuant to Government Code section 11346.2(d) (Register 89, No. 4).
7. Amendment of subsection (a) filed 2-8-90; operative 2-8-90 (Register 90, No. 7).
8. Amendment filed 2-27-91; operative 2-27-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 13).
9. Amendment of subsections (a)(2) and (a)(3) filed 6-10-92; operative 7-10-92 (Register 92, No. 24).
10. Amendment of subsections (a)(2)(A) and (a)(3) filed 12-31-92; operative 1-1-93 (Register 93, No. 1).
11. Amendment of subsections (a)(2)(A) and (a)(3)(B) filed 3-2-94; operative 3-2-94 (Register 94, No. 9).
12. Editorial correction of subsections (a)(1)(B) and (b) (Register 94, No. 51).
13. Amendment of subsections (a)(2)(A), (a)(3) and (b) filed 12-21-94; operative 1-1-95 pursuant to Government Code section 11346.2(d) (Register 94, No. 51).
14. Amendment of subsections (a)(2)(A) and (a)(3) filed 1-26-96; operative 1-26-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 4).
15. Amendment of subsections (a)(2)(A) and (a)(3) filed 2-6-97; operative 3-8-97 (Register 97, No. 6).
16. Amendment of subsections (a)(2)(A) and (a)(3) filed 2-9-98; operative 3-11-98 (Register 98, No. 7).
17. Amendment of subsections (a)(2)(A) and (a)(3) filed 5-7-99; operative 5-7-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 19).
18. Amendment of subsections (a)(2)(A) and (a)(3) filed 5-18-2000; operative 5-18-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 20).
19. Amendment of subsections (a)(2)(A)-(a)(3) filed 4-10-2001; operative 4-10-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 15).
20. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-21-2002; operative 3-21-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 12).
21. Amendment of subsections (a)(2)(A) and (a)(3) filed 4-1-2003; operative 4-1-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 14).
22. Amendment of subsections (a)(2)(A) and (a)(3) filed 8-9-2004; operative 8-9-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 33).
23. Amendment of subsections (a)(2)(A)-(a)(3) filed 3-14-2005; operative 3-14-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 11).
24. Amendment of subsections (a)(2)(A) and (a)(3) and NOTE filed 3-23-2006; operative 1-1-2006 pursuant to Unemployment Insurance Code section 310 (Register 2006, No. 12).
25. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-19-2007; designated effective date 1-1-2007 pursuant to Unemployment Insurance Code section 310 (Register 2007, No. 12).
26. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-3-2008; designated effective date 1-1-2008 pursuant to Unemployment Insurance Code section 310 (Register 2008, No. 10).
27. Amendment of subsections (a)(2)(A) and (a)(3) filed 6-17-2009; operative 1-1-2009 pursuant to Unemployment Insurance Code section 310 (Register 2009, No. 25).
28. Amendment of subsections (a)(2)(A) and (a)(3) filed 8-23-2010; operative 1-1-2010 pursuant to Unemployment Insurance Code section 310 (Register 2010, No. 35).
29. Amendment of subsections (a)(2)(A) and (a)(3) filed 12-10-2012; operative 1-1-2011 pursuant to Unemployment Insurance Code section 310 (Register 2012, No. 50).

Note: Authority cited: Sections 305, 306 and 310, Unemployment Insurance Code. Reference: Section 926, Unemployment Insurance Code.

1. Amendment filed 1-6-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 1). For prior history, see Register 83, No. 7.
2. Amendment of subsection (a) filed 12-21-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 51).
3. Amendment of subsection (a) filed 1-22-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 4).
4. Amendment of subsection (a) filed 12-22-86; designated effective 1-1-87 pursuant to Government Code section 11346.2(d) (Register 86, No. 52).
5. Amendment of subsection (a) filed 1-5-88; operative 1-5-88 (Register 88, No. 3).
6. Amendment of subsection (a) filed 1-17-89; operative 1-17-89 pursuant to Government Code section 11346.2(d) (Register 89, No. 4).
7. Amendment of subsection (a) filed 2-8-90; operative 2-8-90 (Register 90, No. 7).
8. Amendment filed 2-27-91; operative 2-27-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 13).
9. Amendment of subsections (a)(2) and (a)(3) filed 6-10-92; operative 7-10-92 (Register 92, No. 24).
10. Amendment of subsections (a)(2)(A) and (a)(3) filed 12-31-92; operative 1-1-93 (Register 93, No. 1).
11. Amendment of subsections (a)(2)(A) and (a)(3)(B) filed 3-2-94; operative 3-2-94 (Register 94, No. 9).
12. Editorial correction of subsections (a)(1)(B) and (b) (Register 94, No. 51).
13. Amendment of subsections (a)(2)(A), (a)(3) and (b) filed 12-21-94; operative 1-1-95 pursuant to Government Code section 11346.2(d) (Register 94, No. 51).
14. Amendment of subsections (a)(2)(A) and (a)(3) filed 1-26-96; operative 1-26-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 4).
15. Amendment of subsections (a)(2)(A) and (a)(3) filed 2-6-97; operative 3-8-97 (Register 97, No. 6).
16. Amendment of subsections (a)(2)(A) and (a)(3) filed 2-9-98; operative 3-11-98 (Register 98, No. 7).
17. Amendment of subsections (a)(2)(A) and (a)(3) filed 5-7-99; operative 5-7-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 19).
18. Amendment of subsections (a)(2)(A) and (a)(3) filed 5-18-2000; operative 5-18-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 20).
19. Amendment of subsections (a)(2)(A)-(a)(3) filed 4-10-2001; operative 4-10-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 15).
20. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-21-2002; operative 3-21-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 12).
21. Amendment of subsections (a)(2)(A) and (a)(3) filed 4-1-2003; operative 4-1-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 14).
22. Amendment of subsections (a)(2)(A) and (a)(3) filed 8-9-2004; operative 8-9-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 33).
23. Amendment of subsections (a)(2)(A)-(a)(3) filed 3-14-2005; operative 3-14-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 11).
24. Amendment of subsections (a)(2)(A) and (a)(3) and Note filed 3-23-2006; operative 1-1-2006 pursuant to Unemployment Insurance Code section 310 (Register 2006, No. 12).
25. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-19-2007; designated effective date 1-1-2007 pursuant to Unemployment Insurance Code section 310 (Register 2007, No. 12).
26. Amendment of subsections (a)(2)(A) and (a)(3) filed 3-3-2008; designated effective date 1-1-2008 pursuant to Unemployment Insurance Code section 310 (Register 2008, No. 10).
27. Amendment of subsections (a)(2)(A) and (a)(3) filed 6-17-2009; operative 1-1-2009 pursuant to Unemployment Insurance Code section 310 (Register 2009, No. 25).
28. Amendment of subsections (a)(2)(A) and (a)(3) filed 8-23-2010; operative 1-1-2010 pursuant to Unemployment Insurance Code section 310 (Register 2010, No. 35).
29. Amendment of subsections (a)(2)(A) and (a)(3) filed 12-10-2012; operative 1-1-2011 pursuant to Unemployment Insurance Code section 310 (Register 2012, No. 50).