2345-S AMH SCHO H5218.1 [atlas:amendment]

2345-S AMH SCHO H5218.1

SHB 2345 - H AMD 337 ADOPTED 2-19-96

By Representatives Schoesler, and others

On page 145, after line 2, insert the following:

"Sec. 901. RCW 50.24.010 and 1984 c 205 s 2 are each amended to read as follows:

(1) Contributions shall accrue and become payable by each employer (except employers as described in RCW 50.44.010 who have properly elected to make payments in lieu of contributions and those employers who are required to make payments in lieu of contributions) for each calendar year in which the employer is subject to this title at the rate established pursuant to chapter 50.29 RCW.

In each rate year, the amount of wages subject to tax for each individual shall be one hundred fifteen percent of the amount of wages subject to tax for the previous year rounded to the next lower one hundred dollars: PROVIDED, That the amount of wages subject to tax in any rate year shall not exceed eighty percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars: PROVIDED FURTHER, That the amount subject to tax shall be twelve thousand dollars for rate year 1984 and ten thousand dollars for rate year 1985.

In making computations under this section and RCW 50.29.010, wages paid based on services for employers making payments in lieu of contributions shall not be considered remuneration. Moneys paid from the fund, based on services performed for employers who make payments in lieu of contributions, which have not been reimbursed to the fund as of any June 30 shall be deemed an asset of the unemployment compensation fund, to the extent that such moneys exceed the amount of payments in lieu of contributions which the commissioner has previously determined to be uncollectible: PROVIDED, FURTHER, That the amount attributable to employment with the state shall also include interest as provided for in RCW 50.44.020.

Contributions shall become due and be paid by each employer to the treasurer for the unemployment compensation fund in accordance with such regulations as the commissioner may prescribe, except as provided in subsection (2) of this section, and shall not be deducted, in whole or in part, from the remuneration of individuals in employment of the employer. Any deduction in violation of the provisions of this section shall be unlawful.

In the payment of any contributions, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

(2) For the purposes of making contributions during calendar year 1996, the following shall apply to an employer whose place of business is located in a county that the governor has declared to be in a disaster area as a result of flooding in 1996 and whose business is permanently or temporarily closed, or the operations of the business are severely curtailed, for reasons that are directly attributable to flood damage:

(a) The employer may elect to defer for up to six months the report under RCW 50.12.070 and the payment of contributions required under this section for the quarter ending March 31, 1996. The employer electing this option must notify the commissioner in writing by April 30, 1996;

(b) Any report and payment of contributions deferred under this subsection is due no later than October 31, 1996; and

(c) If the report is made and the deferred contributions are fully paid by October 31, 1996, penalties may not be assessed and interest may not accrue as a result of the deferral permitted under this subsection.

Sec. 902. RCW 51.16.060 and 1985 c 315 s 1 are each amended to read as follows:

(1) Every employer not qualifying as a self-insurer, shall insure with the state and, except as provided in subsection (2) of this section, shall, on or before the last day of January, April, July and October of each year thereafter, furnish the department with a true and accurate payroll for the period in which workers were employed by it during the preceding calendar quarter, the total amount paid to such workers during such preceding calendar quarter, and a segregation of employment in the different classes established pursuant to this title, and shall pay its premium thereon to the appropriate fund. Premiums for a calendar quarter, whether reported or not, shall become due and delinquent on the day immediately following the last day of the month following the calendar quarter. The sufficiency of such statement shall be subject to the approval of the director: PROVIDED, That the director may in his or her discretion and for the effective administration of this title require an employer in individual instances to furnish a supplementary report containing the name of each individual worker, his or her hours worked, his or her rate of pay and the class or classes in which such work was performed: PROVIDED FURTHER, That in the event an employer shall furnish the department with four consecutive quarterly reports wherein each such quarterly report indicates that no premium is due the department may close the account: PROVIDED FURTHER, That the department may promulgate rules and regulations in accordance with chapter 34.05 RCW to establish other reporting periods and payment due dates in lieu of reports and payments following each calendar quarter, and may also establish terms and conditions for payment of premiums and assessments based on estimated payrolls, with such payments being subject to approval as to sufficiency of the estimated payroll by the department, and also subject to appropriate periodic adjustments made by the department based on actual payroll: AND PROVIDED FURTHER, That a temporary help company which provides workers on a temporary basis to its customers shall be considered the employer for purposes of reporting and paying premiums and assessments under this title according to the appropriate rate classifications as determined by the department: PROVIDED, That the employer shall be liable for paying premiums and assessments, should the temporary help company fail to pay the premiums and assessments under this title.

(2) For the purposes of paying premiums during calendar year 1996, the following shall apply to an employer whose place of business is located in a county that the governor has declared to be in a disaster area as a result of flooding in 1996 and whose business is permanently or temporarily closed, or the operations of the business are severely curtailed, for reasons that are directly attributable to flood damage:

(a) The employer may elect to defer for up to six months the report and the payment of premiums required under this section for the quarter ending March 31, 1996. The employer electing this option must notify the department in writing by April 30, 1996;

(b) Any report and payment of premiums deferred under this subsection is due no later than October 31, 1996; and

(c) If the report is made and the deferred premiums are fully paid by October 31, 1996, penalties may not be assessed and interest may not accrue as a result of the deferral permitted under this subsection.

Sec. 903. RCW 82.32.045 and 1983 2nd ex.s. c 3 s 63 are each amended to read as follows:

(1) Except as otherwise provided in this chapter, payments of the taxes imposed under chapters 82.04, 82.08, 82.12, 82.14, and 82.16 RCW, along with reports and returns on forms prescribed by the department, are due monthly within twenty-five days after the end of the month in which the taxable activities occur.

(2) The department of revenue may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. For these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.

(3) The department of revenue may also require verified annual returns from any taxpayer, setting forth such additional information as it may deem necessary to correctly determine tax liability.

(4) For the purposes of paying taxes imposed under chapter 82.04 RCW during calendar year 1996, the following shall apply to a taxpayer whose place of business is located in a county that the governor has declared to be in a disaster area as a result of flooding in 1996 and whose business is permanently or temporarily closed, or the operations of the business are severely curtailed, for reasons that are directly attributable to flood damage:

(a) The taxpayer may elect to defer for up to six months any returns and the payment of taxes required under chapter 82.04 RCW for reporting periods ending March 31, 1996. The taxpayer electing this option must notify the department in writing by the date on which the returns and taxes would otherwise be due under this section;

(b) Any return and payment of taxes deferred under this subsection is due no later than October 31, 1996; and

(c) If the deferred return is made and the deferred taxes are fully paid by October 31, 1996, penalties may not be assessed and interest may not accrue as a result of the deferral permitted under this subsection."

Renumber the sections consecutively and correct internal references and the title accordingly.

EFFECT: The amendment allows taxpayers whose businesses are closed or severely curtailed because of flood damage to defer payment of first quarter industrial insurance premiums, unemployment insurance contributions, and business and occupation taxes. Payment of these taxes may be deferred until October 31, 1996, if the place of business is located in a county declared by the Governor to be in a disaster area because of 1996 flooding. The taxpayer must notify the appropriate agencies in writing and the taxes must be paid no later than October 31, 1996. If the taxes are paid on time, there will be no penalties or interest resulting form the deferral.