BILL REQ. #:  Z-0706.3 

Read first time 01/16/08.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to the imposition of delinquency tax rates for qualified employers; amending RCW 50.29.010; and creating a new section.

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

Sec. 1   RCW 50.29.010 and 2002 c 149 s 11 are each amended to read as follows:
     As used in this chapter:
     (1) "Computation date" means July 1st of any year;
     (2) "Cut-off date" means September 30th next following the computation date;
     (3) "Qualification date" means April 1st of the second year preceding the computation date;
     (4) "Rate year" means the calendar year immediately following the computation date;
     (5) "Payroll" means all wages (as defined for contribution purposes) paid by an employer to individuals in his or her employment;
     (6) "Qualified employer" means any employer who (a) reported some employment in the twelve-month period beginning with the qualification date, (b) had no period of four or more consecutive calendar quarters for which he or she reported no employment in the two calendar years immediately preceding the computation date, and (c) has submitted by the cut-off date all reports, contributions, interest, and penalties required under this title for the period preceding the computation date. Unpaid contributions, interest, and penalties ((may)) must be disregarded for the purposes of this section if they constitute less than either one hundred dollars or one-half of one percent of the employer's total tax reported for the twelve-month period immediately preceding the computation date. Late reports, contributions, penalties, or interest ((from employment defined under RCW 50.04.160)) may be disregarded for the purposes of this section if showing is made to the satisfaction of the commissioner, as the commissioner may define by rule, that an otherwise qualified employer acted in good faith and that forfeiture of qualification for a reduced contribution rate because of such delinquency would be inequitable.

NEW SECTION.  Sec. 2   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION.  Sec. 3   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.