Current through Register Vol. 24-18, September 15, 2024
(1)
Beginning in rate year 2008, unemployment insurance tax rates for new employers
shall be based on the history factor of new employers over the last three
fiscal years applied to the experience tax and the social cost factor tax for
each industry. The history factor shall be ninety percent, one hundred percent,
or one hundred fifteen percent, based on the experience of new employers over
the last three years, and shall be calculated under
RCW
50.29.025.
(2) As used in this section:
(a) "NAICS" is an abbreviation for North
American Industry Classification System;
(b) "Industry average array calculation
factor rate" means the average experience-based tax rate for a particular
industry. When multiplied by the history factor, it will be referred to as the
"experience tax."
(c) "Industry
average social cost factor rate" means the average social tax rate for a
particular industry. When multiplied by the history factor, it will be referred
to as the "social cost factor tax."
(d) "History factor" shall be ninety percent,
one hundred percent, or one hundred fifteen percent, depending on the ratio of
benefits charged and contributions paid in the last three fiscal years by
employers who were not considered a "qualified employer" under WAC
192-320-030 or were not
delinquent on taxes under WAC
192-320-035. It shall be computed
annually and is not limited to a particular industry.
(3) When calculating the experience tax and
social cost factor tax, the department will use the first four digits of the
NAICS code of the industry being calculated.
(4) Experience tax.
(a) The department will calculate the
experience tax as follows:
(i) A table will be
prepared that contains each of the forty rate classes;
(ii) For each rate class, the department will
multiply, total, and display the taxable payrolls for all qualified employers
assigned to that rate class with the NAICS code being calculated, by the
percentage assigned to that rate class;
(iii) The department will total the tax rates
for the forty industry rate classes and divide the sum by the total of all
payrolls used in the calculation; and
(iv) The department will multiply the result
by the history factor for that year, and show the final amount as a percentage
rounded to two decimal places.
(b) The experience tax must be at least 1.00
percent and not more than 5.4 percent.
(5) Social cost factor tax.
(a) The department will calculate the social
cost factor tax as follows:
(i) The
experience tax table will show the percentage of the social cost factor tax
assigned to each of the forty rate classes;
(ii) The department will multiply, total, and
display the total payroll in each industry rate class by the percentage of
social cost factor tax assigned to that rate class;
(iii) The department will total the social
cost factor tax rate for the forty industry rate classes and divide the sum by
the total of all payrolls used in the calculation; and
(iv) The department will multiply the result
by the history factor for that year, and show the final amount as a percentage
rounded to two decimal places.
(b) The social cost factor tax for an
industry cannot be higher than the percentage of social cost factor tax
assigned to rate class forty.
(6) If there are no qualified employers in
the four-digit level of the NAICS code, the department will calculate the rates
using the corresponding three-digit level and assign the result to the
four-digit level. If there are no qualified employers in the three-digit level,
the department will calculate the rates using the corresponding two-digit level
and assign the result to both the three-digit and four-digit levels.
Statutory Authority: RCW 50.12.010 and 50.12.040.
07-23-127, § 192-320-025, filed 11/21/07, effective
1/1/08.
