The bill amends RCW 50.12.220 to update penalties for employers who fail to file timely or correctly formatted tax and wage reports for unemployment compensation. It establishes a penalty of $25 for each violation of timely reporting, with a warning letter issued for the first occurrence of an incomplete or incorrectly formatted report. Subsequent violations within five years will incur increased penalties, including a $75 penalty for the second occurrence and a $150 penalty for the third occurrence, with further penalties depending on whether contributions are due. The bill also allows the commissioner to waive penalties for minor or insignificant reporting errors, particularly those caused by electronic software failures.

Additionally, the bill specifies that if an employer knowingly misrepresents payroll amounts, they may be liable for up to 10 times the difference in contributions owed. It introduces a structured penalty system for late contributions, starting at 5% for the first month of delinquency and increasing to 20% for the third month. The bill also outlines conditions under which penalties may be waived, such as when the department fails to act on provided information or if the employer's failure to comply was not their fault. Overall, the amendments aim to clarify reporting requirements and penalties while providing some flexibility for minor errors.

Statutes affected:
Original bill: 50.12.070, 50.12.220
Substitute bill: 50.12.220
Bill as passed Legislature: 50.12.220
Session law: 50.12.220