WSR 03-16-111



[ Filed August 6, 2003, 11:32 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-06-119.

     Title of Rule: Policies regarding employers, including Indian tribes and tribal units, who are delinquent in the payment of unemployment contributions.

     Purpose: To clarify the penalties that will apply to employers who are delinquent in the payment of unemployment taxes.

     Statutory Authority for Adoption: RCW 50.12.010, 50.12.040.

     Statute Being Implemented: Chapter 50.50 RCW, RCW 50.29.025.

     Summary: This rules clarify chapter 50.50 RCW regarding the actions the department will take in the event a tribe or tribal unit is delinquent in the payment of contributions. The rules also clarify that the delinquency rate specified by RCW 50.29.025 shall apply to any delinquent reimbursable employer who becomes a contribution-paying employer.

     Reasons Supporting Proposal: To clarify for employers the actions that will occur in the event of a delinquency.

     Name of Agency Personnel Responsible for Drafting: Juanita Myers, 212 Maple Park, Olympia, (360) 902-9665; Implementation and Enforcement: Annette Copeland, 212 Maple Park, Olympia, (360) 902-9303.

     Name of Proponent: Employment Security Department, governmental.

     Rule is necessary because of federal law, 26 U.S.C. § 3309.

     Explanation of Rule, its Purpose, and Anticipated Effects: The rules clarify that in the event a tribal unit is delinquent in the payment of unemployment contributions, any revocation action or other penalty shall apply to the tribe as a while [whole]. If a delinquency results in the loss of coverage, any notice to tribal employees is left to the tribe, not the department. Finally, the rules provide that the penalty established by RCW 50.29.025 for delinquent employers shall also apply to reimbursable employers who begin paying taxes.

     Proposal does not change existing rules.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The rules apply primarily to tribes and tribal entities, not to employers in general. The rule clarifying RCW 50.29.025 only clarifies the tax rate that will apply to a delinquent reimbursable employer who becomes a tax-paying employer, and will not impact a significant percentage of businesses in general or small businesses in particular.

     RCW 34.05.328 does not apply to this rule adoption. The rules only clarify existing statute, they do not establish penalties that did not previously exist.

     Hearing Location: Employment Security Department, Maple Leaf Room, 2nd Floor, 212 Maple Park, Olympia, WA, on September 11, 2003, at 1:30 p.m.

     Assistance for Persons with Disabilities: Contact Mary Mendoza by September 9, 2003, TDD (360) 902-9589 or (360) 902-9281.

     Submit Written Comments to: Larry Oline, Acting Rules Coordinator, Employment Security Department, P.O. Box 9046, Olympia, WA 98507-9046, fax (360) 438-3226, by September 10, 2003.

     Date of Intended Adoption: September 12, 2003.

August 4, 2003

Dr. Sylvia P. Mundy


WAC 192-330-110   Delinquencies.   RCW 50.29.025 (1)(f)(i) and (2)(c)(i) specifies the tax rate that shall be charged to employers who have failed to pay their contributions and who are not in compliance with a deferred payment contract. The tax rate established by that section shall also be assigned to a reimbursable employer (one who makes payments in lieu of contributions) who is delinquent in its payments and elects or is required to become a contribution-paying employer.


WAC 192-330-150   Tribes and tribal entities -- RCW 50.50.040   (1) In any revocation action, the department will treat the entire tribe as a single entity. If any tribal entity or unit becomes delinquent, the entire tribe will be treated as delinquent. If any entity of the tribe is a contribution-paying employer and is delinquent, the entire tribe will be treated as a contribution-paying employer and will be subject to revocation of coverage.

     (2) The ninety and one hundred-eighty day response periods begin with the date the tax statement is mailed to the employer by the department.


WAC 192-330-155   Notification to tribes.   (1) A copy of any notice of payment or reporting delinquency required by RCW 50.50.050, issued to a tribe or tribal unit, will be provided to the tribal chairperson and to such other person(s) designated by the tribe or tribal unit.

     (2) The tribe will be responsible for notifying its employees of the potential loss of coverage.


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