Unemployment Insurance Law Summaries
Washington, Unemployment Insurance Law Summaries
Washington's unemployment insurance law is located in Title 50, 1983 Revised Code of Washington, as amended, Secs. 50.1.005 to 50.98.110; and in the Rules and Regulations Under the Washington Employment Security Act, WAC 192-04-010 to 192-40-11-0. The full text of the law is available beginning at Unemployment Insurance Reports UI-WA ¶4003 .
DEFINITIONS
“Employer” of one or more individuals in subject employment. Employers subject to the FUTA are automatically subject to the Washington law.
A music or entertainment business or a leader of a music or entertainment group will be considered an employer and not a purchaser of music or entertainment services. Any musician or entertainer who performs for a music or entertainment business or as a member of a music or entertainment group is an employee of the business or group and the business or the leader of the group is required to register as an employer.
“Employment:” Personal service, of whatever nature, unlimited by relationship of master and servant as known to common law or any other legal relationship, including service in interstate commerce, performed for wages or under any contract calling for performance of personal services, written or oral, express or implied, with exceptions listed below. Service performed for remuneration constitutes “employment” unless and until it is shown that the individual is:
free from control or direction; and
performing such service outside usual course of employer's business or outside all places of employer's business; and
customarily engaged in independently established trade, occupation, etc., of same nature as that involved in contract of service.
As an alternative to the ABC test above, services are not considered employment if it is shown that:
the individual has been and will continue to be free from control or direction over the performance of the services, both under the contract and in fact; and
the service is either outside the usual course of business for which performed, or performed outside of all the places of business of the enterprises for which performed, or the individual is responsible, under contract and in fact, for the costs of the principal place of business from which the service is performed; and
the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the contract of service, or the individual has a principal place of business for the work that is eligible for a business deduction for federal income tax purposes; and
on the effective date of the contract of service, the individual is responsible for filing, both under the contract of service and in fact, a schedule of expenses with the IRS for the type of business the individual is conducting; and
on the effective date of the contract of service, or within a reasonable period thereafter, the individual has established an account with the Department of Revenue and other state agencies, as required, for the business the individual is conducting for the payment of all state taxes normally paid by employers and business and has registered for and received a unified business identifier number from Washington; and
on the effective date of the contract of service, the individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business.
Generally, employment subject to the FUTA is automatically subject to the Washington law.
“Wages:” Remuneration paid for personal services, including commissions, bonuses, and cash value of remuneration paid in any medium other than cash. Tips that are received while performing services that constitute employment and are reported to the employer for federal income tax purposes are included. Term “wages” does not include:
For 2008, the taxable wage base includes remuneration over $34,000. For 2009, the taxable wage base is $35,700. The wage base is determined as 115% of the amount of the wage base for the previous year, but not more than 80% of the average annual wage for the second preceding calendar year rounded to the next lower multiple of $100. Wages for services in another state and wages paid by employer's predecessor may be included as part of applicable taxable wage base.
Other exceptions from wages are listed below.
COVERAGE
Generally, employment subject to the FUTA is automatically subject to the Washington law. Exceptions from coverage are listed below.
Agricultural and domestic employers.- Services in agricultural labor are covered if performed for an employer who employed 10 or more workers in such service for 20 different weeks in the current or preceding calendar year or paid $20,000 or more for such service in any quarter of the current or preceding calendar year. Smaller farms that do not meet the conditions described above are covered under the family employment provisions of the Act.
When agricultural labor is provided by a crew leader, the employing unit for which the services are performed is the employer for the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963, or substantially all of the crew members operate or maintain certain equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer.
Service performed in agricultural labor by individuals who are enrolled as students and regularly attending classes or are between two successive academic years or terms at an elementary or secondary school or an institution of higher education is exempt. In addition, family employment (including corporate farms not covered under “Agricultural and domestic employers,” above), i.e., service performed by individual in employ of spouse, and service by unmarried individual under 18 in employ of parent or stepparent is also exempt. Note that these two exemptions only apply to small farms, not to those described in the “10-20 or 20 rule,” above.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employing unit that paid cash remuneration of $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers.- Mandatory coverage is required for services performed for tax-exempt nonprofit organizations. Mandatory coverage is required for the state, its political subdivisions, and Indian tribes.
Nonprofit organizations may elect to finance benefit payments either by paying contributions or using the reimbursement method.
Counties, cities and towns may elect the local government tax or payments in lieu of contributions. Other political subdivisions may pay contributions or make payments in lieu of contributions. Other state employers are still required to use the reimbursement method.
