Unemployment info. reporting

AN ACT Relating to employers' information reporting for purposes 1
of unemployment compensation; and amending RCW 50.12.070 and 2
50.12.220. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 50.12.070 and 2023 c 256 s 1 are each amended to 5
read as follows: 6
(1)(a) Each employing unit shall keep true and accurate work 7
records, containing such information as the commissioner may 8
prescribe. Such records shall be open to inspection and be subject to 9
being copied by the commissioner or his or her authorized 10
representatives at any reasonable time and as often as may be 11
necessary. The commissioner may require from any employing unit any 12
sworn or unsworn reports with respect to persons employed by it, 13
which he or she deems necessary for the effective administration of 14
this title. 15
(b) An employer who contracts with another person or entity for 16
work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve 17
a record of the unified business identifier account number for and 18
compensation paid to the person or entity performing the work. In 19
addition to the penalty in subsection (3) of this section, failure to 20
obtain or maintain the record is subject to RCW 39.06.010.21
S-3544.1
SENATE BILL 5874
State of Washington 69th Legislature 2026 Regular Session
By Senator MacEwen
Prefiled 12/12/25.
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(2)(a)(i) Each employer shall register with the department and 1
obtain an employment security account number. Each employer shall 2
make periodic reports at such intervals as the commissioner may by 3
regulation prescribe, setting forth the remuneration paid for 4
employment to workers in its employ, the full names and social 5
security numbers of all such workers, the standard occupational 6
classification or job title of each worker, and the total hours 7
worked by each worker and such other information as the commissioner 8
may by regulation prescribe. ((Reporting the standard occupational 9
classification or job title of each worker is optional for employers 10
until October 1, 2022 )) The department must allow an employer to 11
amend a periodic report filed before its due date up until the 12
report's due date without penalty. 13
(ii) A federally recognized tribe may elect to report the 14
standard occupational classifications or job titles of workers. If a 15
federally recognized tribe elects to report standard occupational 16
classifications or job titles, it retains the option to opt out of 17
reporting at any time for any reason it deems necessary. The 18
department shall adopt rules to implement this subsection (2)(a)(ii).19
(b) If the employing unit fails or has failed to report the 20
number of hours in a reporting period for which a worker worked, such 21
number will be computed by the commissioner and given the same force 22
and effect as if it had been reported by the employing unit. In 23
computing the number of such hours worked, the total wages for the 24
reporting period, as reported by the employing unit, shall be divided 25
by the dollar amount of the state's minimum wage in effect for such 26
reporting period and the quotient, disregarding any remainder, shall 27
be credited to the worker: PROVIDED, That although the computation so 28
made will not be subject to appeal by the employing unit, monetary 29
entitlement may be redetermined upon request if the department is 30
provided with credible evidence of the actual hours worked. Benefits 31
paid using computed hours are not considered an overpayment and are 32
not subject to collections when the correction of computed hours 33
results in an invalid or reduced claim; however: 34
(i) A contribution paying employer who fails to report the number 35
of hours worked will have its experience rating account charged for 36
all benefits paid that are based on hours computed under this 37
subsection; and 38
(ii) An employer who reimburses the trust fund for benefits paid 39
to workers and fails to report the number of hours worked shall 40
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reimburse the trust fund for all benefits paid that are based on 1
hours computed under this subsection. 2
(3) Any employer who fails to keep and preserve records required 3
by this section shall be subject to a penalty determined by the 4
commissioner but not to exceed ((two hundred fifty dollars )) $250 or 5
((two hundred )) 200 percent of the quarterly tax for each offense, 6
whichever is greater. 7
Sec. 2. RCW 50.12.220 and 2020 c 334 s 3 are each amended to 8
read as follows: 9
(1) If an employer fails to file a timely report as required by 10
RCW 50.12.070, or the rules adopted pursuant thereto, the employer is 11
subject to a penalty of ((twenty-five dollars )) $25 per violation, 12
unless the penalty is waived by the commissioner or subsection (2)(c)13
(ii) of this section applies. 14
(2) An employer who files an incomplete or incorrectly formatted 15
