EXPEDITED ADOPTION
Title of Rule: Tips as wages.
Purpose: To designate to employers how the department views the reporting of wages for unemployment insurance tax purposes.
Statutory Authority for Adoption: Chapter 50.12 RCW.
Statute Being Implemented: RCW 50.04.320.
Summary: To revise the rule to promote clarity and delete any archaic language. This rule is being rewritten and renumbered.
Reasons Supporting Proposal: To comply with Governor Locke's Executive Order 97-02.
Name of Agency Personnel Responsible for Drafting: George Mante, 212 Maple Park, Olympia, WA, (360) 902-9642; Implementation and Enforcement: Dale Ziegler, 212 Maple Park, Olympia, WA, (360) 902-9303.
Name of Proponent: Employment Security Department, UI Division, Unemployment Insurance Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule has not been changed from the original rule other than to clarify archaic language and to comply with Governor Locke's Executive Order 97-02. This rule should read better to the general public. It establishes how employers and employees are to report tips as wages.
Proposal Changes the Following Existing Rules: The existing rule is repealed. The new
rule is being renumbered in accordance with Executive Order 97-02. The department's new
numbering system has been used. There are no substantive changes to the existing rule.
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO George Mante, Employment Security Department, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046 , AND RECEIVED BY August 21, 1999.
June 9, 1999
Carver Gayton
Commissioner
For the department to make timely and accurate employer liability determinations and unemployment insurance payments, tips as wages, are those tips that an employee is required to report to the employer by federal law.
(1) The employer must report tips each quarter on an "as paid" basis. Tips are considered "paid" when the employee reports them to the employer for federal income tax purposes; or when they are distributed by the employer to the employee.
(2) Tips are not considered wages for benefit calculation purposes when the value has not been reported to the employer.
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The following sections of the Washington Administrative Code are repealed:
| WAC 192-12-066 | Tips as wages. |
Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.