An employer using the reimbursement method makes payments equal to the full amount of regular benefits and
(full amount for governmental entities) the extended benefits paid claimants. Payments must be made not later than 30 days after mailing of the bill. A bond or deposit of money or securities may be required from nonprofit organizations using the reimbursement method.
EXCEPTIONS
Wages.- Term “wages” does not include:
For 2008, the taxable wage base includes remuneration over $34,000. For 2009, the taxable wage base is $35,700. The wage base will be determined as 115% of the amount of the wage base for the previous year, but not more than 80% of the average annual wage for the second preceding calendar year rounded to the next lower multiple of $100. Wages for services in another state and wages paid by employer's predecessor may be included as part of applicable taxable wage base.
Payments under plan or system established on account of retirement, sickness or accident disability, etc.
Retirement pensions based in full on wages earned prior to base year and that have been applied for and approved.
Certain other retirement payments.
Stand-by pay to employee 65 or over.
Payments for sickness or accident disability made over six months after separation.
Payments from, to or under trust or annuity plan exempt from federal income tax.
Payment of employee's FICA tax without deduction from wages.
Payment to employees in military service for pay period when individual performs no service for employer.
Payments to members of a reserve component of the Armed Forces, including the organized militia of the state, for duty for periods not exceeding 72 hours.
Tips or gratuities paid directly to individual by employer's customer, and not accounted for by such individual to the employer (regardless of whether or not they are reported to the employer for federal social security purposes).
Employment.- The term “employment” does not include the following:
Service performed in agricultural labor by individuals who are enrolled as students and regularly attending classes or are between two successive academic years or terms at an elementary or secondary school or an institution of higher education.
Service not in the course of employer's trade or business.
Corporate officers, except those employed by nonprofit or governmental employers, unless the corporation has elected to cover all of its corporate officers. If employer fails to notify a corporate officer that coverage has not been elected for him or her, he or she will not be considered to be a corporate officer.
Certain contractors.
Insurance brokers to the extent compensated by commission.
Insurance salespersons to extent compensated by commission.
Investment company agents to extent compensated by commission.
Outside agent who sells or arranges for travel services that are provided to a travel agent, to the extent compensated by commission.
Outside salespersons of merchandise paid solely by way of commission.
Real estate brokers and salespersons to extent compensated by commission.
Salespersons of insurance, real estate, and securities to extent they are compensated by commission.
Maritime employees on other than American vessels.
Licensed massage practitioner in a massage business if the use of the business facilities is contingent upon compensation to the owner of the business facilities and the person receives no remuneration from the owner for the services performed (not applicable to massage practitioners performing services for nonprofit or governmental employers.
Musicians or entertainers under a written contract with a purchaser of their services for a specific engagement, when no other duties are performed for the purchaser and the musicians or entertainers are not regularly and continuously employed by the purchaser.
Persons selling or distributing newspapers on street or from house to house.
Nonresident alien performing services for the period he or she is temporarily present in the U.S. as a nonimmigrant and that are performed to carry out the purposes specified in the Federal Immigration and Naturalization Act.
Casual labor not in the course of the employer's trade or business. Note that temporary labor in the usual course of an employer's trade or business or domestic service is not considered casual labor.
Services covered by federal unemployment compensation system providing for payment of benefits.
Services in a licensed barber, hairdressing or cosmetology shop if the use of the shop facilities by the individual performing the services is contingent upon compensation to the shop owner and the individual receives no compensation or other consideration from the owner.
Students employed by certain organizations listed in law.
Government and nonprofit employers.- Mandatory coverage is required for services performed for tax-exempt nonprofit organizations. Mandatory coverage is required for the state and its political subdivisions.
Coverage for nonprofit organizations and the state does not include the following services:
Church, or organization operated for religious purposes and which is controlled by a church.
Religious duties of a minister or member of religious order.
Nongovernmental preschool employing fewer than four individuals on each of 20 days in current or preceding calendar year.
Patients employed in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work-relief or work-training under program financed by federal agency or agency of state or political subdivision.
Inmate of a custodial or penal institution.
Patient employed by a hospital.
Service for school, college or university performed by student in regular attendance, or spouse of that student if spouse's employment is under program of assistance to the student.
Students under 22 enrolled in full-time work-study programs at nonprofit or public educational institutions. Exemption not applicable if programs established for employer or group of employers.
Elected officials.
Members of the National Guard or Air National Guard.
Individuals in certain policy-making positions.
