Washington Administrative Code › Title 192 - Employment Security Department › UNEMPLOYMENT INSURANCE › Chapter 192-300 - Registering for unemployment insurance taxes › Section 192-300-230 - What enforcement, penalties, and collection procedures apply to professional employer organizations and client employers?

Current through Register Vol. 24-14, July 15, 2024
(1) A professional employer organization may
				collect and make payments on behalf of a client employer, but the client
				employer remains liable for the payments of any taxes, interest, or penalties
				due.
(2) Unless the professional
				employer organization has already notified the department that it has not
				received payments from the client employer, the department shall first attempt
				to collect any payments due from the professional employer organization and
				shall not attempt to collect from the client employer until at least ten days
				from the date payment was due. Collection procedures shall follow the
				requirements of chapter 50.24 RCW.
(3) A professional employer organization may
				elect to provide a bond to cover payments due. Any bond for this purpose shall
				be filed with the department, shall be in a form satisfactory to the
				commissioner, and shall be in an amount not less than the amount of
				contributions due in the highest quarter of the preceding calendar year. A bond
				does not relieve the professional employer organization or its client employers
				of ultimate liability for payments due.
(4) In case of error by a professional
				employer organization in which reports are incomplete, inaccurate, or late, or
				if the professional employer organization makes a single payment that does not
				match the amount due for multiple employers, the department will initially
				apply any penalty and interest charges for all amounts due against the
				professional employer organization, regardless of whether the professional
				employer organization has employees in Washington. However, the client employer
				ultimately remains liable for any taxes, penalties, or interest due.
All client employers of a professional employer organization
				  may be subject to the tax rate for delinquent taxpayers if a delinquency under
				  WAC 192-320-035 or
				  192-320-036 cannot be assigned to
				  a specific client employer.
(5) If a professional employer organization
				reports employees of a client employer as its own employees, a first violation
				will be considered an incorrect report for the professional employer
				organization and an untimely report for the client employer under
				RCW
				   50.12.220(2). A second
				violation will be considered knowing misrepresentation under
				RCW
				   50.12.220(3). A third
				violation will be considered grounds for revocation of the authority of a
				professional employer organization to act on behalf of its client
				employers.
(6) The department may
				revoke the authority of a professional employer organization to act on behalf
				of its client employers if the professional employer organization substantially
				fails to comply with the provisions of
				RCW
				   50.12.300. An order to revoke the authority
				of a professional employer organization shall be considered an appealable order
				under chapter 34.05
				RCW comparable to an order and notice of assessment under
				RCW
				   50.32.030.
Statutory Authority:
					 RCW
					 50.12.010 and
					 50.12.040. 13-09-010, §
											192-300-230, filed 4/5/13,
					 effective 5/6/13; 07-23-130, §
											192-300-230, filed 11/21/07,
					 effective 1/1/08.