Changes to CA Unemployment & Disability Tax for CA Residents

Nov. 5, 2019

Recent amendments to the California Insurance Code will change the way that Cast & Crew calculates state unemployment insurance (“UI”) and state disability insurance (“SDI”) for California resident production employees working on projects out of state. The change comes out of lobbying efforts by various entertainment industry unions and coalitions and is aimed at providing greater benefits to California resident production employees. Historically, ambiguity in the California Insurance Code meant that production employees from California working out of state may have contributed UI and SDI taxes, when applicable, to the state where they were working rather than to California, making benefits more difficult to access in California.

Pursuant to the new law, effective Jan. 1, 2020, Cast & Crew will treat California as the state of employment for UI and SDI purposes for California resident production employees working out of state.

Additional information on the law can be found here.

If you have any questions, please email compliance@castandcrew.com.

The proceeding information is provided for informational purposes only, should not be construed as or relied upon as legal advice and is subject to change without notice. If you have questions concerning particular situations, specific payroll administration or labor relations issues, please contact your counsel.