PROCEDURES
Base period.- First four of last five completed calendar quarters preceding benefit year; if former does not establish a benefit year, base period may be the last four completed calendar quarters immediately preceding first day of benefit year.
Benefit year.- 52-week period starting with valid application for benefits; if a prior benefit year was based on the last four completed calendar quarters, a new benefit year may not be established until the new base period does not include any hours used in the establishment of the prior benefit year.
Weekly benefit amount.- For claims with an effective date on or after January 4, 2004, the maximum weekly benefit amount is either $496 or 63% of the "average weekly wage" for the calendar year preceding the previous June 30, whichever is greater. The minimum amount is 15% of the "average weekly wage" for the same time period. For benefit years beginning 7/1/2008, the maximum weekly benefit is $541 and the minimum weekly benefit amount increases to $129.
Partial benefit equals weekly benefit amount less remuneration in excess of weekly benefit amount less 75% of remuneration in excess of $5. In cases of unavailability for less than a full week, weekly benefit amount reduced by
for each day unavailable; but, if unavailable for three or more days during a week, claimant unavailable for entire week.
Effective April 5, 2009: For claims with an effective date on or after April 4, 2004, benefits shall be payable to any eligible individual during the individual's benefit year in a maximum amount equal to the lesser of 26 times the weekly benefit amount, or one-third of the individual's base year wages. For claims with an effective date on or after April 24, 2005, an individual's weekly benefit amount shall be an amount equal to three and eighty-five one-hundredths percent of the average quarterly wages of the individual's total wages during the two quarters of the individual's base year in which such total wages were highest (Sec. 50.20.120, as amended by Ch. 3 (H. 1906), L. 2009, effective April 5, 2009)..
The maximum and minimum amounts payable weekly shall be determined each June 30th to apply to benefit years beginning in the 12-month period immediately following June 30. The maximum weekly benefit amount is either $496 or 63% of the average weekly wage for the calendar year preceding the previous June 30, whichever is greater. The minimum amount is 15% of the average weekly wage for the same time period. If any weekly benefit, maximum benefit, or minimum benefit amount computed herein is not a multiple of $1, it is to be reduced to the next lower multiple of $1 (Sec. 50.20.120, as amended by Ch. 3 (H. 1906), L. 2009, effective April 5, 2009).
Partial benefit equals weekly benefit amount less remuneration in excess of weekly benefit amount less 75% of remuneration in excess of $5. In cases of unavailability for less than a full week, weekly benefit amount reduced by
for each day unavailable; but, if unavailable for three or more days during a week, claimant unavailable for entire week (Sec. 50.20.130).
Maximum total benefits.- Lesser of 30 times weekly benefit amount or
of base-year wages, adjusted to nearest multiple of $1. In addition, during certain periods of high unemployment, extended or additional extended benefits may be paid at weekly benefit rate (Sec. 50.20.120(a). Note that effective April 5, 2009, this subsection is deleted by Ch. 3 (H. 1906), L. 2009).
Shared work program. -A claimant may receive a shared work weekly benefit amount equal to the product of his or her regular weekly benefit amount multiplied by the percentage of reduction in his or her usual weekly hours of work. No more than 26 weeks of shared work benefits may be paid in a year and shared work benefits are to be deducted from the claimant's total benefit amount (Section 50.60.100). Effective April 5, 2009: A claimant may receive a shared work weekly benefit amount equal to the product of his or her regular weekly benefit amount multiplied by the percentage of reduction in his or her usual weekly hours of work (Section 50.60.100, as amended by Ch. 3 (H. 1906), L. 2009, which removes 26 week limitation).
Temporary benefit increase (Effective May 3, 2009): For claims with an effective date before May 3, 2009, in weeks of unemployment on or after May 3, 2009, an individual's benefit amount will be the weekly benefit amount established plus an additional $45, for the remaining weeks, including extensions (If exhausted except for training benefits, for remaining weeks of training benefits but not for weeks of any extensions unless specifically authorized by law). Minimum amount payable weekly will be $155. For claims with an effective date on or after May 3, 2009, and before January 3, 2010, the weekly benefit amount plus an additional $45 for all weeks of regular, extended, emergency, supplemental or additional claims. Minimum amount payable weekly will be $155. Weekly benefit amounts payable increase the maximum amount payable weekly. This increased benefit does not apply to claims with an effective date on or after January 3, 2010 (New section, added to Chapter 50.20, by Ch. 3 (H. 1906), L. 2009). The temporary benefit increase is not to be charged to the experience rating account of any contributing paying employer (Sec. 50.29.021, as amended by Ch. 3 (H. 1906), L. 2009).
