EXPEDITED ADOPTION
Title of Rule: Employer reports--Further defining hours worked--RCW 50.12.070.
Purpose: To define those types of hours that should be reported on the employer's quarterly tax and wage report, i.e. vacation, sick leave, overtime et. al.
Statutory Authority for Adoption: Chapters 34.05 and 50.12 RCW.
Statute Being Implemented: Portion of RCW 50.12.070 and 50.04.330(1).
Summary: To revise the rule to promote clarity and delete archaic language. This rule is being rewritten and renumbered to remove sections of rules that are difficult to understand and to clarify the intent of the rule.
Reasons Supporting Proposal: This rule is being amended in compliance 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, UI Tax Administration, 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. The rule defines hours that should be included on the employer's quarterly tax and wage report such as vacation pay, sick leave pay, overtime, commissioned employees, wages in lieu of notice, employees on salary, faculty employees, payment in kind, bonuses, tips and other gratuities; and fractions of hours.
Proposal Changes the Following Existing Rules: The existing rule is repealed. The new
rule is being renumbered and rewritten in accordance with Executive Order 97-02 and the
department's new easier system for identifying rules for all users. There is no substantive change
to the pervious 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 Division, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046 , AND RECEIVED BY July 21, 1999.
May 13, 1999
Carver Gayton
Commissioner
This section defines the hours that should be included on the employer’s quarterly tax and wage report.
(1) Vacation pay. The employer will report the number of hours and employee is on leave with pay. Cash payments made in place of vacation time will not be counted as hours worked.
(2) Sick leave pay. In accordance with RCW 50.04.330(1), any amount of payments made to the employee covered under a qualified plan regarding sickness or accident disability, insurance or annuities, medical or hospitalization expenses in connection with sickness or accident disability, death or retirement are not considered to be wages or compensation. Neither hours nor wages are reportable. Under a nonqualified plan, the wages and hours are reportable.
(3) Overtime. The employer will report the number of hours actually worked for which overtime pay or compensatory time is provided, without regard to the amount of wages or compensation paid.
(4) Commissioned employees. An employer will report the actual number of hours worked by employees paid by commission. In the absence of reliable time keeping records, the employer will report a full-time commissioned employee for 40 hours worked for each week in which any of their duties were performed.
(5) Wages in lieu of notice. When an employee is paid wages in lieu of notice, the employer will report the actual number of hours that would have been for which they were compensated. Wages in lieu of notice compensates the employee upon termination of service for the amount of wages they would have earned during the specified period.
(6) Employees on salary. If a salaried employee works other than the regular 40-hour week, the employer will report the actual number of hours worked. In the absence of a reliable time keeping record, the employer will report a full-time salaried employee for 40 hours each week they worked.
(7) Faculty employees. Faculty members of community and technical colleges must teach at least 15 classroom or laboratory hours to be considered full-time. A teaching load of less than 15 hours of instruction is considered part-time.
(i) In the absence of reliable hourly information, an employer will report the hours of instruction as part-time using 35 hours as the base per week using the following computation. For example, an instructor teaches 12 hours per week. 12 hours divided by 15 hours equals 80%. 35 hours times 80% equals 28 hours. The employer will report the 28 hours to the department on the employer’s quarterly tax and wage report.
(ii) Any part-time salaried instructor who does not establish a valid claim because of this formula, may provide the department with documentation of hours worked which exceeds the reported hours by the employer.
(8) Severance pay. Employers will not report additional hours worked for severance pay. Severance pay is based on past service and compensates the employee upon job separation.
(9) Payment in kind. The employer will report the actual hours worked for performing services, which are compensated only by payment in kind.
(10) Bonuses, tips and other gratuities. An employer will not report additional hours for bonuses, tips or other gratuities if they are received performing regular hours if bonuses, tips and gratuities are the only sources of their compensation.
(11) Fractions of hours. If the employee’s total number of hours for the quarter results in a fraction amount, the total figure will be rounded to the next higher number.
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