tax and wage report as required by RCW 50.12.070 must receive a 16
warning letter for the first occurrence. The warning letter will 17
provide instructions for accurate reporting or notify the employer 18
how to obtain technical assistance from the department. Except as 19
provided in subsections (3) and (4) of this section, for subsequent 20
occurrences within five years of the last occurrence, the employer is 21
subject to a penalty as follows: 22
(a) When no contributions are due: For the second occurrence, the 23
penalty is ((seventy-five dollars )) $75; for the third occurrence, 24
the penalty is ((one hundred fifty dollars)) $150; and for the fourth 25
occurrence and for each occurrence thereafter, the penalty is ((two 26
hundred fifty dollars)) $250. 27
(b) When contributions are due: For the second occurrence, the 28
penalty is ((ten)) 10 percent of the quarterly contributions due, but 29
not less than ((seventy-five dollars )) $75 and not more than ((two 30
hundred fifty dollars )) $250; for the third occurrence, the penalty 31
is ((ten)) 10 percent of the quarterly contributions due, but not 32
less than ((one hundred fifty dollars )) $150 and not more than ((two 33
hundred fifty dollars )) $250; and for the fourth occurrence and each 34
occurrence thereafter, the penalty is ((two hundred fifty dollars )) 35
$250. 36
(c)(i) The commissioner may waive penalties for minor or 37
insignificant reporting errors. For purposes of this section, "minor 38
or insignificant reporting errors" includes, but is not limited to, 39
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inadvertent errors caused by the failure of any electronic software 1
to properly produce a tax and wage report with the standard 2
occupational classification or job title of each worker.3
(ii) An employer whose tax and wage report is incomplete due to a 4
failure to report the standard occupational classification or job 5
title of each worker must pay an incomplete report penalty under this 6
subsection only if the employer knowingly failed to report the 7
standard occupational classification or job title of each worker.8
(3) If an employer knowingly misrepresents to the employment 9
security department the amount of his or her payroll upon which 10
contributions under this title are based, the employer shall be 11
liable to the state for up to ((ten)) 10 times the amount of the 12
difference in contributions paid, if any, and the amount the employer 13
should have paid and for the reasonable expenses of auditing his or 14
her books and collecting such sums. Such liability may be enforced in 15
the name of the department. 16
(4) If contributions are not paid on the date on which they are 17
due and payable as prescribed by the commissioner, there shall be 18
assessed a penalty of five percent of the amount of the contributions 19
for the first month or part thereof of delinquency; there shall be 20
assessed a total penalty of ((ten)) 10 percent of the amount of the 21
contributions for the second month or part thereof of delinquency; 22
and there shall be assessed a total penalty of ((twenty)) 20 percent 23
of the amount of the contributions for the third month or part 24
thereof of delinquency. No penalty so added shall be less than ((ten 25
dollars)) $10. These penalties are in addition to the interest 26
charges assessed under RCW 50.24.040. 27
(5) Penalties shall not accrue on contributions from an estate in 28
the hands of a receiver, executor, administrator, trustee in 29
bankruptcy, common law assignee, or other liquidating officer 30
subsequent to the date when such receiver, executor, administrator, 31
trustee in bankruptcy, common law assignee, or other liquidating 32
officer qualifies as such, but contributions accruing with respect to 33
employment of persons by a receiver, executor, administrator, trustee 34
in bankruptcy, common law assignee, or other liquidating officer 35
shall become due and shall be subject to penalties in the same manner 36
as contributions due from other employers. 37
(6) Where adequate information has been furnished to the 38
department and the department has failed to act or has advised the 39
employer of no liability or inability to decide the issue, penalties 40
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shall be waived by the commissioner. Penalties may also be waived for 1
good cause if the commissioner determines that the failure to file 2
timely, complete, and correctly formatted reports or pay timely 3
contributions was not due to the employer's fault. 4
(7) Any decision to assess a penalty as provided by this section 5
shall be made by the chief administrative officer of the tax branch 6
or his or her designee. 7
(8) Nothing in this section shall be construed to deny an 8
employer the right to appeal the assessment of any penalty. Such 9
appeal shall be made in the manner provided in RCW 50.32.030.10
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