Benefit eligibility: Requirements-
Able and available for work. Claimant not ineligible if unavailable for work due to training with approval of commissioner.
Unemployed for one-week waiting period.
To qualify for benefits, a claimant must earn wages in not less than 680 hours of his or her benefit year.
Claimant ineligible if the base year wages include wages earned prior to the establishment of a prior benefit year, unless the individual worked and earned wages since the last separation from employment immediately before the application for initial determination in the previous benefit year if unemployed at the time of application, or since the initial separation in the previous benefit year if the applicant was not unemployed at the time of application, of at least six times weekly benefit amount.
Benefits may not be paid to instructors, researchers or certain administrators of any educational institution during school vacation periods or paid sabbatical leaves based on service with such institution.
Benefits may not be paid to nonprofessional employees of educational institutions during school vacation periods if there is a reasonable assurance of reemployment in the second year or term. Retroactive payments of benefits will be granted if no opportunity to work in the second year or term is then given.
Benefits are not payable to school employees during established and customary vacation periods or holiday recesses if there is reasonable assurance of reemployment after the holiday or recess.
Benefits are not payable based on services performed for an educational institution while in the employ of an educational service district.
Benefits are not payable to a professional athlete for periods between sport seasons if there is a reasonable assurance that the individual will return for the second season.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence, was lawfully present for the purposes of performing services, or is otherwise permanently residing in the United States under color of law.
An individual will not be denied benefits because he or she is in training approved under the Trade Act of 1974.
Failure to attend a job search workshop or training or retraining course that is available at public expense results in ineligibility.
Disqualifications-Period.- Voluntary leaving without good cause-first day of week in which individual left work and thereafter for seven calendar weeks and until the individual has obtained bona fide work and earned wages equal to seven times the weekly benefit amount. An individual is not considered to have voluntarily left work without good cause if he or she leaves to accept a bona fide job offer, if separation was because of illness or disability of claimant or a member of his or her immediate family or the death of a member of his or her immediate family (in latter case, claimant must have promptly notified employer of the reason for absence and have requested reemployment when again able to do so), if claimant has left work to relocate for the spouse's employment that is due to an employer-initiated mandatory transfer, when it is outside the existing labor market area if the claimant remained employed as long as was reasonable prior to the move, or the separation was necessary to protect the claimant or the claimant's immediate family members from domestic violence or stalking. An individual whose marital status or domestic responsibilities cause him or her to leave is disqualified
for seven weeks and until he or she requalifies by obtaining bona fide work and earning wages equal to seven times the weekly benefit amount or
reports in person to the department in 10 different calendar weeks and certifies to his or her willingness to and availability for work.
Good cause is not established for leaving work because of its distance from individual's residence if such distance is customarily traveled by workers in the individual's job classification and labor market.
Discharge or suspension for misconduct connected with work -first day of week in which discharged or suspended and thereafter for seven weeks and until the individual has obtained work and earned wages equal to seven times the weekly benefit amount. Alcoholism does not constitute a defense to disqualification for misconduct. An individual who is discharged because of a felony or gross misdemeanor of which he or she has been convicted, or has admitted committing to a competent authority and that is connected with his or her work has all hourly wage credits based on the employment canceled.
Refusal of suitable work-week of refusal and thereafter for seven weeks and continuing until the individual has obtained work and earned wages of at least seven times the weekly benefit amount.
Labor dispute-any week with respect to which unemployment is due to a strike at the factory, establishment, or other premises at which the individual is or was last employed or due to a lockout by an employer who is a member of a multi-employer bargaining unit and who has locked out the employees at the factory, establishment, or other premises at which the individual is or was last employed after one member of the unit has been struck by its employees as a result of the multi-employer bargaining process. No disqualification if the individual is not participating in or financing or directly interested in the strike or lockout that has caused his or her unemployment and does not belong to a grade or class of workers of which, immediately before the beginning of the strike or lockout, there were members employed at the premises who were participating in or financing or directly interested in the strike or lockout. If in any case separate branches of work that are commonly conducted as separate businesses in separate premises are conducted in separate departments of the same premises, each such department will be deemed to be a separate factory, establishment, or other premises. Any disqualification due to a labor dispute will terminate when the strike or lockout ends.
Misrepresentation to obtain benefits-27 weeks.
A student registered at an established school in a course of study providing scholastic instruction of 12 or more hours per week is disqualified for any week during the school year, beginning with the first week of scholastic instruction or the week of leaving employment to return to school, whichever is earlier, and ending with the week immediately before the first full week in which he or she is no longer registered for classes. Nonregistration must continue for at least 60 days. The disqualification does not apply to an individual who is in approved training or who demonstrates by a preponderance of the evidence that he or she is available for work.
