Original Notice.

Preproposal statement of inquiry was filed as WSR 99-11-088.

Title of Rule: Employer records.

Purpose: To repeal WAC 192-12-050 and make it conform to Governor Locke's Executive Order 97-02. This WAC is being renumbered WAC 192-310-050. We have removed from WAC 192-12-050, subsection (1)(j) relating to farm operators and created a separate rule. We are structuring our rule to come into close conformity with the Department of Labor and Industries rule WAC 296-17-35201 which was adopted in 1995.

Other Identifying Information: We have removed the section on farm operators and created a separate rule numbered WAC 192-310-055.

Statutory Authority for Adoption: RCW 50.12.010 and 50.12.040.

Statute Being Implemented: RCW 50.12.070.

Summary: RCW 50.12 allows the commissioner to adopt or amend rules in accordance with Title 34 RCW. RCW 50.12.070 Employing unit records and reports--Unified business identifier account number records, specifies that "each employing unit shall keep true and accurate work records, containing such information as the commissioner may prescribe." This rule clearly defines the intent of the agency as to what those records should be.

Reasons Supporting Proposal: The proposed regulations will clarify records requirements for unemployment insurance tax purposes for employers and/or their representatives as related to any business.

Name of Agency Personnel Responsible for Drafting: George Mante, 212 Maple Park, Olympia, WA 98507, (360) 902-9642, Implementation and Enforcement: Dale Ziegler, 212 Maple Park, Olympia, WA 98507, (360) 902-9303.

Name of Proponent: Employment Security Department, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This rule is intended to clearly set forth the requirements for the business and financial records that are to be retained by employers for purposes of unemployment insurance taxes. As we have pointed out earlier this rule is being amended in conformity with Governor Locke's Executive Order 97-02. The rule is being renumbered. We are requiring essentially the same information as that required by the Department of Labor and Industries relating to those business and financial records that may be examined for purposes of payroll taxes.

Proposal does not change existing rules. This rule as noted above is being amended and renumbered. The rule is being changed to become more similar to the Department of Labor and Industries. We are trying to be more specific about the business and financial records that this department requires a business to maintain for purposes of applying the Employment Security Act relative to unemployment insurance taxes.

No small business economic impact statement has been prepared under RCW 19.85. The proposed rules will not impact businesses in particular industries as defined in RCW 19.85, but will impact all industries equally. In addition RCW 19.85 ( RCW 19.85.025(3)) applies per paragraph below.

Section 201, chapter 403, Laws of 1995, applies to this rule adoption. The proposed rule will meet the intent of RCW 34.05.310. Public access will be through hearings and solicitation from any interested parties.

Hearing Location: Employment Security Department, Staff Development Room 2 (Annex), 106 Maple Park Drive, Olympia, WA 98504, on September 22, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact George Mante by September 14, 1999, (360) 902-9642.

Submit Written Comments to: George Mante, Tax Reform Coordinator, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046, fax (360) 902-9556, by September 14, 1999.

Date of Intended Adoption: September 22, 1999.

July 23, 1999

Carver Gayton

Commissioner

The commissioner requires every employer to keep true and accurate business, financial, and employment records which are deemed necessary for the effective administration of RCW 50.12.

Every employer shall with respect to each worker, make, keep, and preserve original records containing all of the following information for four calendar years following the calendar year in which employment occurred:

a. The name of each worker;

b. The Social Security number of each worker;

c. The beginning date of employment for each worker and, if applicable, the separation date of employment of each worker;

d. The basis upon which wages and/or remuneration are paid to each worker;

e. The location where such services were performed;

f. A summary time record for each worker showing the calendar day or days of the week work was performed and the actual number of hours worked each day;

g. The workers' total gross pay period earnings;

h. The specific sums withheld from the earnings of each worker, and the purpose of each sum withheld to equate to net pay; and

i. The cause for any discharge where a worker was separated from the job due to discharge; or the cause of any quit where a worker quit the job if the cause for the quit is known.

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     The following section of the Washington Administrative Code is repealed:

WAC 192-12-050

Employer records.