S-434                 _______________________________________________

                                                   SENATE BILL NO. 5019

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senator Conner

Prefiled with Secretary of the Senate 12/30/88.  Read first time 1/9/89 and referred to Committee on Economic Development & Labor.

AN ACT Relating to unemployment compensation; and amending RCW 50.24.010 and 50.24.014.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 89, chapter 35, Laws of 1945 as last amended by section 2, chapter 205, Laws of 1984 and RCW 50.24.010 are each amended to read as follows:

          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)) rules as the commissioner may prescribe, 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.

The commissioner shall prescribe, by rule, a procedure for estimated quarterly payments by employers during the rate year in lieu of an annual payment.

          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.

        Sec. 2.  Section 8, chapter 5, laws of 1985 ex. sess. as amended by section 4, chapter 171, Laws of 1987 and RCW 50.24.014 are each amended to read as follows:

          A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund.  Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at the rate of two one-hundredths of one percent.  The amount of wages subject to tax shall be determined under RCW 50.24.010.

          Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer.  Any deduction in violation of this section is unlawful.

The commissioner shall prescribe, by rule, a procedure for estimated quarterly payments by employers during the rate year in lieu of an annual payment.

          In the payment of any contributions under this section, 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.

          If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.