SB 1131 Summary

• Adds Section 13004.6 to the Unemployment Insurance Code to exclude LLC members from employee classification for income tax withholding purposes

• Specifies that members of a limited liability company treated as a partnership for federal income tax purposes are not considered "employees" under California withholding law

• Applies to employers' obligations to deduct and withhold state income taxes from wages paid to workers

• Effectively exempts LLC members who are taxed as partnerships from mandatory income tax withholding requirements that apply to standard employees