Note: There is no disqualification for an individual separated because of garnishment of his or her wages, except if there have been garnishments served on his or her employer on three or more separate indebtednesses within a 12-month period.
Receipt of pension-Weekly benefit amount is reduced by the amount of any governmental or other pension, retirement or retired pay, annuity or any other similar periodic payment that is based on the claimant's previous work, but only if pension plan was contributed to by a base-period employer. Amount of reduction must take into consideration any contributions to the plan by the employee. No deductions for individuals receiving federal social security.
Receipt of temporary or permanent disability benefits -any day on which he or she is receiving, has received, or will receive disability benefits.
WHAT THE EMPLOYER MUST DO
Standard rate.- New employers pay a rate equal to the average industry classification, plus 15% of that amount, but not less than 1.0% or more than the amount in rate class 40. Delinquent employers pay 0.2 higher than that in rate class 40, except that an employer who has an approved agency-deferred payment contract by September 30 of the previous rate year who fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner will have its rate immediately reverted to that in rate class 40. Maximum possible rate for other than delinquent employers is 5.4%. No employee tax.
Experience rates.- Beginning in 2005, the contribution rate for each employer subject to contributions will be the sum of the array calculation factor rate, the graduated social cost factor rate and the solvency surcharge if any.
The array calculation factor rate is determined as follows:
(i) An array will be prepared, listing all qualified employers in ascending order of their benefit ratios. The array will show for each qualified employer: (A) identification number; (B) benefit ratio; and (C) taxable payrolls for the four consecutive calendar quarters immediately preceding the computation date and reported to the employment security department by the cut-off date.
(ii) Each employer in the array will be assigned to one of 40 rate classes according to his or her benefit ratio, and the array calculation factor rate for each employer in the array will be the rate specified in the rate class to which the employer has been assigned.
Social cost factor.- The graduated social cost factor rate is determined as follows:
The Commissioner will calculate the flat social cost factor for a rate year by dividing the total social cost by the total taxable payroll. The division will be carried to the second decimal place with the remaining fraction disregarded unless it amounts to five hundredths or more, in which case the second decimal place will be rounded to the next higher digit. The flat social cost factor will be expressed as a percentage.
If, on the cut-off date, the balance in the unemployment compensation fund is determined by the Commissioner to be an amount that will provide more than 10 months of unemployment benefits, the Commissioner will calculate the flat social cost factor for the rate year immediately following the cut-off date by reducing the total social cost by the dollar amount that represents the number of months for which the balance in the unemployment compensation fund on the cut-off date will provide benefits above 10 months and dividing the result by the total taxable payroll. However, the calculation for a rate year may not result in a flat social cost factor that is more than 0.2% lower than the calculation in the paragraph above for that rate year.
The commissioner will determine the number of months of unemployment benefits in the unemployment compensation fund using the benefit cost rate for the average of the three highest calendar benefit cost rates in the 20 consecutive completed calendar years immediately preceding the cut-off date or a period of consecutive calendar years immediately preceding the cut-off date that includes three recessions, if longer. The minimum flat social cost factor under this provision will be 0.6%.
The graduated social cost factor rate for each employer in the array is the flat social cost factor multiplied by the percentage specified as follows for the rate class to which the employer has been assigned, except that the sum of an employer’s array calculation factor rate and the graduated social cost factor rate may not exceed 6.5%.
Rate class 1--78%; Rate class 2--82%; Rate class 3--86%; Rate class 4--90%; Rate class 5--94%; Rate class 6--98%; Rate class 7--102%; Rate class 8--106%; Rate class 9--110%; Rate class 10--114%; Rate class 11--118%; and Rate classes 12-40--120%.
Note that for employers whose standard industrial classification code is within major group “01,” “02,” “07,” “091,” “203,” “209,” or “5148,” or the equivalent code in the North American industry classification system code, may not exceed 6.0%.
Employee Assistance Fund.- A separate 0.02% is collected from each rated employer and deposited in an account in the Administrative Contingency Fund to be used for the financing of the Employment Assistance Program. If the Commissioner finds that federal funding has been increased to provide financing for the Employment Assistance Program, collection of the 0.02% tax will be terminated on the following January 1.
