EMPLOYMENT SECURITY DEPARTMENT
[Filed June 30, 1998, 8:35 a.m.]
Date of Adoption: June 5, 1998.
Purpose: Rules are amended to eliminate six employer reports that are obsolete and no longer required by the department. New language in WAC 192-310-030 allows penalty fee waivers for employers who voluntarily request an audit of their records pursuant to RCW 43.05.140. Other regulations, regarding reports, tax payments, and notices to employers, are rewritten for clarity and understandability.
Citation of Existing Rules Affected by this Order: Repealing WAC 192-12-030, 192-12-040, 192-12-041, and 192-12-042.
Statutory Authority for Adoption: RCW 50.12.010, 50.12.040. WAC 192-310-010 only: RCW 50.12.070.
Adopted under notice filed as WSR 98-09-105 and 98-09-106 on April 22, 1998.
Changes Other than Editing from Proposed to Adopted Version: The department's original proposal was to amend the existing rules. However, pursuant to Executive Order 97-02 on regulatory improvement, the department is renumbering its unemployment insurance rules as they are reviewed. This is to improve accessibility for the regulated community. The existing rules are repealed, and readopted in new chapters organized by subject.
concise explanatory statement
Reasons for Adopting Rule: Rules are amended to eliminate six employer reports that are obsolete and no longer required by the department. New language in WAC 192-310-030 allows penalty fee waivers for employers who voluntarily request an audit of their records pursuant to RCW 43.05.140. Other regulations, regarding reports, tax payments, and notices to employers, are rewritten for clarity and understandability.
Description of any Difference Between the Text of the Proposed Rule as Published and the Adopted Rule: The department's original proposal was to amend the existing rules. However, pursuant to Executive Order 97-02 on regulatory improvement, the department is renumbering its unemployment insurance rules as they are reviewed. This is to improve accessibility for the regulated community. The existing rules are repealed and readopted in new chapters organized by subject.
Summary and Response to all Comments Received: The Employment Security Department has not received comments on this subject.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 5, amended 0, repealed 4.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 5, amended 0, repealed 4.
Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.
Effective Date of Rule: Thirty-one days after filing.
June 26, 1998
Chapter 192-130 WAC
WAC 192-130-050 Notice of filing of application--RCW 50.20.150. (1) Whenever an individual files an initial application for unemployment benefits, or reopens a claim after subsequent employment, a notice will be mailed to the applicant's most recent employer as stated by the applicant. Any employer who receives such a notice and has information which might make the applicant ineligible for benefits shall report this information to the employment security department at the address indicated on the notice within ten days of the date the notice was mailed. If the employer does not reply within ten days, the department may allow benefits to the individual, if he or she is otherwise eligible.
(2) If an employer reports information which it claims makes an individual ineligible for benefits, the department will issue a written decision regarding the individual's eligibility and mail a copy to the employer.
Chapter 192-310 WAC
REPORTING OF WAGES AND TAXES DUE
WAC 192-310-010 Employer reports--RCW 50.12.070. (1) Master application. Every person or entity which has one or more individuals performing services for it in the state of Washington must file with the department a master application in a format prescribed by the commissioner.
(2) Quarterly tax and wage reports:
(a) Tax report. Each employer must file a quarterly tax report with the commissioner listing the total wages paid to all individuals in its employ during that calendar quarter.
(b) Report of employee's wages. Each employer must file a quarterly report of employee's wages with the commissioner. This report must list each employee by name, social security number, hours worked, and wages paid during that calendar quarter.
(c) The quarterly tax and wage reports must be filed in a format prescribed by the commissioner. They are due by the last day of the month following the end of the calendar quarter being reported. Calendar quarters end on March 31, June 30, September 30 and December 31 of each year. Therefore, reports are due by April 30, July 31, October 31, and January 31, respectively. Exceptions to the time and manner of filing the report must be approved in advance by the commissioner.
