Effective Date of Rule: Thirty-one days after filing.
Purpose: The amendment to WAC 192-310-160 clarifies that only the exempted officers of a private corporation must be related by blood or marriage.
Citation of Existing Rules Affected by this Order: Amending WAC 192-310-160.
Statutory Authority for Adoption: RCW 50.12.010 and 50.12.040.
Adopted under notice filed as WSR 08-21-077 on October 14, 2008.
Date Adopted: February 6, 2009.
Karen T. Lee
(2) The election to exempt corporate officers is effective immediately if made when the corporation first registers with the department as an employer under RCW 50.12.070. If the election to exempt corporate officers is made after that, the exemption is effective on January 1 of the following calendar year. The corporation must send written notice to the department by January 15 for the exemption to be effective on January 1 of that year. The exemption is not effective until filed with the department and will not be applied retroactively, except for the period from January 1 to January 15 if the notice is sent by January 15. A corporation is not eligible for refund or credit for periods before the effective date of the exemption.
(3) A public company as defined in RCW 23B.01.400 may exempt any bona fide corporate officer:
(a) Who is voluntarily elected or voluntarily appointed under the articles of incorporation or bylaws of the corporation;
(b) Who is a shareholder of the corporation;
(c) Who exercises substantial control in the daily management of the corporation; and
(d) Whose primary responsibilities do not include the performance of manual labor.
(4) A corporation that is not a public company may exempt eight or fewer bona fide corporate officers who voluntarily agree to be exempted from coverage and sign a form approved by the department verifying this. These corporate officers must be voluntarily elected or voluntarily appointed under the articles of incorporation or bylaws of the corporation and must exercise substantial control in the daily management of the corporation.
(5) A corporation that is not a public company may exempt any number of corporate officers if all exempted officers of the corporation are related by blood within the third degree or by marriage to a person related by blood within the third degree. If any of the corporate officers fail to qualify for this exemption because they are not related by blood or marriage as required, then none of the corporate officers may qualify under this subsection, although they may still qualify under subsection (4) of this section. This is an alternative and not an addition to exemptions under subsection (4) of this section.
For example, a husband and wife, their biological or adopted children or stepchildren, grandchildren, and great grandchildren, their brothers and sisters, their nephews and nieces, and the spouses of any of these people could qualify for exemption as corporate officers under this section without being limited to eight individuals. However, if any of the corporate officers exempted do not meet this test, then this subsection does not apply.
(6) This section does not apply to officers of a corporation covered by chapter 50.44 RCW (some nonprofit or government organizations) or chapter 50.50 RCW (Indian tribes).
[Statutory Authority: RCW 50.12.010 and 50.12.040. 07-23-127, § 192-310-160, filed 11/21/07, effective 1/1/09.]