Current contribution rates.- For calendar year 2009, rates range from 0.0% to 5.4%. The Employment Administration Fund (EAF) remains in effect for 2009 but there is no solvency surcharge. The table below shows the rates for 2009:
Benefit Ratio
|
Rate
|
Rate
|
|---|
At least
|
Less than
|
Class
|
(percent)
|
|---|
|
|
0.000001
|
1
|
0.00
|
0.000001
|
0.001250
|
2
|
0.13
|
0.001250
|
0.002500
|
3
|
0.25
|
0.002500
|
0.003750
|
4
|
0.38
|
0.003750
|
0.005000
|
5
|
0.50
|
0.005000
|
0.006250
|
6
|
0.63
|
0.006250
|
0.007500
|
7
|
0.75
|
0.007500
|
0.008750
|
8
|
0.88
|
0.008750
|
0.010000
|
9
|
1.00
|
0.010000
|
0.011250
|
10
|
1.15
|
0.011250
|
0.012500
|
11
|
1.30
|
0.012500
|
0.013750
|
12
|
1.45
|
0.013750
|
0.015000
|
13
|
1.60
|
0.015000
|
0.016250
|
14
|
1.75
|
0.016250
|
0.017500
|
15
|
1.90
|
0.017500
|
0.018750
|
16
|
2.05
|
0.018750
|
0.020000
|
17
|
2.20
|
0.020000
|
0.021250
|
18
|
2.35
|
0.021250
|
0.022500
|
19
|
2.50
|
0.022500
|
0.023750
|
20
|
2.65
|
0.023750
|
0.025000
|
21
|
2.80
|
0.025000
|
0.026250
|
22
|
2.95
|
0.026250
|
0.027500
|
23
|
3.10
|
0.027500
|
0.028750
|
24
|
3.25
|
0.028750
|
0.030000
|
25
|
3.40
|
0.030000
|
0.031250
|
26
|
3.55
|
0.031250
|
0.032500
|
27
|
3.70
|
0.032500
|
0.033750
|
28
|
3.85
|
0.033750
|
0.035000
|
29
|
4.00
|
0.035000
|
0.036250
|
30
|
4.15
|
0.036250
|
0.037500
|
31
|
4.30
|
0.037500
|
0.040000
|
32
|
4.45
|
0.040000
|
0.042500
|
33
|
4.60
|
0.042500
|
0.045000
|
34
|
4.75
|
0.045000
|
0.047500
|
35
|
4.90
|
0.047500
|
0.050000
|
36
|
5.05
|
0.050000
|
0.052500
|
37
|
5.20
|
0.052500
|
0.055000
|
38
|
5.30
|
0.055000
|
0.057500
|
39
|
5.35
|
0.057500
|
and up
|
40
|
5.40
|
Advance interest tax.- For any calendar quarter for which it is determined that there will be an outstanding balance of accruing interest on federal loans to Washington, each contributing employer (with the exception of certain local governmental entities paying the local government tax) will pay an additional tax, not to exceed .15%, which will be used to pay such interest. No assessment is currently in effect.
Voluntary payments.- An employer may make a voluntary contribution of an amount equal to part or all of the benefits charged to that employer's account during the two years most recently ended on June 30 that were used to compute the employer's contribution rate, plus a surcharge of 10% of the voluntary payment. The minimum voluntary contribution, not including the surcharge, must be an amount that will result in a recomputed benefit ratio that is in a rate class at least two rate classes lower than the rate class that included the employer's original benefit ratio. Payment of a voluntary contribution is considered timely if received during the period beginning on the date of mailing of the notice of contribution rate to the employer and ending on February 15 of the rate year. These provisions do not apply to any employer who has not had an increase of at least six rate classes from the previous tax rate year.
DEADLINES
Tax and wage.- Contribution report, Form EMS 5208A and a detailed wage report, Form EMS 5208B, are due quarterly on or before last day of month following quarter. If due date falls on Saturday, Sunday, legal holiday, contributions received on next workday are deemed timely paid. Reports postmarked on or before the due date are deemed timely filed. Electronic and online Internet filing are available.
ENFORCEMENT
The Washington Employment Security Act is administered by the Washington Employment Security Department.
When a notice of assessment has been delivered or mailed to an employer, the employer may, within 30 days thereafter, file a petition for a hearing in writing with the appeal tribunal. If no such petition is filed, the assessment is conclusively deemed to be correct, subject, however, to a subsequent application for refund. The filing of the petition will stay a distraint and sale proceeding until a final decision is reached, but it will not affect the Commissioner's right to perfect a lien. The decision of the appeal tribunal will be reviewed by the Commissioner if a petition for such review is filed within 30 days. An appeal from the Commissioner's decision may be taken to the Superior Court within 30 days. Appeal shall lie from the judgment of the Superior Court to the Supreme Court as in other civil cases.
