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SENATE BILL 5583
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Passed Legislature - 1995 Regular Session
State of Washington 54th Legislature 1995
Regular Session
By
Read first time 01/27/95. Referred to Committee
on Labor, Commerce & Trade.
Determining unemployment insurance
contribution rates for successor employers.
AN ACT Relating to
unemployment insurance contribution rates for successor employers; and amending
RCW 50.29.062.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 50.29.062 and 1989 c
380 s 81 are each amended to read as follows:
Predecessor and
successor employer contribution rates shall be computed in the following
manner:
(1) If the successor is
an employer, as defined in RCW 50.04.080, at the time of the transfer,
((his or her)) its contribution rate shall remain unchanged for
the remainder of the rate year in which the transfer occurs. From and after
January 1 following the transfer, the successor's contribution rate for each
rate year shall be based on ((his or her)) its experience with
payrolls and benefits including the experience of the acquired business or
portion of a business from the date of transfer, as of the regular computation
date for that rate year.
(2) If the successor is
not an employer at the time of the transfer, ((he or she)) it
shall pay contributions at the ((rate class assigned to the predecessor
employer at the time of the transfer for the remainder for that rate year and
continuing until such time as he or she qualifies for a different rate in his
or her own right)) lowest rate determined under either of the following:
(a) The contribution
rate of the rate class assigned to the predecessor employer at the time of the
transfer for the remainder of that rate year and continuing until the successor
qualifies for a different rate in its own right. Any experience relating to
the assignment of that rate class attributable to the predecessor is transferred
to the successor; or
(b) The contribution
rate equal to the average industry rate as determined by the commissioner, but
not less than one percent, and continuing until the successor qualifies for a
different rate in its own right. Assignment of employers by the commissioner
to industrial classification, for purposes of this subsection, must be in
accordance with established classification practices found in the
"Standard Industrial Classification Manual" issued by the federal
office of management and budget to the third digit provided in the standard
industrial classification code.
(3) If the successor is
not an employer at the time of the transfer and simultaneously acquires the
business or a portion of the business of two or more employers in different
rate classes, ((his or her)) its rate from the date the transfer
occurred until the end of that rate year and until ((he or she)) it
qualifies in ((his or her)) its own right for a new rate, shall
be the highest rate class applicable at the time of the acquisition to any
predecessor employer who is a party to the acquisition.
(4) The contribution
rate on any payroll retained by a predecessor employer shall remain unchanged
for the remainder of the rate year in which the transfer occurs.
(5) In all
cases, from and after January 1 following the transfer, the predecessor's
contribution rate for each rate year shall be based on ((his or her)) its
experience with payrolls and benefits as of the regular computation date for
that rate year including the experience of the acquired business or portion of
business up to the date of transfer: PROVIDED, That if all of the
predecessor's business is transferred to a successor or successors, the
predecessor shall not be a qualified employer until ((he or she)) it
satisfies the requirements of a "qualified employer" as set forth in
RCW 50.29.010.
