Washington Administrative Code › Title 192 - Employment Security Department › UNEMPLOYMENT INSURANCE › Chapter 192-300 - Registering for unemployment insurance taxes › Section 192-300-220 - What unemployment taxes apply to professional employer organizations and client employers?

Current through Register Vol. 24-14, July 15, 2024
(1)
				Effective January 1, 2008, each professional employer organization and each
				client employer shall be assigned an individual tax rate based on its own
				experience.
(2)
(a) This subsection applies to professional
				employer organizations and client employers which have a coemployment
				relationship as of January 1, 2008.
(b) Except as provided in (d) and (e) of this
				subsection, the tax rate for professional employer organizations and client
				employers shall be determined on the basis that the client employer transferred
				from the professional employer organization effective January 1, 2008. A client
				employer's proportionate experience (benefits charged and taxable payroll) for
				the entire first quarter beginning January 1, 2008, shall transfer to the
				client employer. On or after January 1, 2008, experience shall transfer to a
				client employer regardless of whether the professional employer organization
				was the base year employer prior to that date.
(c) The client employer's tax rate shall
				remain unchanged for the remainder of the rate year in which the transfer
				occurred.
(d) Client employers that
				are qualified employers under
				RCW
				   50.29.010 or are delinquent under
				RCW
				   50.29.025(1)(c)(i) and that
				joined a professional employment organization after the computation date of
				July 1, 2007, shall be assigned their own tax rate for 2008 as if they had not
				joined the professional employer organization. Any experience from July 1,
				2007, to December 31, 2007, assigned to the professional employer organization
				for those client employers shall transfer to the client employer for purposes
				of setting future rates.
(e) If an
				employer is registered with the department and has its own tax rate, but is
				also a client employer for purposes of some of its employees, it shall keep its
				own tax rate for 2008 and that rate shall apply to all its employees. Any
				employees of a client employer that is in a coemployment relationship with a
				professional employer organization shall be considered a branch account under
				the registered employer.
(f)
				Beginning on January 1 of the year after the transfer, the client employer's
				tax rate for each rate year shall be based on a combination of:
(i) The client employer's experience with
				payrolls and benefits; and
(ii) The
				experience assigned to the professional employer organization which is
				attributable to the client employer, based on the percentage of employees
				transferred as of January 1, 2008, regardless of the date the client employer
				joined the professional employer organization.
(g)
(i) The
				professional employer organization's tax rate on any payroll retained by the
				professional employer organization shall remain unchanged for the remainder of
				the year in which the transfer occurs.
(ii) Beginning on January 1 of the year after
				the transfer, the professional employer organization's tax rate for each rate
				year shall be based on its experience with payrolls and benefits as of the
				regular computation date for that rate year excluding the experience that has
				been attributed to client employers.