Jeopardy assessments are also permitted by the Act.
If, after due notice, an employer defaults in any payment of contributions, interest or penalties, the amount due may be collected by a civil action in the name of the state. The employer adjudged in default must pay the costs of the action. Any lien created by the Act may be foreclosed by decree of court in any such action. Civil actions brought hereunder are entitled to preference on the calendar of the court over all other civil actions except petitions for judicial review under the Act and actions arising under the state industrial insurance laws. The attorney general and any assistants represent the Commissioner in enforcement of the Act.
If a nonresident employer or a resident employer that has moved out of the state is delinquent in payment of contributions, such employer will be deemed to have appointed the Secretary of State as its agent and attorney for the acceptance of process of any civil action arising out of such delinquent contributions. The courts of the state of Washington will entertain actions to collect contributions, interest and penalties thereon for which liability has accrued under the employment security law of any state or of the federal government.
Remedies provided by the Act for collection of contributions are cumulative and no action taken may be construed to be an election to pursue any remedy to the exclusion of any other.
WHO TO CONTACT
The Washington Employment Security Act is administered by the Washington Employment Security Department, Employment Security Building, 212 Maple Park, Olympia, Washington 98507-9046. Telephone (360) 902-9500.
RECORDKEEPING
Every employing unit is required to keep for not less than four years true and accurate work records containing whatever information the Commissioner prescribes. These records must be kept open to inspection and may be copied by the Commissioner or his or her authorized representatives at any reasonable time and as often as may be necessary. Each employer must make periodic reports, setting forth the remuneration paid for employment to workers in its employ, the names of all workers, and the hours worked by each worker. If an employer fails to report the number of hours worked by an individual, the Commissioner will make his or her own computation. Such computation may be redetermined (but not appealed) upon receipt of credible evidence of actual hours worked. The records of an employer maintained within the State pertaining to employment of persons in another state shall be open to representatives of the Commissioner to permit cooperation with other state agencies.
Any information or records concerning an individual or employing unit obtained by the Department will be private and confidential, except as follows:
an individual will have access to all records and information concerning himself or herself, unless such information is exempt from disclosure;
an employing unit will have access to its own records and to any records and information relating to a benefit claim by an individual if such employing unit is either the individual's last employer or the individual's base year employer;
an employing unit will have access to general summaries of benefit claims by individuals whose benefits are chargeable to its account;
an employing unit shall have access to any records and information relating to any decision to allow or deny benefits if (a) the decision is based on employment or on an offer of employment with the employing unit or (b) the decision is based on material information provided by the employing unit;
any interested party in a proceeding before the appeal tribunal or the Commissioner will have access to otherwise confidential information and records if it is material to the proceeding; and
certain governmental agencies may acquire records and information for official purposes, if proper application is filed with the Department.
Under conditions specified in the Act, private and confidential information and records obtained by the Department may be disclosed to government agencies, including law enforcement agencies; for use in judicial or formal administrative proceedings; and by private persons and organizations. Misuse or unauthorized release of confidential information by a private person or organization is subject to fine.
POSTING
Each employer must post in its place of business, in places readily accessible to employees, printed statements of the Commissioner's regulations relating to claims for benefits, and such other notices as the Commissioner may prescribe. The statements will be furnished by the Commissioner without cost to the employer. See ¶49-9900 .
PENALTIES
Interest and penalties.- Contributions unpaid on the due date bear interest at the rate of 1% per month or fraction thereof from and after such date until payment is received by the Commissioner. Interest will not accrue on contributions from an estate in the hands of a receiver, trustee, executor, etc. until that individual has qualified as such, and where delinquency is due to the fault of the Department, interest may be waived. Contributions erroneously paid to another state or to the United States and later paid to Washington are deemed to have been paid to Washington as of the date of their erroneous payment, for interest purposes.
If an employer fails to file, in a timely and complete manner, any required report, it will be subject to a minimum penalty of $10 per violation.
If the contributions are not timely paid, penalties will be assessed as follows:
5% of the amount of contributions due for the first month or part thereof of delinquency;
a total of 10% of the amount of contributions for the second month or part thereof; and
a total of 20% of the amount of contributions for the third month or part thereof.
No penalty so added may be less than $10, and the penalty is in addition to interest charges.
