PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 99-19-069.
Title of Rule: Field audit expansion.
Purpose: To create a new rule by converting existing policy as a result of Governor Locke's Executive Order 97-02 and numbered as WAC 192-340-010.
Statutory Authority for Adoption: RCW 50.01.010 and chapter 50.24 RCW.
Statute Being Implemented: RCW 50.24.150.
Summary: This is a new rule created due to the examination of existing policies and procedures in accordance with Governor Locke's Executive Order 97-02. This new rule assists an employer and/or employer representative in describing the audit expansion requirements of the department. The Departments of Labor and Industries, Revenue, and Licensing have similar programs.
Reasons Supporting Proposal: The proposed regulations will clarify these situations for employers.
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 being created in accordance with Governor Locke's Executive Order 97-02 which requires a complete review of agency rules, policies and procedures. This particular rule sets forth the conditions upon which the department may expand an audit. The purpose is to convert an existing policy into a rule per the governor's executive order.
Proposal Changes the Following Existing Rules: See explanation above concerning the addition of two new sections to the rule to preserve and protect the UI trust fund.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rules will not impact businesses in particular industries as defined in chapter 19.85 RCW, but will impact all industries equally. In addition chapter 19.85 RCW (RCW 19.85.025(3) applies below).
Section 201, chapter 403, Laws of 1995, applies to this rule adoption. The proposed rules will meet the intent of RCW 34.05.310. Public access will be through hearings and solicitation of comment from select stakeholders.
Hearing Location: Employment Security Department, Office of Staff Development, Room 1, ESD Annex, 106 Maple Park, Olympia, WA 98504, on December 28, 1999, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact George Mante by December 23, 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 December 23, 1999.
Date of Intended Adoption: December 29, 1999.
November 15, 1999
Carver Gayton
Commissioner
Chapter 192-340-WACAudits and Technical Assistance
NEW SECTION
WAC 192-340-010
Field audit expansion.
The department's audit expansion requirements are as follows:
(1) If underreported or overreported wages for employees originally reported and/or new workers are discovered in the audit year, the department may expand to subsequent year(s). Subsequent year(s) and/or quarter(s) means up to the most recently completed calendar quarters where the tax and wages are reported.
(2) When the department feels there are facts that indicate that the employer has made a conscious effort to avoid taxation, the audit period may be expanded within statutory limitations.
(3) In the post audit interview, it is the responsibility of the department to ensure that audit exceptions are discussed and future reporting requirements are understood by the entity being audited.
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