Employment: employer contributions: employee withholdings: credit: agricultural employees.

Senator Grove's agricultural overtime wage proposal would establish a new employer tax credit system within California's Unemployment Insurance Code. Under the measure, agricultural employers could claim credits against their employee tax withholding obligations based on overtime wages paid to workers covered by Industrial Welfare Commission Wage Order 14-2001.

The credit amount would equal the overtime wages paid in each quarter, calculated as the difference between workers' overtime and regular pay rates. However, employers could not claim credits exceeding their total employee tax withholding obligations for that quarter. The Employment Development Department would administer the credits through existing quarterly wage reporting systems or electronic funds transfers.

The measure maintains current tax withholding requirements and reporting obligations to state and federal authorities. Employee tax liabilities would remain unchanged, with employers still required to withhold and report taxes at existing levels. The Employment Development Department would develop implementing regulations while ensuring the credit system operates within existing appropriation levels.