Where adequate information has been furnished to the Department and the Department has failed to act or has advised the employer of no liability or inability to decide the issue, penalties will be waived by the Commissioner. Penalties may also be waived for good cause if the Commissioner determines that the failure to timely file reports or pay contributions was not due to the employer's fault.
A fine of not more than $5,000, or imprisonment for not more than one year, or both, may be imposed on any person who willfully attempts to evade the payment of contributions. Any person (including partnerships and corporations) who violates the provisions of the Act, which violation is declared to be unlawful, and for which no contrary provision is made, shall be guilty of a misdemeanor and shall be punished by a fine of not less than $20 nor more than $250 or by imprisonment for not more than 90 days. Reporting to the Employment Security Department as cause for an employee's dismissal a reason contrary to the one given the claimant at the time of dismissal is such a misdemeanor.
If, at any time, the Commissioner finds that contributions, interest or penalties have become delinquent, he or she may issue a notice of assessment specifying the amount due. This notice will be served upon the delinquent employer in the manner prescribed for serving a summons in a civil action or, by certified mail to the employer's last known address as shown in the Department's records. Failure of the employer to receive the notice or order, whether served or mailed, will not release the employer from any tax, or any interest or penalties thereon. If the amount of the assessment is not paid within ten days after service or mailing of the notice, the Commissioner or a representative may collect the amount assessed by the distraint, seizure, and sale of property of the employer.
Whenever any order and notice of assessment or jeopardy assessment becomes final, the Commissioner may file with the clerk of any county in the state a warrant in the amount of the notice plus interest, penalties, and a filing fee.
Delinquent payments in lieu of contributions, interest, and penalties may be recovered from political subdivisions or any instrumentality of such a subdivision by civil action. The governor may deduct the delinquent amounts from any monies payable by the state to such political subdivisions or instrumentalities and instead pay such amounts to the Commissioner.
Where collection of the full amount of any claim for contributions, interest or penalties would result in the insolvency of the liable employing unit or individual, the Commissioner is authorized to compromise such claim; and any such compromise is final and conclusive in the absence of a showing of fraud, malfeasance or misrepresentation of a material fact, and will be upheld in any subsequent suit, action or proceeding.
Except in the case of a false or fraudulent return or of failure to file a return, when proceedings for the assessment or collection of contributions, interest or penalties may be begun at any time, any such proceedings must be commenced within three years after a return is filed.
A delinquent employer may be enjoined from continuing business or employing persons in the state until the delinquent contributions, interest, and penalties have been paid or until the employer has furnished bond in the amount of double the amount of delinquent contributions, interest, and penalties, plus whatever the court deems adequate to protect the Department in collecting sums that will become due in the following calendar year.
The remedies provided by the Act for determining the justness or correctness of assessments or refund or adjustment claims are exclusive. No court may entertain any action to enjoin an assessment or require a refund or adjustment except in accordance with the provisions of the Act. Matters which may be determined by procedures set out in the Act shall not be the subject of any declaratory judgment.
The Commissioner is authorized to issue to any person, firm, corporation, political subdivision or department of the state a notice and order to withhold and deliver property when the Commissioner has reason to believe that such person or entity possesses property that is due to a person, firm or corporation upon whom a notice of overpayment assessment or a notice and order of assessment for unemployment compensation contributions, interest, or penalties has been served by the Department.
Benefits are not assignable and may not be pledged or encumbered. They are exempt from any debt collection remedy, except in the case of child support obligations, which are deductible by the Commissioner.
Liens.- Contributions, interest, and penalties unpaid when due become a lien, prior to all other liens or claims and on a parity with prior tax liens, against all property of the employer. The lien shall only attach to the property and be effective from the date of the filing of a statement by the Department with the appropriate county auditor.
Bankruptcy.- In the event of the distribution of an employer's assets pursuant to an order of any court in a receivership, probate, legal dissolution or similar proceeding, or in the case of any assignment for the benefit of creditors or composition or similar proceeding, contributions, interest or penalties then or thereafter due are a lien upon all the assets of such employer. This lien is prior to all other liens or claims except prior tax liens, liens filed in accordance with the provisions of the preceding paragraph, and claims for wages not exceeding $250 to each claimant earned within the preceding six months. The mere existence of a condition of insolvency or the institution of a legal procedure causes the lien to attach without any action by the Commissioner. In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal, or composition under the Federal Bankruptcy Act, contributions, interest or penalties then or thereafter due are entitled to the priority provided in that Act.
<p>Bankruptcy.— In the event of the distribution of an employer's assets pursuant to an order of any court in a receivership, probate, legal dissolution or similar</p>
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