Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
Commerce & Labor Committee | |
SSB 5534
Brief Description: Creating an exemption from unemployment compensation for certain small performing arts industries.
Sponsors: Senate Committee on Labor, Commerce, Research & Development (originally sponsored by Senators Kohl-Welles, Clements and Keiser).
Brief Summary of Substitute Bill |
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Hearing Date: 3/23/07
Staff: Jill Reinmuth (786-7134).
Background:
Unemployment benefits are payable to unemployed workers who worked at least 680 hours in
covered employment in their base years and meet other eligibility requirements. Unemployment
contributions (taxes) are paid on wages paid in covered employment.
Most employment is covered employment under the Employment Security Act. Employment
excluded from coverage includes work performed by certain corporate officers, employees of
churches and certain nonprofit organizations, and certain nonresident aliens who are temporarily
in the United States to work.
Summary of Bill:
Covered employment does not include activities related to performances sponsored by theater
companies and dinner theaters, dance companies, and museums for which nominal stipends are
paid. Stipends are presumed to defray incidental expenses, including meals, transportation,
lodging, costumes, supplies, child care, and related expenses. "Stipends" are fixed sums paid
periodically to defray expenses. This exclusion does not apply to employers with more than
three employees during any portion of a day during the calendar year.
Rules Authority: The bill does not contain provisions addressing the rule-making powers of an
agency.
Appropriation: None.
Fiscal Note: Requested on March 14, 2007.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.