(d) Termination of business. Each employer who ceases business or whose account is closed by the department must immediately file:
(i) A tax report for the current calendar quarter which covers tax payments due to the date such account is closed;
(ii) A report of employee's wages for the current calendar quarter which includes all wages paid to the date such account is closed.
(3) Report form instructions. All form preparation instructions issued by the employment security department have the same force and effect as if they had been incorporated into this regulation.
WAC 192-310-020 Tax payments by employers--RCW 50.24.010. (1) Taxes are payable quarterly. Each quarterly payment must include the taxes due on all wages paid during that calendar quarter. Payments are due to the department by the last day of the month following the end of the calendar quarter for which such taxes have accrued. Payments made by mail are considered paid on the postmarked date. If the last day of the month falls on a Sunday or a legal holiday, the tax payment must be received or postmarked on the next working day.
(2) Tax payments are due immediately when an employer ceases business or the account is closed by the department. Taxes not paid immediately are delinquent, but interest will not accrue until the first day of the second month following the end of the calendar quarter for which such taxes have accrued.
WAC 192-310-025 Application of payments. (1) A payment received with a tax report will be applied to the quarter for which the report is filed. A payment exceeding the legal fees, penalties, interests and taxes due for that quarter will be applied to any other debt as provided in subsection (2). If no debt exists, a credit statement will be issued for any overpayments.
(2) A payment received without a tax report will be applied in the following order of priority, beginning with the oldest quarter:
(a) Lien fees
(b) Warrant fees
(c) Late tax report penalty
(d) Late tax payment penalty
(e) Interest charges
(f) Tax payments.
WAC 192-310-030 Reports and tax payments subject to penalty. (1) Tax reports. An employer who files a late or incomplete tax report as described in WAC 192-310-010 (2)(a) is subject to a penalty of ten dollars per violation, unless the penalty is waived by the department.
(2) Report of employee's wages. Any decision to assess a penalty for filing a late or incomplete report of employee's wages as described in WAC 192-310-010 (2)(b) will be made on an individual basis by the chief administrative officer of the tax branch as provided in RCW 50.12.220.
(3) Delinquent tax payments. For purposes of RCW 50.12.220, tax payments are delinquent as provided in WAC 192-310-020 and RCW 1.12.070.
(4) Late penalty. For tax payments due on wages paid, a minimum $10.00 penalty will be assessed for late payments.
(5) Penalty waivers. The department may, for good cause, waive penalties in the following situations:
(a) The return was filed on time but inadvertently mailed to another agency;
(b) The delinquency was due to an action of an employee of the department, such as providing incorrect information to the employer when the source can be identified, or not furnishing proper forms to permit the filing of tax reports or the payment of taxes on time;
(c) The delinquency was caused by the death or serious illness, before the filing deadline, of the employer, a member of the employer's immediate family, the employer's accountant, or a member of the accountant's immediate family;
(d) The delinquency was caused by the accidental destruction of the employer's place of business or business records; or
(e) The department finds the employer to be out of compliance during an employer-requested audit, but the department determines the employer made a good faith effort to comply with all applicable laws and rules.
(6) Waiver requests. A request for a waiver of penalties must be written, contain all pertinent facts, be accompanied by available proof, and be filed through a tax office. In all cases the burden of proving the facts is on the employer.
(7) Extensions. The department, for good cause, may extend the due date for filing a report. The employer must make a deposit with the department in an amount equal to the estimated tax liability for the reporting period or periods for which the extension is granted. This deposit will be credited to the employer's account and applied to the employer's debt. The amount of the deposit is subject to approval by the department.
The following sections of the Washington Administrative Code are repealed:
WAC 192-12-030 Reports required of persons or entities for whom personal services are performed as provided by RCW 50.12.070 and 50.20.150
WAC 192-12-040 Contributions by employers
WAC 192-12-041 Application of payments
WAC 192-12-042 Reports and contributions subject to penalty