Average number of employees - Defined - Computation.
San José Municipal Code § 4.76.030
in effect4.76.030 - Average number of employees - Defined - Computation.
A. "Average number of employees" means the average number of employees employed in the city in applicant's business in the one year immediately preceding the commencement of the year for which the business tax certificate is being issued, and shall be determined as follows:
1. By ascertaining the total number of hours of service performed in the city by all employees in the applicant's business during the preceding year and dividing the total number of hours of service thus obtained by the number of hours of service constituting a day's work according to the laws, custom or usage governing or pertaining to such employment, and the number thus obtained shall then be divided by the number of business days in the preceding year; or
2. At the option of the applicant, if the applicant files with the state department of employment the forms and reports hereinafter mentioned, and if the applicant reports therein all applicant's employees as defined in this chapter, the applicant may calculate the average number of employees by taking the number of employees employed in applicant's business in the city in each month of the preceding year as shown and reported on all DE3 forms, and by dividing the sum thus obtained by twelve. The DE3 and other forms hereinabove referred to are those certain forms entitled "DE3 Contribution Return and Report of Wages Under the Unemployment Insurance Code," which employers are required to file with the state department of employment, under the Unemployment Insurance Code of the state for the purpose of reporting contributions due under such code, and any other form or forms now or hereafter required by the state for such purposes.
B. In computing the average number of employees, fractions of numbers of one-half and greater shall be rounded up to the next whole number.
(Measure G (Ord. 2016.2), adopted by electorate, 12-13-16)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT4REFIBUTA_CH4.76BUTA_PT1PUDE_4.76.030AVNUEMEFOMFetched: 11/1/2026