The proposed bill establishes a new excise tax on large employers in Washington, targeting payroll expenses that exceed the social security wage threshold. Set to take effect on July 1, 2026, the tax will be levied at a rate of five percent on excess employee wages, with exemptions for employers whose total employee wages do not exceed $7,000,000 in the previous calendar year. The revenue generated from this tax is intended to support essential public services such as education, healthcare, and social services, aiming to create a more equitable tax system in the state. The bill also outlines compliance requirements for employers, including record-keeping and reporting obligations, and establishes penalties for non-compliance, including fines and potential property seizure for delinquent taxes.

Additionally, the bill introduces new sections to the Revised Code of Washington (RCW) that detail the collection of taxes, interest, and penalties owed to the employment security department. It establishes a continuous effect of notices to withhold and deliver until liabilities are satisfied, and outlines the process for serving these notices, including a 20-day response requirement. The bill allows the commissioner to file a warrant for assessment, creating a lien on the employer's property, and provides mechanisms for enforcing compliance, such as enjoining delinquent employers from continuing business. It also emphasizes the importance of timely responses and includes provisions for administrative hearings and appeals, ensuring that employers can contest assessments. Overall, the bill aims to streamline tax collection and enhance enforcement of tax obligations while ensuring that the collected funds support state government and public institutions.