SENATE BILL REPORT

                   SB 6239

                    As of January 10, 2000

Title:  An act relating to requiring large employers to report tax and wage information electronically for unemployment insurance purposes.

Brief Description:  Modifying wage and contribution report filing requirements.

Sponsors:  Senator Fairley; by request of Employment Security Department.

Brief History:

Committee Activity:  Labor & Workforce Development:  1/11/2000.

SENATE COMMITTEE ON LABOR & WORKFORCE DEVELOPMENT

Staff:  Jill Reinmuth (786-7452)

Background:  State unemployment compensation law requires employers to file quarterly wage and tax reports with the state Employment Security Department.  Quarterly reports may be filed either on paper form or on magnetic media.

Federal tax regulations require employers to file returns with the federal Internal Revenue Service.  If an employer has 250 or more employees, certain returns must be filed on magnetic media.

Magnetic media generally include magnetic tape, tape cartridge, and diskette, as well as other media (such as electronic filing).

Summary of Bill:  If an employer has 250 or more employees, the employer must file quarterly wage and tax reports on magnetic media with the state Employment Security Department.

If federal tax regulations are amended to require employers with less than 250 employees to file certain returns on magnetic media with the federal Internal Revenue Service, such employers must also file quarterly reports on magnetic media with the state Employment Security Department.

These state reporting requirements may be waived under rules prescribed by the commissioner.

Appropriation:  None.

Fiscal Note:  Requested on January 4, 2000.

Effective Date:  This bill takes effect January 1, 2001.